The Mnquma municipality, in the Eastern Cape, is accused of spending close to R1-million on a single Christmas tree and some Christmas lights which, according to other estimates, should have cost a quarter of the price.

The Hawks have now been asked to investigate this and other dodgy transactions amounting to about R5-million which have allegedly been paid out since September at the embattled municipality.

This includes a charge of R103000 for 500 cable ties at R206 each.

In a letter from municipal attorneys to the Hawks seen by Sowetan's sister newspaper the Daily Dispatch, the elite crime fighting unit is asked to investigate various transactions allegedly entered into without proper processes being followed.

Mnquma spokesman Loyiso Mpalantshane said reinstated municipal manager Sindile Tantsi was behind the matter being reported to the Hawks.

According to the correspondence dated January 11, the alleged dodgy transactions took place after Tantsi was placed on suspension on September 30. This was while provincial government-deployed administrator Zonwabele Plata acted in the position.

The transactions reported to the Hawks include:

- The alleged illegal appointment and payment of a security company to the value of R481380;

- The procurement of Christmas lights and a tree to the value of R969955;

- The alleged irregular payment of legal fees amounting to over R3-million; and

- Irregular expenditure valued at over R635000 on services and vouchers for the municipality's performance awards.

The security company was allegedly appointed in the wake of violent clashes after the new council was sworn in in August.

The legal fees were paid for numerous court battles emanating from Tantsi's suspension, which has since been reversed by court.

Close to R1-million was paid for a single Christmas tree and a few Christmas lights included a charge of R103000 for 500 cable ties at R206 each. An online search revealed that these cost about R89 for a pack of 50, or R890 for 500 of them.

Siyavuya Construction, the company paid the money, was not present during the tender briefing and admits to being "head-hunted" to submit a quotation a week before being awarded the tender.

The company is owned by Dutywa-born Thobela Stofile, who has carried out other large electrification projects in rural municipalities in the province. Siyavuya was paid R969955.22 for festive season lights in Butterworth, Centane and Ngqamakwe and a solitary Christmas tree in Butterworth.

The Dispatch understands the initial budget for the tender was R400000 to cover the three towns. However, before being awarded it was increased.

According to documentation, tender processes were allegedly authorised by Plata who refused to comment when contacted yesterday.

Mpalantshane last week said: "Proper supply chain processes do not appear to have been followed. We are unable to source documentation as there was a change of guard at the time of the transactions."

Stofile yesterday admitted he had not tendered for the contract but was approached by "the municipality" for a quotation. He would not reveal who approached him.

The appointment letter, meant to be signed by Stofile as owner of Siyavuya Construction, was signed by Mlungisi Nombembe on behalf of Stofile.

Nombembe is said to have strong political connections in the province.

The documents show that Siyavuya Construction then contracted another service provider to carry out a portion of the festive lighting services.

Stofile said he had subcontracted this company "to speed up the process, as there was very little time to do the job".

Attempts to contact Nombembe were unsuccessful.

The owner of an Eastern Cape lighting company, who spoke on condition of anonymity, said the end result "was very basic and amateurish". "What's in Butterworth is an absolute joke - half of it isn't even working. I wouldn't have charged anything more than R350000."

Numerous attempts to get comment from Hawks spokesman Brigadier Hangwani Mulaudzi were unsuccessful.