Durban - Former Msunduzi deputy mayor Alpha Shelembe was acquitted of money-laundering by the Pietermaritzburg Magistrate's Court on Tuesday, the NPA said.
Shelembe's wife Joyful Shelembe was also acquitted, but businessman Lucky Moloi was found guilty of corruption and would be sentenced on June 20, said National Prosecuting Authority (NPA) spokeswoman Natasha Ramkisson.
The Shelembes originally faced charges of fraud, corruption and money-laundering with Moloi's sister Nelisiwe, and bodyguard Thembvinkosi Xaba.
They were accused of sharing a R1 million commission on a property, bought by the uMgungundlovu district municipality, with estate agent Neville Watts and Themba Zungu.
Zungu and Watts, who have both since died, allegedly helped Shelembe convince the municipality to buy the property for R6.85m in 2003, while other more suitable properties were available.
In 2011, Shelembe resigned from his position as deputy mayor and regional treasurer of the African National Congress. Last year he was elected chairman of the ANC's Moses Mabhida region. - Sapa