In October 2006, Malatsi was found guilty by the Cape Town Regional Court on charges of corruption after he accepted a R100 000 payment from the developer of the Roodefontein Golf and Country Estate to approve the development, despite clear environmental concerns.
Ngo-Okthoba 2006, iNkantolo yesiFunda eKapa yathola uMalatsi enecala lenkohlakalo ngokwamukela u-R100 000 afumbathiswa wona ngokuphasiswa kokwakhiwa kweRoodefontein Golf and Country Estate, yize kwakukhona ukukhathazeka kokuqhubeka kwalolu hlelo ngenxa yokuphepha kwezemvelo.