The Board of Mhlathuze Water, a water utility company based in the north of KwaZulu-Natal, announced yesterday that it has resolved to take disciplinary action against its chief executive, Mthokozisi Duze, and chief financial officer (CFO) Babongile Mnyandu on charges of financial misconduct and maladministration.
The decision follows the outcome of an intensive investigation commissioned by the board in December last year after whistle-blower allegations implicating the two were brought to its attention.
They were subsequently put on precautionary suspension to allow for an investigation to commence.
As per the recommendations of the investigation, an independent disciplinary process will ensue in the coming weeks.
Mhlathuze Water Board chairperson Thabi Shange said Duze and Mnyandu would remain on suspension until the disciplinary process had been concluded.
“The board has acted based on the recommendations of an investigation which found that the two executives had flouted aspects of the Public Finance Management Act. We have reviewed the charges brought against the executives and believe there is sufficient ground to institute disciplinary proceedings,” Shange said.
In a separate investigation, four other officials from the supply chain management and technical services department were also put on precautionary suspension.
The board further resolved that Swaswa Ntlhoro and Thokozane Hlongwane would continue in their roles as interim CEO and CFO, respectively.
This was to ensure that Mhlathuze Water’s mandate of delivering bulk water and waste water services to municipalities and industries in northern KwaZulu-Natal continues unhindered.
Department of Water and Sanitation spokesperson Sputnik Ratau said this was an internal process within this entity that should be resolved between the board and the executives.
He said this process thus far had not impacted the delivery of water to businesses and households that the entity served and they did not expect it to do. Ratau said the department expected the work of the entity to continue as it had been without any hindrance.
Mhlathuze Water (MW) is a state-owned entity established in 1980. It reports to the Department of Human Settlements, Water and Sanitation. It is based in Richards Bay and operates in the province of KwaZulu-Natal. The entity predominantly operates in the uMkhanyakude, King Cetshwayo and Zululand District Municipalities and still harbours plans to expand beyond these areas.
It is supplied by three dominant water sources, the Mhlathuze River, Lake Mzingazi and Lake Nsezi. The organisation’s business activities include raw (untreated), clarified (partially treated) and purified water supply; disposal of industrial and domestic wastewater; and scientific services.
The organisation’s major clients include phosphates and phosphoric acid producer Foskor, mining company Richards Bay Minerals, the City of uMhlathuze and paper manufacturer Mondi.
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