Durban — One of the State witnesses in the fraud and corruption trial of former eThekwini mayor Zandile Gumede and 21 others, including various companies, will testify how the approved budget for the Durban Solid Waste tender in question was exceeded without the required authority from the office of the head of DSW.
Gumede and her co-accused face more than 2 000 charges – including conspiracy to commit corruption, corruption, fraud, money laundering, racketeering, contravention of the Municipal Finance Management Act, and of the Municipal Systems Act – amounting to more than R300 million in relation to a DSW tender.
The trial got under way on Monday in the Durban High Court, where State advocate Hazel Siramen named some of the witnesses to testify.
She said that Raymond Rampersad, who was employed as the head of DSW, would testify that former city manager Sipho Nzuza, an accused, interfered with the operational duties of accused 4 (Allan Robert Abbu, who was the deputy head at DSW).
“This is in respect of appointing accused 4 (Abbu) as the head of special projects and the reporting lines between himself (Rampersad) and accused 4, who was his subordinate.
“He will also testify that accused 4 (Abbu) was appointed head of special projects by accused 3 (Nzuza) on October 20, 2017, without his knowledge. He only found out about this appointment well after the appointment date.”
Siramen said Noluthando Magewu, the acting head of DSW, who replaced Rampersad for a period, would testify about the role played by Nzuza in extending the DSW contract to the four main contractors that were awarded the tender for a further six months.
“Notwithstanding the fact that at the time that accused 3 (Nzuza) gave the instruction, payments made to the main contractors were in excess of an estimated R130 million, while the original contract amount in respect of the DSW tender was only R45 million.”
The State alleges that Gumede, Mondli Mthembu (an accused and an executive councillor), Nzuza, Abbu and accused Sandile Ngcobo, the former deputy head of supply chain management, as well as Nzuza’s wife Bagcinile, actively associated themselves with the common purpose of working together to manipulate the procurement process.
It is alleged that they worked together to ensure that orders or contracts were awarded to specific suppliers – Ilanga LaMahlase Pty (Ltd), Uzuzinekela Trading 31 CC, Omphile Thabanga Projects, and El Shaddai Holdings CC – all listed as accused.
Siramen said further evidence would be led to show that payments were made from the eThekwini Municipality account to the above four service providers totalling R320 million.
She said Ilanga LaMahlase had from February 5, 2018, to July 8, 2019, received about R89 million; Uzuzinekela Trading 31 CC from February 6, 2018, to June 10, 2019, received about R111 million; Omphile Thabanga Projects from February 16, 2018, to July 8, 2019, received about R67 million; and El Shaddai Holdings CC from February 15, 2018, to July 17, 2019, received about R52 million.
Accused Mzwandile Dludla is the sole director of Ilanga LaMahlase; Zithulele Mkhize is the sole director of Uzuzinekele Trading; accused husband and wife Bongani and Khoboso Dlomo are the sole directors of Omphile Thabanga Projects; while accused Craig Ponnan was in control of El Shaddai Holdings CC.
The trial continues today (Tuesday).
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