Durban - A forensic investigation into alleged fraud and corruption worth hundreds of millions of rand is under way at the cash-strapped Uthukela District and one of its local municipalities, Alfred Duma (Ladysmith).
The investigation comes after the Co-operative Governance and Traditional Affairs Department (Cogta) put Uthukela under administration about 10 months ago.
According to a letter addressed to the municipalities, dated June 24 and signed by a Mr L Pienaar, acting deputy director-general in the department, Cogta MEC Sipho Hlomuka had received allegations pertaining to maladministration, fraud, corruption and nepotism within the two municipalities.
The Daily News has seen the five-page letter in which Hlomuka institutes a forensic investigation, headed by a seven-man team from Mdledle Incorporated law firm, to look into the irregularities and maladministration allegations.
Once the investigation is concluded, Mdledle will submit a report with recommendations for corrective action to the MEC.
“During the investigation it would be necessary for the investigators to liaise both verbally and in writing with councillors, officials, stakeholders and service providers of both municipalities, and they may require access to and seize certain documentation for in-depth review,” reads the letter.
The municipalities in the drought-stricken district have lost about R300million to looting, fraud and corruption, through alleged collusion between councillors and certain officials.
At the centre of the investigation is an amount of R130m, which was reserved for dredging, renovation and rebuilding of the Oliphantskop Dam, and an additional R30m which was also intended for dredging. The required work has not been done, although
tenders were awarded and the money has been spent.
It is alleged that water infrastructure at Ekuvukeni, just outside Ladysmith, was sabotaged, and the investigators would be looking into allegations that councillors and municipal officials then got the contracts to send tankers to supply water to the dry areas.
The letter states that about R140m, intended for project funds in the reserves of the former Indaka Municipality, was allegedly misused since the establishment of the Alfred Duma Local Municipality.
An “irregular” and “unjustified” R5m donation to Ladysmith Black Mambazo is also being investigated, along with 12 other projects which are alleged to have been handled irregularly.
Nepotism in the appointment of 14 people, in the municipality’s Waste Management and Expanded Public Works Programme would also form part of the investigation.
Five-time Grammy-award winners Ladysmith Black Mambazo. An “irregular” and “unjustified” R5m donation to Ladysmith Black Mambazo is also being investigated, along with 12 other projects by KZN government. Picture: File Picture
Both municipalities reportedly welcomed the investigation, with Uthukela deputy mayor Nombali Mchunu saying they would allow the process to unfold. She gave the assurance that there would be no interference during the process.
Cogta spokesperson Lennox Mabaso said divulging the source of the complaints could jeopardise the investigation.
“We want this to be speedily dealt with, but we haven’t set a time frame because we would like to have qualitative results. This is one way of ensuring that service delivery is made available to the people,” Mabaso said.
Opposition parties in the municipalities welcomed the investigation, saying they hoped people would be held accountable and the stolen money recovered.