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Former KZN Treasury head convicted of fraud, corruption and money laundering

National Prosecuting Authority provincial spokesperson Natasha Ramkisson-Kara said Dumisani Sipho Derrick Shabalala’s conviction relates to his receipt of R1.5 million from Intaka Investments for the acquisition of Wataka water purification plants valued at R44 million.

The Durban High Court is sitting at the Magistrate’s Court building. Picture: African News Agency (ANA) Archives

Published Jun 16, 2022

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Durban - The former head of the KwaZulu-Natal Provincial Treasury was convicted of fraud, corruption, money laundering and contravention of the Public Finance Management Act in the Durban High Court on Tuesday.

National Prosecuting Authority (NPA) provincial spokesperson Natasha Ramkisson-Kara said Dumisani Sipho Derrick Shabalala’s conviction relates to his receipt of R1.5 million from Intaka Investments for the acquisition of Wataka water purification plants valued at R44 million.

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She said the offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi and the company Intaka Investments.

“Shabalala then travelled to Brazil to view the purification equipment. On his return to South Africa, he wrote to then MEC Dr Zweli Mkhize, recommending that money be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka. The process culminated in the awarding of a contract for 22 ”Wataka plants“. Shabalala was the chairperson of the procurement committee that awarded the contract.

Shabalala, who is out on bail, will be back in court on September 5 for sentencing proceedings.

Ramkisson-Kara said the related matter of the State vs Savoi and others will be back in court on August 12.

In that matter, an application has been brought for a permanent stay of prosecution.

“The NPA welcomes this outcome and it reflects that even though it may appear that the wheels of justice turn very slowly in such cases of corruption, they do actually turn,” Ramkisson-Kara said of the conviction.

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DurbanCrime and courts

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