IFP Corruption Reports on Umkhanyakude, Ethekwini, Mandeni and Zululand Municipalities

On 1 October Mbongeleni Joshua Mazibuko, IFP Deputy National Spokesperson chaired a press conference at the IFP Head Office in Durban to reveal the IFP’s allegation sof corruption in the Umkhanyakude, Ethekwini, Mandeni and Zululand Municipalities.

Mazibuko said; “We have convened this news conference because we are mindful of the responsibility which history has placed on our shoulders as the IFP, to act as watchdogs on behalf of all South Africans and future generations. We have very disturbing reports which – if they are true – point to the fact that there is a deep rot in our Province. These reports implicate 5 Municipalities and they are as follows:

1. UMKHANYAKUDE MUNICIPALITY:

• This Municipality’s Municipal Manager, Mr PS Gwacela, who is reported to have been relieved of his duties, spent about R7, 9m purchasing 7 Water Tankers; yet these tankers have never been used. He spent R70 000 in registration fees and R30 000 for number plates, despite that the convention is that the registration and purchase of number plates becomes the responsibility of the service provider. We gather that the trucks have now been towed back to Tata Richards Bay
• One other very serious allegation is that “the service providers of water tankers are being paid by the municipality in collusion with some staff members within the municipality for services that they have never performed.”
• The ex-Municipal Manager (Gwacela) authorised upfront payments to a company which was supposed to supply the water pipes. He did this despite that the MFMA does not allow this. When asked why he went against the MFMA he cited pressure from some councillors. However, the councillors denied any knowledge of that transaction.
• A number of other companies were paid in advance, and no written contracts were entered into with them.
• A certain Mr Zenzo Masuku’s Consulting firm – Bonakude Consulting – was appointed without competitive bidding and the Municipality ended up double-paying Masuku as the Chief Financial Officer and for consulting services. It is further alleged that Masuku is still with the Municipality despite the new Chief Financial Officer having been appointed.
• Further, it is alleged that Masuku has worked in the following Municipalities, all of which have allegedly experienced financial mismanagement during his tenure: – Nkandla, uMhlabuyalingana, Big Five False Bay, Abaqulusi and Zululand District
• Another consulting company called Minathlou Consulting was appointed without competitive bidding
• On top of all these allegations is the Final Management Report of the Auditor-General dated 30 June 2012 which lists 11 “contracts (which) were awarded without following the competitive bidding process.”
• This Municipality is also shown to have failed to spend the totality of the Municipal Infrastructure Grant which was earmarked for tackling the  water shortage problem in that district. They now run the risk of forfeiting about R120m of MIG Fund. This, despite the fact that multitudes of the residents of the district do not have access to clean water.   We are informed that these issues were reported to COGTA.

2. ETHEKWINI MUNICIPALITY:

• There is a company known as Enforce Guarding (PTY) LTD which was awarded a contract by eThekwini Municipality without proper processes having been followed. This company is also alleged to be owned by COGTA MEC’s fiancé.

3. MANDENI MUNICIPALITY:

• In 2009, Mandeni Municipality did not renew the contract of Globe Tech Security Company and instead brought in Enforce Security Company. What made that move suspicious was that, whereas Globe Tech Security Company was paid R60 000 per month, Enforce Security Company’s payment was about 4 times more – about R260 000 per month; this despite that the new company is alleged not to have had enough necessary resources to execute its mandate. This security company is alleged to be the same company which was awarded a contract by eThekwini Municipality

4. ZULULAND MUNICIPALITY:

• On two occasions, Globe Tech Security Company won a tender process to provide security services in the Zululand District Municipality and on both occasions the Mayor, HW Mrs VZ KaMagwaza Msibi overturned the due process and she insisted that she wanted a company called ZKZ Security, owned by Inkosi Zungu to be awarded that tender. In fact the same fate befell Globe Tech Security when the NFP took over Ntambanana Municipality

In calling for Public Protector’s intervention the IFP pointed out that the above are serious allegations that have not yet proven to be true.

The IFP confirmed that they had written to the Public Protector and forwarded documents in their possession as well as any other relevant information so that her Office will take the matter forward.