Three eThekwini Municipality officials have been suspended after they were linked to irregular and fraudulent transactions totalling R17 million.
The transactions relate to three housing projects in Umlazi T-Section, eMaphephetheni and in KwaMakhutha. The officials were suspended after the municipality, through its internal control processes, last month uncovered an elaborate fraudulent scheme in which R17 million was paid to two companies. Six more officials have been issued with letters of intent to suspend, said eThekwini Municipality spokesperson, Gugu Sisilana.
Details of how the payments were processed are part of an ongoing investigation by the city’s Integrity and Investigations Unit, she said.
Ms Sisilana added that contrary to a media report published on October 13, the amount involved in the scheme is R17 million, not R32 million. “The money also did not ‘disappear’ or go ‘missing’ as the article implies but it was fraudulently transferred,” she said.
In addition, Ms Sisilana said the three housing projects linked to the fraudulent scheme have nothing to do with resettling flood victims, but are ordinary projects of the municipality’s Human Settlements Unit.
“The three housing projects are continuing, however, there will be a budget shortfall in the current financial year. This means their estimated completion will now be during the 2024/25 financial year,” said Ms Sisilana.
eThekwini mayor Mxolisi Kaunda said the municipality remains committed to rooting out fraud and corruption.
“This is done through continuous tightening of internal control processes and through taking harsh action against officials implicated in wrongdoing,” said Mr Kaunda.
