Last week, on Friday October 20 the DA opened a criminal case against eThekwini Municipality City Manager Musa Mbhele, Chief Financial Officer (CFO) Dr Sandile Mnguni and Head of Housing Lawrence Pato in terms of section 34 (1) of the prevention and combating of corrupt Activities Act, 12 of 2004 for allegedly failing to report the theft of R17 million.
However, the Municipality have refuted the claim, citing the SAPS case number of the alleged theft.
The money had been set aside to complete three housing projects in uMlazi, Emaphephetheni, and KwaMakhutha. According to the municipality the officials have been suspended after investigations confirmed that two companies unlawfully benefitted from the money, said Councillor Thabani Mthethwa, DA eThekwini Caucus Leader.
“The city manager, CFO and head of housing, are the officers responsible for reporting offences in line with section 34(1) of the prevention and combating of corrupt activities act as they are persons who hold positions of authority and are fully aware of the involvement of those who have committed offences,” said Mr Mthethwa. “After we made verbal enquiries, we were informed that no criminal charges have been opened against the implicated officials. It is for this reason that we have opened a criminal case against the three.”
Mr Mthetwa said the DA is of the view that Mr Mbhele, Dr Mnguni and Mr Pato are accessories to crime and “ANC corruption enablers”. They have shown the lengths they are willing to go to protect the interests of the ANC and its cadres, he added.
“These funds were meant to help rebuild homes of flood victims,” Mr Mthetwa said. “Due to the irregular and alleged fraudulent transactions, there will also be a budget shortfall in the current financial year.”
eThekwini Municipality issued a statement noting the criminal case.
“The Municipality refutes such claims that instances of fraudulent payments went unreported. The Municipality can confirm that the incident was reported on September 15, 2023, at the SAPS Durban Central Station and a case was opened, reference CAS 636/9/2023,” said the statement.
Several employees have been placed on precautionary suspension, while the City Integrity and Investigations Unit and SAPS are busy with the relevant investigations. Internal controls in respect to cessions have been improved to prevent re-occurrence, the City said.
