KZN Cogta MEC to take action against municipality official over R10 million extortion claims

KwaZulu-Natal Cooperative Governance and Traditional Affairs (CoGTA) MEC Reverend Thulasizwe Buthelezi is expected to act against a senior Umkhanyakude official who has been implicated in extortion allegations.

A report, which has been compiled by the disputed municipality administrator, Bamba Ndwandwe, directly implicated the municipality’s top official and a senior ANC party regional leader, whom the report accused of extorting R10 million from the service provider.

The officials could not be named as they may face criminal charges, as the report recommended.

The report recommended that the MEC take action, as well as report the matter to the police. The agreement was that the service provider pays 10% of the total amount of the work to both the official and the leader.

The report further stated that between January and November 2022, the service provider distributed 14 batches of cash to the regional leader. Each time the money was delivered, it was between R500,000 and R1.7 million.

According to the report, the company was awarded a R153 million tender in the 2018/2019 financial year to build the Nondabuya water scheme in Jozini.

However, the project collapsed in 2022 after the service provider complained of escalating costs as a result of the bribe he had to pay monthly to the official and the ANC leader.

The municipality had already paid R128 million when the project collapsed.

The report further revealed that the company would add 10% when it invoices the municipality so that it does not incur costs from the money it charged for the project.

However, the agreement ended up affecting its profit because the municipality refused to alter the project scope and tender price to cover the 10% bribe when project costs increased due to market rates for building materials.

Besides extortion, the report also suggested that the company’s appointment was irregular since there was no bid for the work. The company was handpicked from the panel of engineering companies within the municipality.

The report also revealed that although the company was appointed in 2018, it actually started work in 2022, and the project collapsed the following year.

In the report, the company director stated that he was approached by the said official, who told him that for him to get the job, he must agree to pay 10% of every payment he received for the work, which the service provider agreed to.

“Recommendations are that the MEC issue a directive on the appropriate actions on the report or part of the report. The report is submitted to SAPS in terms of applicable statutory provisions on such matters as contained in the report (Section 34 of PCCA). The report is submitted to SAPS for investigation by the police for appropriate action,” read the report.

CoGTA spokesperson Senzo Mzila confirmed the receipt of the report. It was also copied to the Mkhuze police station commander.

However, provincial spokesperson Colonel Robert Netshiunda said cases do not get reported via a letter, but to a police station.

The municipality and the provincial government are currently in a legal standoff over the latter’s decision to place the municipality under Section 139 (b), which required the CoGTA MEC to appoint an administrator.

With the ANC backing, the municipality defied the Cabinet decision and took the matter to court. 

The provincial ANC spokesperson Fanle Sibisi had not yet responded to questions sent to him.

willem.phungula@inl.co.za.