The Special Investigating Unit (SIU) has welcomed the arrest of nine individuals and entities linked to the alleged irregular R75 million Alfred Nzo District Municipality (ANDM) water and sanitation fleet tender.
The nine appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court in the Eastern Cape on Monday on charges of fraud, corruption, money laundering and contravention of the Municipal Finance Management Act (MFMA). They were granted R10 000 bail.
“[An] SIU investigation revealed that the ANDM paid R75 million to Kwane Capital for trucks, water tankers, and jet vacuum tankers without budget approval and in contravention of Regulation 32 of the Municipal Supply Chain Management Regulations.
“Kwane Capital misrepresented ownership of the vehicles unlawfully, used the name of Avis Fleet and induced the municipality into contracts that were invalid and unlawful. Fraudulent licensing and vehicle examination were also uncovered, with roadworthy certificates issued despite GPS data showing the vehicles never attended testing stations,” the unit said in a statement.
The nine accused include:
• Mcebisi Rudolf Mlonzi, Director of Kwane Capital.
• Bambangazibini Tabata, Kwane Capital employee.
• Former ANDM officials Xolani Masiza, Paul Mahlasela, and Zuko Mani.
• Former Avis and Barloworld employees Clive Else and Shawn Govender
• Monalitho Muba and Xola Bomela, together with their company Chumani Water Solutions.
It is estimated that the municipality suffered an actual or potential financial loss of some R60.7 million due to “overcharging and excessive profit margins”.
“The SIU has instituted a civil action in the Special Tribunal to review and set aside the contract and to recover losses suffered by the municipality.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU refers any evidence of criminal conduct uncovered during its investigation to the NPA for further action.
“The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered,” the SIU said. – SAnews.gov.za
