SIU mulls probing R1m KZN ‘ghost campaign’
● The Special Investigating Unit (SIU) is considering whether to investigate allegations that top KwaZulu-Natal government officials colluded with a private company to siphon more than R1m from the state under the guise of a consumer awareness campaign.
The event was meant to take place in KwaMashu two months ago, but never happened.
The DA submitted evidence to the SIU this week which suggested that almost R1.5m was paid by the province’s department of economic development & environmental affairs to a company whose name is known to Sunday Times.
SIU spokesperson Kaizer Kganyago confirmed the DA had made a request to probe various fraud and corruption claims. “The DA came with a box of information on Tuesday, and it is now at evaluation stage. The SIU is assessing whether there is merit in the allegations, and whether it is in line with our [investigating] mandate,” Kganyago said.
The DA’s allegations include that payment was made to “a certain service provider for an event that never took place”.
This week, the Sunday Times investigated the claim. Information obtained from sources in the department indicates that almost R1.5m was paid by the department to a service provider for a consumer awareness education and outreach event meant to take place at a KwaMashu sports ground.
Sources allege senior officials in the department colluded with a service provider, Plan B Trading, to siphon more than R1m out of the department’s coffers, allegedly under the direction of MEC Siboniso Duma, to fund a KwaZulu-Natal ANC Women’s League (ANCWL) conference.
Invoices seen by the Sunday Times indicate an order was issued on August 24 to Plan B Trading for it to provide services for an event on August 25.
However, while there is no evidence such a function ever took place, a week later the department made full payment to the service provider.
A Facebook account recording all events held by the department shows that on August 25 the department held a function in eDumbe in northern KwaZulu-Natal. No other event took place on that day.
A representative of the company refused to comment on the allegations when he was approached by the Sunday Times. “Blue lies and fabrication do not warrant my response,” he said.
Sources in the department also claim the company was approached by two senior officials of the department claiming to have been sent by Duma, who is also the provincial ANC chair, to financially “assist with funding for the ANCWL conference”.
This meeting is said to have taken place during the week of the conference. The money was meant to have been recouped through a tender process, and 19 days later the company invoiced the department.
The department’s spokesperson, Ndabezinhle Sibiya, waived the department and Duma’s right of reply.
“Respectfully, we have taken a decision not to entertain media enquiries based on fabricated documents pickpocketed by the DA leaders in KwaZulu-Natal.
“The burden of proof lies with the DA, not the department,” said Sibiya.