Mail & Guardian

Court ruling for ‘captured’ water entity

Umgeni Water cannot suspend contract and SIU probes others linked to slain man’s companies

- Paddy Harper

The high court has halted attempts by Umgeni Water to suspend an allegedly unlawful R138-million contract with a company owned by informatio­n technology magnate Sibonelo Shinga, who was murdered in January.

Last month lawyers for MPS Strategic Solutions, one of several companies owned by Shinga that hold lucrative contracts with the water provision entity, secured an interim order preventing Umgeni Water from temporaril­y suspending the R141-million contract.

The contract was awarded early in 2020 during the term of former Umgeni Water chief executive, Thami Hlongwa, who resigned last October under a cloud of allegation­s of corruption involving Shinga’s companies, ahead of the tabling of a damning forensic audit.

MPS was last year paid R54-million for a three-month social facilitati­on project and R87-million for an eight-month security assessment, the first part of a four-phase, long-term contract.

In December, whistleblo­wers at Umgeni Water wrote to then water and sanitation minister Lindiwe Sisulu claiming that the entity had been “captured” by Shinga, who had paid for a lavish birthday for Hlongwa in Cape Town the year before.

They also wrote to the Special Investigat­ing Unit (SIU) about the contracts.

Shinga was shot dead on 26 January in an apparent assassinat­ion on the freeway, after attending a family funeral in Durban.

Hlongwa disappeare­d at about the same time, with colleagues and associates saying he had gone into hiding because he was afraid of being killed.

Police spokespers­on Colonel Thembeka Mbhele confirmed that no arrests had been made in connection with Shinga’s assassinat­ion. “The matter is still under investigat­ion.”

In June, Umgeni Water moved to suspend the MPS contracts temporaril­y, pending a forensic audit. The entity is also reviewing the IT contract held by Shinga’s other company, Raminet Technologi­es, which was ceded from the controvers­ial IT giant, EOH, in 2017.

Lawyers for MPS went to the high court in Pietermari­tzburg to interdict the suspension of the contracts and were granted an interim order. The matter was adjourned to 9 September.

Although neither of the two existing SIU proclamati­ons pertaining to IT and other contracts at Umgeni and other water entities covers the contracts awarded to MPS, they are on the investigat­ing unit’s radar.

SIU spokespers­on Kaizer Kganyago said the proclamati­on issued on 30 July focused on four contracts awarded to EOH Mthombo (Pty) Ltd totalling R474-million, but did not cover Raminet or MPS. Neither did the 2019 proclamati­on. But the SIU was assessing the allegation­s made by whistleblo­wers about the contracts, he added.

“I am informed that these allegation­s have been received by the SIU Kwazulu-natal and submitted to the business developmen­t team for developmen­t and escalation to the case assessment committee.”

Umgeni Water is also reportedly reviewing the IT contract awarded to Raminet. EOH has subsequent­ly blackliste­d Raminet as part of its attempt to clean up its image, tainted by allegation­s of state capture that emerged at the Zondo commission.

The water entity has also moved to implement a high court order setting aside a R220-million security contract with Reshebile Security and Aviation Services.

Last July, the court gave Umgeni 10 months to appoint a new service provider to replace Reshebile, which had “piggybacke­d” on the monthto-month contract awarded to its predecesso­r, Excellerat­e Security Services.

Umgeni Water’s communicat­ions head, Shami Harichunde­r, confirmed that a rule nisi had been granted in favour of MPS stopping the entity from temporaril­y suspending its contract.

Harichunde­r said the contract with Raminet Technologi­es “is presently under review”.

With regard to Reshebile, Harichunde­r said Umgeni Water had gone back to court for additional time to appoint a new security service provider and had been granted the extension.

A new service provider would be announced soon.

“In its ruling the high court allowed Umgeni Water 10 months to appoint a service provider. Reshebile Aviation and Protection Services was allowed to continue providing security services to Umgeni Water pending finalisati­on of the appointmen­t process,” Harichunde­r said.

“The process for appointmen­t of a service provider has been completed and is in line with the Public Finance Management Act, as it pertains to open, transparen­t, fair and competitiv­e bidding. An announceme­nt on the successful tenderer is imminent.”

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 ?? Photo: Delwyn Verasamy ?? Tender matters: Thami Hlongwa (above), the former chief executive of Umgeni Water, went into hiding after businessma­n Sibonelo Shinga was killed. Workers repair a reservoir (below).
Photo: Delwyn Verasamy Tender matters: Thami Hlongwa (above), the former chief executive of Umgeni Water, went into hiding after businessma­n Sibonelo Shinga was killed. Workers repair a reservoir (below).

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