Tender syndicate may get away with R100m scot-free
Cogta accused of failing to support criminal proceedings
A SYNDICATE, including high-ranking officials who allegedly helped themselves to more than R100 million from a Kwazulu-natal municipality’s coffers, through fraudulent and corrupt activities, could evade prosecution.
This was the assertion by Leo Saunders, the director of Integrity Forensic Solutions (IFS), a company that conducted a “deep forensic investigation” into the supply chain processes of the Amajuba District Municipality, in the northern part of the province.
The criminal matter against those implicated in the report produced by IFS was expected to reconvene in court this week, but Saunders said the matter could be withdrawn because there was no complainant.
Linda Afrika, Amajuba’s former acting municipal manager, was the complainant but was no longer employed by the entity.
Saunders claimed neither the municipal manager, Sipho Zwane, nor the Department of Co-operative Governance and Traditional Affairs (Cogta) supported the criminal proceedings.
“If the court cannot identify a lawful recipient to collect funds related to the court order, the matter can be dismissed at the next sitting this week,” said Saunders.
IFS and the municipality were also locked in a court battle over more than R1.1m allegedly owed to the company in respect of additional work done.
In court documents, the municipality claimed it had not authorised the additional work, which related to IFS assisting with the prosecution of those who allegedly committed fraudulent acts.
In response, Saunders claimed that the municipality was refusing because some of its current employees and senior officials were implicated.
IFS was hired in 2012 by Afrika. An interim report was compiled in 2013, which included some “serious findings”, and revealed how the syndicate “bled” municipal funds by having its representatives placed in various strategic positions in the municipality to facilitate the rigging of tenders.
After IFS produced its final report in July 2016, Afrika contracted the company to help with criminal proceedings against 160 people implicated in fraudulent activities.
The National Prosecuting Authority (NPA) and the Hawks also endorsed IFS’ role in the prosecution process.
The Hawks instructed IFS not to share the report with any other person or entity without their consent.
The prosecution process was supposed to start in September 2017 but didn’t gather momentum and was repeatedly adjourned because “there is no complainant in the matter”, said Saunders.
He claimed that Afrika was deliberately moved out of his position because their report implicated serving senior officials.
Saunders said Zwane eventually approved payment of the final instalment due to IFS in respect of the investigative work and the report produced, but was not prepared to pay for IFS’ involvement in the criminal proceedings.
He also accused Cogta of failing to do their duty and support the criminal proceedings when he approached them for assistance.
Cogta spokesperson Lennox Mabaso said it had seen only the draft report and could not act on a report that contained unsubstantiated allegations.
“The final report has never been presented to Cogta.
“It must be understood that Saunders concluded an agreement with the SAPS and the NPA to assist them with the prosecution and Cogta played no part, as there was no part for us to play until the final report is released to us.
“In the past, we have had attempts to extort money from the municipalities and Cogta. We have since become vigilant and asked difficult questions that annoyed others,” said Mabaso.