Confusion over Mhlathuze Water corruption report
THE office of the Minister of Water and Sanitation Senzo Mchunu has sparked confusion by denying the receipt of a whistle-blower’s report detailing allegations of corruption that implicates the chairperson of Mhlathuze Water, Thabi Shange.
This was despite Shange’s confirmation that the report was handled by the minister as a shareholder of the state-owned water entity.
The Sunday Tribune reported last week that Shange was implicated in the whistle-blower report sent to the minister and the board, for allegedly abusing her authority.
She was alleged to have instructed service providers to pay for her private needs, including a lavish birthday party for her son. The report detailed the allegations that Shange instructed Zuma and Partners law firm to sponsor and pay for her son’s lavish birthday party at Jozini Tiger Lodge.
The law firm had a contract with Mhlathuze Water, providing legal services at the time. It further alleged that the payment was “corrupt” as she neither disclosed it to the board nor declared it in accordance with the ethical standards set by Mhlathuze Water on the prevention of fraud and corruption.
The report further accused Shange of using her influence to get another law firm, Mhlanga Incorporated, contracted to Mhlathuze Water to represent her close friend for free in a labour matter.
While Zuma and partners denied the allegations, Mhlanga Incorprated admitted that it was instructed to represent Shange’s friend for free in a labour dispute.
The report revealed that she had instructed the firm to represent her friend who had a disciplinary hearing instituted by King Cetshwayo Municipality.
She apparently did clandestinely, with no full disclosure of the benefit she received as the chairperson to the board, which she owes a duty to disclose, said the report.
The Sunday Tribune could not get a response from Mchunu’s office, which was unable to respond last week, but
officials said that they would check by Monday if he had received the report and promised to take action.
However, despite this newspaper having resent the whistle-blower report this week, Kamogelo Mogotsi, Mchunu’s spokesperson denied receiving it.
The report was allegedly sent by the whistle-blower about three months ago to the entire board members of Mhlathuze Water and directly to Mchunu.
The board confirmed receipt of the report and that they and the minister were dealing with it.
“I can confirm that we have not seen the report you are referring to. Please help us (with the details of) who and when the report was sent, then I
will be able to respond,” said Mogotsi.
Asked about the allegations, Shange said: “On the matter of the whistle-blower, the source and circumstances surrounding it are being handled at a shareholder (minister) level as it is not within the jurisdiction of the board.”
The Richards Bay-based water entity, responsible for water supply in northern parts of Kwazulu-natal, has suspended its CEO, Mthokozisi Duze, and its chief financial officer, Babongile Mnyandu.
They were suspended in December for undisclosed allegations.
Quizzed about their return, Shange said the investigation was under way and the report would be out as soon as it wa s completed.