EX-KZN Treasury head jailed
FORMER Kwazulu-natal head of Treasury Dumisani Sipho Derrick Shabalala has been sentenced to 15 years’ imprisonment.
The Pietermaritzburg High Court this week sentenced Shabalala following his conviction on fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA) charges earlier this month.
His conviction relates to his receipt of R1.5 million from Intaka Investments, for the acquisition of Wataka water purification plants valued at R44m.
According to the reports, the offence occurred between 2004 and 2007, when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi and the company Intaka Investments.
Shabalala travelled to Brazil to view the purification equipment.
On his return to South Africa, he wrote to then-mec of finance and economic development Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka.
The process culminated in the awarding of a contract for 22 Wataka plants.
Shabalala was the chairperson the procurement committee that awarded the contract.
According to the National Prosecuting Authority (NPA), Shabalala’s conviction on the contravention of the PFMA in a high court reflects the pointed focus on holding government officials accountable for corruption, using this piece of legislation.
Natasha Ramkisson-kara, provincial NPA spokesperson said Shabalala was sentenced to 15 years’ imprisonment for fraud, 15 years’ imprisonment for corruption, 10 years’ imprisonment for money laundering and five years’ imprisonment for contravening the PFMA.
“The sentences will run concurrently.
“His bail was extended to September
13 when the court will hear his application for leave to appeal.
“The related matter of State vs Savoi and others is remanded until November 14, 2022, when an application for a permanent stay of prosecution will be heard,” she said.
KZN director of public prosecutions advocate Elaine Zungu lauded the work done by the prosecution and investigating teams.
“This sentence indicates that even though the wheels of justice may turn slowly in such complex cases of corruption, they do turn.
“The NPA will continue with its mandate of rooting out corruption, especially in the government sector,” said Zungu.
Maggie Govender, standing committee on public accounts (Scopa) chairperson, welcomed Shabalala’s sentencing.
“As Scopa we have consistently called for consequence management where public servants have not adhered to the law or have abused the public purse,” Govender said.
“In light of this and in light of the law following its course, Scopa welcomes the imposing of sanctions on the former head of the Provincial Treasury.
“Scopa reiterates its call for consequence management to be effected against all public officials who abuse public resources,” said Govender.