Bail denied for Duze
THE suspended Mhlathuze Water CEO Mthokozisi Duze was denied bail in the Durban Specialised Commercial Crimes Court yesterday.
He faces charges including fraud and corruption related to a 2018 Mhlathuze Water procurement project.
Duze appeared in court with two of his co-accused, Siphiwe Mabaso and Sthembelo Mhlanga, who were granted bail of R25 000 and R250 000 respectively.
Magistrate Garth Davis said Duze was unable to prove to the court in his application for bail that he would not interfere with the investigation.
The magistrate said he had a written bail ruling which contained the full reasons for his decision.
The court heard during the bail hearing that in 2018, Mhlathuze Water as a public entity had to appoint a panel of legal service providers to render services on an ad hoc basis over three years.
The State alleges that Duze and suspended chief financial officer Babongile Mnyandu colluded to have Mhlanga, Thabiso Khumalo and Mhlanga’s company (a law firm) appointed as part of this panel and to ensure that the latter were entitled to 80% of the work that needed to be done.
The State says the alleged fraud, estimated at R37 million, was uncovered during an internal audit.
It is further alleged that the accused enlisted the assistance of their remaining co-accused to interfere with a further investigation process that was then under way.
Therefore, in February this year the chairperson of the Mhlathuze Water board, Thabi Shange, was visited by Mabaso, who pretended to be a member of Military Intelligence in Durban.
He claimed the unit was investigating all boards of public and stateowned entities and questioned her about the forensic audit.
It has been proven that Mabaso is not an employee of the intelligence unit.
The other accused in the matter, Dr Nonhlanhla Mkhize, the director-general in the premier’s office, was released on bail last Friday. Mnyandu and Khumalo were the first to be released on bail last Tuesday. Bail for Mnyandu was set at R60 000 with a condition that she doesn’t contact any witnesses or the board of directors at Mhlathuze.
Mkhize, Mabaso, Mhlanga and Duze are charged with intimidation, defeating or obstructing the course of justice and fraud, while Duze, Mhlanga, Khumalo and Mnyandu were charged with fraud and corruption.
The case was adjourned to December 6.