‘No racial motive for law firm probe’
UMNGENI Local Municipality mayor Chris Pappas says the investigation into the appointment of and alleged over-billing by law firm Mhlanga Incorporated Attorneys was solely driven by the “huge legal bill” and was not racially related.
The municipality issued a statement last week stating its concerns with Mhlanga Inc following an executive committee meeting and that the investigation was in line with its stance on good financial management.
The statement read: “The executive committee of the uMngeni Municipality has started an investigation into the appointment (of) and costs associated with Mhlanga Incorporated.
“The uMngeni Municipality was saddled with a huge legal bill in the last financial year (2021/2022) after Mhlanga Inc was appointed as the independent investigator to provide advice to council on the corruption that was uncovered by the (Special Investigating Unit) as it relates to Covid-19 expenditure.
“The preliminary investigation has revealed that Mhlanga Inc has seriously overcharged the municipality and has taken advantage of a timebound and serious matter that was faced by the municipality at the time.”
In response to the statement, a representative of Mhlanga Inc told The Mercury yesterday that the allegations made by the municipality made no sense, adding that each law firm bills differently according to its experience and expertise.
The firm also questioned why the irregularities were raised after payments had been made.
In an interview with IOL, the firm’s owner, Sthembelo Mhlanga, said that black lawyers deserved to be paid like their white peers.
“Black lawyers deserve to be paid properly for the quality work they produce, just like their white peers.”
Responding to Mhlanga’s insinuations, Pappas said, “the investigation is not racially related. The investigation is driven by a huge legal bill”.
Pappas added that the investigation was also not as a result of the firm’s ongoing legal matter in connection with the Mhlathuze Water fraud case.
“The investigation was not sparked by the arrests. It was something that we had started in the background before the arrest.”
Mhlanga was late last month arrested together with suspended Mhlathuze Water CEO Mthokozisi Duze, director-general in the Office of the KwaZulu-Natal Premier Dr Nonhlanhla Mkhize, and three others for alleged corruption at Mhlathuze Water.
He is currently out on R250 000 bail.
The uMngeni mayor said he couldn’t reveal how exorbitant the legal bills were.
“The meeting took place in-committee. I cannot give out more information at this stage. The full findings will be presented once the exco has completed its work and made commendations.
“Introductory evidence indicates that uMngeni Municipality could have been over-billed by up to three times as much as the industry-accepted rates on a number of line items.”