Fraud suspect seeks plea deal with state

Former Msunduzi employee faces 52 counts of fraud and money-laundering

Fraud-accused former Msunduzi Municipality employee Andile Mkhize, who is facing 52 counts of fraud and money-laundering charges, is seeking to strike a plea deal with the state, the Pietermaritzburg Regional Court heard yesterday.

Mkhize, who worked as a salary officer in the municipality’s finance department, is out on bail following his arrest last year.

For counts one to 51, the state has accused Mkhize of unlawfully and falsely facilitating payment for a ward committee member for attending meetings. He also allegedly falsely facilitated payments for Expanded Public Works Programme (EPWP) employees for doing work for the municipality.

These offences were committed between 2018 and 2020.

“This induced [exposed] the municipality to loss and prejudice, and or potential loss to the municipality.

“Whereas in truth, the accused when he so gave out and pretended as aforesaid, well knew that the payments were not due to the officials and would be paid or potentially paid into his private or another bank account, and thus committed the crime of fraud,” reads the charge sheet.

The city reportedly lost R337 578 in payments for ward committee meetings and over R500 000 for the EPWP payments.

Count 52 relates to money-laundering, in which Mkhize is accused of contravening section 4(a) and or (b), read with sections 1, 4(i), 4(ii), and 8 of the Prevention of Organised Crime Act of 1998, accumulating over R200 000 in the process.

According to the charge sheet, Mkhize had unrestricted access to all the documents, processes, computers, and computer programmes for the proper functioning of the finance section.

At all times, he had access to the personal information of all staff in the salary system, including their bank account numbers.

The state argued that between October 2018 to September 19, 2020, Mkhize knowingly and unlawfully amassed R248 597,49.

He should have reasonably known that the money was, or formed part of, the proceeds of unlawful activities, but he nevertheless wrongfully and unlawfully benefitted from the transactions.

“Section 8(1) provides that any person convicted of any offense contemplated in section 4, 5 or 6 shall be liable for a fine not exceeding R100million, or to imprisonment not exceeding 30 years,” reads the document.

State prosecutor Johann Senekal submitted that Mkhize sought to negotiate a plea deal with the state, and the case was adjourned to May 7 for the deliberations on the deal.

“The matter will now be dealt with and a decision taken will be based on the conditions of the plea,” said Senekal.

Mkhize remains out on bail. Msunduzi spokesperson Ntobeko

Mkhize said Andile Mkhize was currently under suspension and that other officials were implicated in similar offenses, which were all uncovered by the city’s internal audit unit.

“Two officials have since resigned and one appeared in court and his case is pending.

“Another official who resigned has signed a settlement agreement for the amount she defrauded to be deducted from her pension benefits.

“[Andile Mkhize] would channel salaries from the municipality’s purse into accounts to which he has access.

“Msunduzi is fully committed to ensuring a fraud-and corrupt-free municipality,” said Mkhize, without giving further details on the other internal cases.