Investigator details mayor’s alleged role in DSW contract

Ethekwini mayor Zandile Gumede’s alleged role in a “dirty” R208million Durban Solid Waste (DSW) contract was revealed in the Durban Specialised Commercial Crimes Court yesterday.

Gumede appeared in the dock along with her co-accused, municipal councillor Mondli Mthembu and contractor Craig Ponnan. The three are charged with fraud, corruption, contravention of the Municipal Finance Management Act and money laundering.

Their court appearance comes after the city’s supply chain deputy manager Sandile Ngcobo, DSW deputy head Robert Abbu and service providers Hlenga Sibisi, Mzwandile Dludla, Sinthamone Ponnan, Sithulele Mkhize, Bongani Dlomo, Prabagaram Pariah and Khoboso Dlomo were arrested and charged two weeks ago on allegations of fraud and corruption in relation to the R208m contract.

In an affidavit which was read out in court yesterday, investigating officer Lieutenant-Colonel Frans Mphaki alleged Mthembu and Gumede “consistently interfered in the operational functions and duties of employees at all levels of the administration of eThekwini by inducing employees to committing various unlawful acts in relation to this tender”.

He also alleged that Gumede influenced the appointment of senior personnel at the municipality’s supply chain management, legal, human resources and other units using her political status. Gumede and Mthembu are also accused of orchestrating and inciting a protest at City Hall last month where protesters called for the removal of the city manager Sipho Nzuza from office on the grounds that he refused to take orders from the mayor.

Mphaki said he was forced to expedite the arrests in the case due to the “high level” of intimidation of witnesses and interference in the case. He said he needed at least eight more months to complete the investigation into tender fraud in the city. According to his affidavit, Gumede and Mthembu played “a major role” in the alleged illegal awarding of the refuse collection contract to four suppliers namely Ilanga La Mahlase Projects, Uzuzinekele Trading, Omphile Thabang Projects and El Shaddai Holdings Groups.

The DSW tender ran from 2016 until last year. Mphaki said that collective evidence obtained indicated that the city’s Ngcobo, Abbu, Gumede and Mthembu, as well as the four suppliers, conspired regarding the contract. It is further alleged that the four suppliers, who were contracted, were not registered on the city’s supplier database at the time of their invitation of quotations, neither did they have the capacity and infrastructure to render such services.

Mphaki said that none of the four suppliers had a registered waste management company or premises and staff that were employed for this purpose. “Evidence obtained indicates that the four suppliers acted in concert to prejudice eThekwini and not in competition with one another,” he said. Mphaki said the head of the city’s Integrity and Investigations Unit highlighted political interference by Gumede and Mthembu on various occasions in seeking the evidence related to this case.

This was allegedly done through the Municipal Public Accounts Committee, Executive Committee as well as the Auditor-General of South Africa. All 12 accused will appear again on August 8.