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KZN implicated in R16 billion DWS fraud and corruption

Minister of Human Settlements, Water and Sanitation Lindiwe Sisulu has appointed advocate Terry Motau to lead a team of lawyers to review all fraud, corruption and irregular expenditure reports at the Department of Water and Sanitation (DWS) and to ensure all recommendations are implemented.

Human Settlements spokesperson, McIntosh Polela, confirmed that the investigation included a project in KwaZulu-Natal managed by a water board based in the province. Polela said they could not divulge the merits of the investigation yet. “We prefer not to elaborate on the scope of work until the review by advocate Motau is complete,” he said.

He added that R16 billion was the total sum of the fraud and corruption activities from projects nationally. He could not disclose the amount for which KZN was being investigated. Auditor-General Kimi Makwetu revealed damning findings against the beleaguered DWS and its entities in his 2018/19 report which details the shambolic state of finances.

Makwetu’s office revealed to Parliament in a virtual meeting that the department and its Water Trading Entity recorded material irregularities from 12 completed audits. These have resulted in R2.81 billion in financial losses that included R2.2bn spent on the appointment of a supplier that did not deliver services and R438 million on the overpricing of goods and services.

Sisulu indicated that there was a lack of consequence management in the department and as a result, many officials implicated in fraud and corruption remained at work or were suspended with pay. “I’ve directed advocate Motau and a team he is going to be working with that * want all reports on fraud, corruption and irregular expenditure of the department and all water boards to be reviewed and all recommendations implemented. Officials and service providers involved in corruption must face the consequences,” Sisulu said.

She added that priority must be given to all allegations facing water boards and senior managers of the DWS. Sisulu said she had received a report that projects totalling more than R16bn had been issued irregularly, “including blanket corruption and fraud by officials, to an extent of awarding tenders to themselves and close relatives”. This will not happen on my watch,” she said.

Last month, an investigation was launched by the KZN premier’s office after it emerged that the KZN Department of Social Development had procured 48000 blankets to the value of R22m for homeless people. At the time the department said it did not go out on tender because Covid-19 was declared a disaster and the procurement was an emergency, in line with national Treasury regulations.

It said it was irresponsible of anyone to link the purchases to corruption. However, Premier Sihle Zikalala announced an investigation after it emerged the prices for blankets were allegedly inflated to line the pockets of business people close to senior officials. It is unclear if this is the “blanket corruption and fraud by officials” Sisulu referred to. She is expected to provide further details at a media briefing today.

Motau has been involved in a number of high-profile investigations, including the “Great Bank Heist”, which focused on corruption and looting at VBS Bank in Limpopo. “We believe advocate Motau has the experience and will lead a team of professionals to make sure in the water sector there is consequence management and value for money,” Sisulu said.

Source: www.iol.co.za
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