Shock as companies probed in R208 million eThewkini DSW tender scandal have contracts renewed

The eThewkini Municipality has renewed the multi-million rand contracts of companies belonging to four people who were arrested - alongside Mayor Zandile Gumede - in connection to a controversial R208 million DSW tender.

The city's executive committee members were at pains on Tuesday to justify the manner in which the renewal happened, with the city’s chief financial officer Krish Kumar indicating that the time factor should be considered. A monthly report on awards made by the city for the month of May 2019 indicates that Ikusasalethu Mthalane Trading, Ilanga Lamahlase Projects, Elshaddai Holding Group and Uzuzinikela Trading 31 cc’s contracts were renewed.

The companies were contracted for the rehabilitation of tennis court and fencing in Verulam and other expanded public works programmes. In late April two high-ranking eThekwini Municipality officials and seven businessmen were arrested by the Hawks following an ongoing Hawks investigations on alleged tender rigging, fraud, corruption, racketeering and money laundering charges.

The Durban Solid Waste tender ran from 2016 until last year. The contractors are alleged to have claimed millions of rands even before their commencement to render services. The Democratic Alliance questioned how the contracts could have been extended despite the full knowledge that the four companies were implicated in fraudulent activities in the city. At this stage, it is not clear how many more tenders and at what value do these companies have in the city.

Last month, eThekwini mayor Gumede’s was fingered for her alleged role in a “dirty” R208million Durban Solid Waste after damning details emerged in the Durban Specialised Commercial Crimes Court. Gumede was arrested by the Hawks appeared in the dock along with her co-accused, municipal councillor Mondli Mthembu and contractor Craig Ponnan. She is currently on a 30 day leave of absence from her mayorship. 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 R208 million contract.

In an affidavit which was read out in cour 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”. The story is developing.