Former KZN treasury head’s bid to stay out of prison fails

The Pietermaritzburg High Court has dismissed former KwaZulu-Natal provincial treasury head Dumisani Shabalala’s application to appeal his conviction and sentence.

Last week, Shabalala was sentenced to 15 years imprisonment each for fraud and corruption, 10 years for money-laundering, and five years for contravention of the Public Finance Management Act.

The sentences will run concurrently, effectively handing him a 15-year prison sentence.

Natasha Ramkisson-Kara, the regional spokesperson for the National Prosecuting Authority (NPA), said Shabalala was convicted for receiving an R1.5-million kickback from Intaka Investments for the government’s acquisition of Wataka water purification plants valued at about R44-million.

“The offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi and the company, Intaka Investments,” said Ramkisson-Kara.

“Shabalala travelled to Brazil to view the purification equipment. On his return … he wrote to the then MEC [for finance and economic development] Dr Zweli Mkhize recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka.”

Ramkisson-Kara added that the provincial director of public prosecutions, advocate Elaine Zungu, welcomed the court’s dismissal for leave to appeal.

Zungu said the dismissal of Shabalala’s application is evidence that KwaZulu-Natal is making strides in its fight against corruption, adding that efforts will continue to root out corruption, especially within the government sector.

“We commend the stellar work done by the prosecution team and the investigation team from the Hawks,” said Zungu.

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