While senior officials have faced the music for their alleged wrongdoing, the sword is also expected to fall on service providers who benefited from the looting of Mhlathuze Water.
According to an insider not authorised to speak to the media, several service providers are expected to face criminal prosecution for knowingly participating in the looting of funds.
This week, suspended CEO of the state-owned water board Mthokozisi Duze and CFO of the entity Babongile Mnyandu appeared at the Durban Commercial Crimes Court to face charges relating to a multi-million rand fraud.
They appeared with director-general at the KZN Office of the Premier, Dr Nonhlanhla
Mkhize, lawyer Sthembelo Mhlanga, Simphiwe Mabaso and employee Thabiso Khumalo.
“The forensic report recommended, among other things, that the board should consider instituting fraud, theft and forgery cases to the SAPS Anti- Corruption Task Team.”
The source further said one of the service providers, an accounting firm that benefited in the institutionalised looting, had earlier been charged with a tax-related offence but was given a lucrative contract by the entity. The accounting firm in question also did not have BBBEEE status.
The investigation conducted by Leo Sanders of the Forensic Investigation, Risk Advisory and Litigation Support concluded that about R37-million was lost.
The probe emanated from a whistleblower who said senior executives had a questionable relationship with a service provider known as Mhlanga Attorneys. Among the claims was that for over two years, the
executives had colluded to approve invoices from the service provider without following supply chain management procedures.
Asked how many service providers had benefited from the corruption and how the institution planned to recoup the lost funds, Mhlathuze Water spokesperson Siyabonga Maphumulo said: “Mhlathuze Water respects the court process currently underway, which involves some of its senior
members. Out of respect for this process, we would like not to comment on the issue until such time the court process has been concluded.”
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