The Mthatha Specialised Commercial Crimes Court on Thursday granted bail to former Alfred Nzo district municipality senior officials and a businessman for their part in the crimes committed in 2014.
The officials and the businessman are implicated in corruption involving R38-million.
Luxolo Tyali, regional spokesperson for the National Prosecuting Authority, said: “Alfred Nzo district municipality former chief financial officer Luyolo Fokazi, 49, former acting municipal manager Xolani Masiza, 53, former supply chain management assistant manager Zuko Mani, 44, former supply chain manager Paul Mahlasela, 47, are all alleged to have issued the billing tender to Xolani Bomela’s Chumani Solutions in contravention of the Municipal Financial Management Act [MFMA] and treasury regulations.”
Tyali said on November 20 2014, the municipality had invited professional service providers to bid for the installation of a billing solution while there was already an existing service provider for the job at the municipality.
“Only tow bidders responded to the advert by the 19 December 2014 deadline, against the MFMA stipulation that the closing date for the submission of bids may not be less than 30 days in cases of transactions over R10-million,” said Tyali.
Investigations later revealed that gratification amounts up to R330 000 were paid from Chumani Solutions to some of the four municipal officials after the tender was awarded.
“The officials were members of the bid evaluation committee and bid adjudication committee that sat on the same closing date of the tender and awarded it to Sabata Municipal Solution, to which Chumani Solutions was subcontracted. The tender was awarded even though the committees did not quorate”.
The court postponed the matter to May 9 for the state to submit docket contents to the defence, and for the trial date to set. The suspects were released on R10 000 bail.
Speaking to Sunday World on Friday, Alfred Nzo district municipality spokesperson Lixolile Petela said the municipality has nothing to say on the matter.
“Like you have just said, these are former employees of the institution and the case is really old. All we can say is that the law must take its course, and all those who are found guilty should face the consequences of their actions,” said Petela.
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