MunicipalNews

‘Unbelievable!’ City of Durban renews contracts to companies fingered in fraud probe

All four contractors were arrested either prior or alongside Mayor Zandile Gumede and Councillor Mondli Mthembu.

THE Democratic Alliance in eThekwini has slammed the city’s decision to extend the contracts for refuse collection of four DSW contractors who were recently arrested in connection with a fraud and corruption investigation by the Hawks, amounting to more than R200 million.

In a media release on Tuesday afternoon, DA caucus leader, Nicole Graham said she was flabbergasted that the contracts had been renewed.

“All four contractors were arrested either prior or alongside Mayor Zandile Gumede and Councillor Mondli Mthembu,” she said.

Graham said the four companies, Ilanga Lamahlase Projects (Pty) Ltd, El Shaddai Holding Group cc, Omphile Thabani Projects and Uzuzinikela Trading 31 cc are owned by Hlenga Sibisi, Craig Ponnan, Bongani Dlomo and Sithulele Mkhize.

All four companies are closely linked to the Mayor, with allegations that Gumede and her allies hand-picked their chosen contractors in contravention of local government, supply chain and constitutional law.

“The fact that the municipality has extended these contracts, as opposed to cancelling them immediately, shows that there is no political will to root out corruption and fraud in the city,” she said.

ALSO READ: Durban Mayor Gumede released on R50 000 bail

Graham said at Tuesday’s meeting of the Executive Committee, Chief Financial Officer Kirsh Kumar, in justifying the extending of the contracts to the four contractors, pointed out that the arrests were only recently made, but claimed that the investigations were concluded in December 2018 and clearly in the possession of the city’s top brass.

“The report- which the DA has seen- clearly outlines how these four contractors committed fraud and corruption in cahoots with political elements,” she said.

She said the DA would alert the Public Protector’s office to the situation.

“This makes a complete mockery of the court processes and the communities of eThekwini,” she said.

At the time of going to print, eThekwini Municipality had not responded to the Berea Mail’s requests for comment.

 

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