Maladministration, fraud and corruption probed at ZDM

Lolo Madonsela The forensic investigation report into allegations of maladministration, fraud and corruption at Zululand District Municipality (ZDM) has recommended that the mayor be suspended with full pay. The investigation, conducted by Mdledle Incorporated, was mandated by MEC of Co-operative Governance & Traditional Affairs (CoGTA) Sipho Hlomuka. The investigation was conducted in terms of Section …

Lolo Madonsela

The forensic investigation report into allegations of maladministration, fraud and corruption at Zululand District Municipality (ZDM) has recommended that the mayor be suspended with full pay.
The investigation, conducted by Mdledle Incorporated, was mandated by MEC of Co-operative Governance & Traditional Affairs (CoGTA) Sipho Hlomuka.
The investigation was conducted in terms of Section 106(1)(b) of the Local Government Municipal Systems Act.
The report further recommended that the mayor be removed as mayor and councillor, and while that process is underway, he should be suspended from participating in any municipal activities.
The report was tabled on Thursday in a virtual council meeting, and the municipality has been given 21 days within which to revert to the MEC on implementation of the report.
The report presented 16 allegations that were investigated, indicated its findings and gave recommendations in each case.

Also read: CoGTA launches investigation into alleged maladministration

The allegations included: irregular and unlawful suspension of Municipal Manager SB Nkosi; irregular appointment of Acting Municipal Manager Manqele and extension of his appointment; municipal expenditure of R1,800,000 for the Ingonyama Trust event without council approval; bursaries awarded exceeded the budget amount of R600,000 without council approval; awarding of contract without following procurement processes and the alleged bribe paid to the municipality; security tender awarded by the municipality for a contract price of R32,000,000 beyond the budgeted amount of R15,000,000 and a bribe of R2,300,000 paid by a service provider to continue with provision of the service.
Further allegations were that the municipality spent R600,000 on the funeral of a late councillor, in contravention of council’s approval, irregular appointment of a company to do the municipal organogram, unlawful instruction from the mayor to the municipal manager to effect payment to another company so the service provide could finalise an application to an oil company, unlawful instruction from the mayor to the municipal manager to appoint a municipal employee, and that the mayor attended and participated in the briefing session on the drilling of boreholes projects.
Mdledle Incorporated issued recommendations to be implemented after the findings; and those included that the MEC of CoGTA should instruct the ZDM council to institute disciplinary proceedings against the mayor in terms of item 14 (1) or of the Code of Conduct of Councillors for contravening the breach of the code and follow procedure set out in item 14(3) of the code.
Further, that the MEC should instruct the ZDM council to institute disciplinary proceedings against the Speaker, NE Nkwanyana, in terms of item 14(1) or (2) of the Code of Conduct of Councillors for contravening the breach of the code and follow procedures set out in item 14(3) of the code.
It further recommended that the MEC write a letter to the mayor, suspending him with full pay pending the investigation, in order not to compromise the integrity of the investigation. If the mayor refuses to be suspended, the MEC must lodge an application to the High Court, seeking an order declaring him suspended.
The report also recommended that the MEC appoint the commission in terms of item 14 (5) of the code, which is contained in Schedule 1 of the Local Government Municipal Systems Act, No 32 of 2000 to enforce item 14(6) of the Code of Conduct.
On the bribery allegations, the forensic report suggested that CoGTA considers further referring the matter relating to bribery to the SAPS for further investigation in terms of the Prevention and Combating of Corrupt Activities Act No 12 of 2004.
Among many other recommendations, the report advised that the mayor should be removed as both mayor and councillor while that process is underway, and that he should be suspended from participating in any activities of the municipality, adding that an amount of R198,360 be recovered from the chief financial officer in terms of Section 32(1)© of the MFMA.
“We are committed to investigating all instances of wrongdoing – including fraud, corruption and maladministration in municipalities – brought to our attention. We conduct a multitude of investigations simultaneously and report on their progress to the Provincial Legislature on a regular basis,” said MEC Hlomuka in a statement.
ZDM Mayor Thulasizwe Buthelezi could not shed much light on the report, as he said he had not seen it. “I have not seen the report. CoGTA has not given the report to me, nor was I interviewed by the MEC of CoGTA on the matter,” he said.
CoGTA spokesperson Nonala Ndlovu said that, “The report was tabled before council in a virtual meeting and my understanding is that the mayor is part of council. We have given council 21 days to go through the report and until then, we cannot comment on the contents of the report.”

CoGTA MEC Sipho Hlokuma.

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