Forensic report uncovers ‘fraudulent conduct’ by Ugu officials

A report on accountability management in some municipalities in KwaZulu-Natal, presented this week to Parliament’s Standing Committee (Scopa) has shown that municipalities blatantly ignore disciplinary actions to deal with officials implicated in corruption, fraud and wasteful expenditure.

Ugu District Municipality is one of the municipalities where a forensic report revealed that former senior officials and local businessmen were implicated in tender irregularities and flouted tender processes.

As such, investigations were recently launched into Ugu’s spend over the last couple of years. The investigations revealed how some businesses were given tenders worth millions of rands without following proper supply chain management procedures.

The 236 page forensic investigation revealed how certain officials working with these companies submitted invoices to the municipality for work that was never completed.

The report also talked about how some companies were disqualified without concrete reason in order to award tenders to companies preferred by these officials, most of whom had since left the municipality.

The report also indicated the following:

* Bid advertised for a shorter period than the legislated number of days;
*Suppliers awarded contracts above CIDB grading;
*Awarded bidders municipal rates in areas;
*Payments were made to service providers without job cards or completion certificates.

In one case, a tender amounting to R21-m was awarded to a company for the upgrade of the Bhobhoyi to Murchison pump station and the supply of electromechanical equipment.

According to the report, R20-m was paid out to the contractor despite the company’s failure to execute its duties.

The report added that there was no indication from Ugu on whether action had been taken against this contractor for failing to complete contractual obligations.

Project officers also verified that the work had been completed and invoices were sent for approval despite the work not being done which, the report said, evidenced fraudulent conduct.

Ugu Council is expected to today (Thursday), analyse the report and make recommendations on what action is to be taken against those implicated.

However, the head of municipal investigations at KZN’s Department of Cooperative Governance and Traditional Affairs (Cogta) Sheetal Govender told parliament that in many instances officials were quick to resign before disciplinary action could be finalised.

“Civil proceedings are delayed and not many are instituted as this is often linked to criminal liability in terms of section 300 of the Criminal Procedure Act,” she said.

“Most of these cases remain pending for prolonged periods without any successful prosecutions.”

Head of KZN Cogta, Thando Tubane said that municipalities chose which recommendations to implement and that presented them with a challenge.

“There is also a serious lack of co-ordination among law enforcement agencies when it comes to acting on recommendations which need to be dealt with at a criminal level.”

He also said that in one instance, Cogta had instituted a forensic report into Ray Nkonyeni Municipality and the municipality had in turn submitted this to the Hawks.

The Hawks then requested that Cogta begin another investigation.

Mr Tubane added that disciplinary action was being undermined in some municipalities, as was evident by the ‘pattern’ in the presentation by Scopa.

The mayor of Ugu, Sizwe Ngcobo said in an interview on Tuesday this week that Council was to sit and deliberate on the corruption issues raised in the forensic report.

“I cannot decide alone what action will be taken against those implicated. It will be a collective decision by Council,” he said.

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