The four people who allegedly defrauded the Emalahleni Local Municipality are out on R5 000 bail each.
Mr Johannes Matshipa (member of the mayoral committee of Emalahleni Local Municipality), Mr Johannes Mdluli (former ward councillor), Ms Joyce Sibuyi (member of the Ilanga Libalele Co-operative) and Ms Augustine Mkhwanazi (former Speaker of Emalahleni Local Municipality) appeared in Witbank Magistrate Court on February 16 due to charges of fraud. The case was postponed to April 21.
Mr Johannes Matshipa (member of the mayoral committee of Emalahleni Local Municipality).
The municipal corridors buzzed when members of the Hawks, Middelburg Serious Commercial Crime Investigation, Serious Corruption Investigation, SANEB and the Financial Asset Forfeiture Investigative Unit (FAFI) interrupted a meeting at the council chambers on February 15 and arrested Matshipa.
The other arrests followed shortly.
Ms Augustine Mkhwanazi (former Speaker of Emalahleni Local Municipality).
It is alleged that, in 2013, the suspects embezzled close to R1.6-million from a local farmer’s cooperative.
Monies from land that was leased to two farmers from Ga-Nala never made its way to the municipality’s coffers.
The money was paid into an account belonging to a company called Nutra Trading and Project.
The farmers were under the impression that they were paying beneficiaries, Ilanga Libalele Co-operative that stayed on the land.
The farmers were given permission to farm with maize and soybeans on condition that they train beneficiaries in the skill of farming.
One of the farmers, who asked to be kept anonymous, said they leased land from the municipality and was sent a letter in which the bank account for the secondary account was noted.
The Democratic Alliance (DA) uncovered these irregularities last year and on July 22 their Provincial Chairperson and Political Head in Emalahleni, Jane Moloisi-Sithole and Caucus Leader Cllr Koos Venter laid the official charges against the municipal manger, Mr Theo van Vuuren accusing him of failing to take all reasonable steps to prevent corruption.
The DA amongst others uncovered that one of the farmers paid R75 000 into Mdluli’s personal bank account.
Venter said after the charges was laid the Executive Mayor, Cllr Lindiwe Ntshalintshali and the Municipal Manager, Mr. Theo van Vuuren accused him of withholding information from them about the fraud case.
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“Mr Van Vuuren was first informed about the suspected fraud in 2015 and I also showed him the letter which informed the farmers about the approval of the so-called lease as well as the bogus bank account referred to as a ‘secondary account’. The letter was signed by Mr Van Vuuren,” said Venter.
“The mayor admitted on national TV that she received documentation from me regarding the case and also said that I should have used internal council processes to resolve this. Not a single person was ever prosecuted or criminally charged by this council for fraud or theft since the year 2000.”
Venter is adamant that Van Vuuren should be charged with financial misconduct in terms of the relevant legislation and the mayor in terms of the code of conduct for councillors.
Mr Johannes Mdluli (former ward councillor).
Reacting to this statement, Mr Kingdom Mabuza said the municipality was aware of an investigation conducted by the Hawks when allegations of fraud related to the sale of farms started spreading about eight months ago.
Ms Joyce Sibuyi (member of the Ilanga Libalele Co-operative).
“Mr Venter refused to hand over the information to the Municipal Audit Executive and as such the municipality could not investigate. The municipality, under the leadership of the executive mayor co-operated fully during the investigation.”
“The opposition, particularly the DA, falsely accused Mr Van Vuuren of corruption related to the sale of farms. The arrest, which is highly regrettable, will hopefully result into the DA to desist from further accusing Mr Van Vuuren of imaginary corruption and allow him to execute his duties. The unfortunate and baseless perception planted by the DA against Mr Van Vuuren has resulted in, among other things, diminishing respect and trust within the communities, failure to focus on his duties, and reluctance by the community and business to cooperate on issues of payment for service. The mayor was also wrongly accused of ‘protecting’ the ‘corrupt’ she and Mr Van Vuuren, was put under tremendous pressure to suspend him despite lack of evidence,” Mabuza defended the municipal manager and mayor.
Mabuza said with the Hawks now taking the matter in their hands they hope that Van Vuuren will be afforded an opportunity and support to continue dealing with real issues like rescuing eMalahleni from spiralling into complete darkness.
