Key Takeaways
- The KwaDukuza local municipality’s bank account was hacked, resulting in a loss of R35.7m in January this year.
- An investigation by the Hawks has recovered R30.8m of the stolen amount, with the remaining R4.9m still being pursued.
- The municipality is working to root out criminal elements and ensure good governance and oversight.
- A section 106 probe by the KwaZulu-Natal co-operative governance and traditional affairs MEC has been concluded and findings are expected to be presented on Wednesday.
- The Special Investigating Unit (SIU) is investigating irregularities in three high-value tenders dating back to 2018-2019, including alleged corruption and wasteful expenditure.
Introduction to the Investigation
The KwaDukuza local municipality has been the subject of a high-profile investigation into a hacking incident that resulted in the theft of R35.7m from its bank account in January this year. The investigation, led by the Hawks, has made significant progress, with R30.8m of the stolen amount already recovered. The municipality’s mayor, Sduduzo Gumede, has stated that the investigation is at a sensitive stage and that there is a possibility that the hackers were working in collusion with municipal officials. Gumede has emphasized the municipality’s commitment to rooting out criminal elements and ensuring good governance and oversight.
Probe into Financial Irregularities
The KwaZulu-Natal co-operative governance and traditional affairs MEC, Thulasizwe Buthelezi, has launched a section 106 probe into the KwaDukuza local municipality, covering several areas of concern, including the theft of funds from the municipal banking account, implementation of disaster grants for two bridge projects, and irregular expenditure incurred in the 2022-23 financial year. The probe has now been concluded, and Buthelezi is expected to present the findings on Wednesday. The investigation has run parallel to the SIU investigation, which is probing allegations of corruption in relation to three high-value tenders issued by the municipality.
SIU Investigation
The SIU investigation is focused on irregularities in three high-value tenders dating back to 2018-2019, including wasteful expenditure and alleged misconduct. The tenders in question include the KwaDukuza Mall bulk supply panel of contractors for road rehabilitation, the construction of an industrial 33/11kv substation upgrade, and the KwaDukuza Mall bulk supply. The SIU spokesperson, Kaizer Kganyago, has confirmed that the investigation is ongoing and that no conclusions have been reached at this stage. The municipality’s mayor, Sduduzo Gumede, has stated that the investigation is ongoing and that there is no conclusion at this stage.
Municipality’s Response
The KwaDukuza local municipality has stated that it will await the findings of the section 106 probe and the SIU investigation before taking any further action. The municipality’s manager, Nhlanhla Mdakane, has emphasized the importance of allowing the investigations to run their course and of taking a thorough and considered approach to addressing the allegations of corruption and financial irregularities. The municipality has also emphasized its commitment to good governance and oversight, and to ensuring that any criminal elements are rooted out and held accountable.
Conclusion and Next Steps
The investigation into the hacking incident and the financial irregularities at the KwaDukuza local municipality is ongoing, with several key findings and developments expected in the coming days. The municipality’s mayor, Sduduzo Gumede, has emphasized the importance of transparency and accountability, and has stated that the municipality will not hesitate to act swiftly to address deficiencies and ensure good governance and oversight. The presentation of the findings of the section 106 probe on Wednesday is expected to provide further clarity on the allegations of corruption and financial irregularities, and to inform the next steps in the investigation. As the investigation continues to unfold, it is clear that the KwaDukuza local municipality is committed to rooting out criminal elements and ensuring good governance and oversight.