Cape Town - Kwazulu-Natal director-general Nonhlanhla Khoza was arrested on Monday morning by the Directorate of Priority Crimes Investigation (DPCI) for allegedly defeating the ends of justice and intimidation.
Brigadier Thandi Mbambo, spokesperson for the DPCI, also known as the Hawks, said Mkhize, 58, was arrested at her home together with her 47-year-old accomplice, following an investigation by the National Clean Audit Task Team of the Serious Commercial Crime Investigation.
The arrest of the pair brings to six the total number of suspects arrested in connection with allegations of corruption at the uMhlathuze Water Board in Richards Bay, KwaZulu-Natal.
Mbambo said the Chairperson of the uMhlathuze Water Board reported allegations of irregular appointment of service providers, without following the supply chain management protocols as well as contravention of the Public Finance Management Act.
She said the investigations revealed that some senior officials were implicated in the irregularities which resulted in the uMhlathuze Water Board being prejudiced by an amount estimated at about R37 million.
“Following the investigation thereof and compilation of the forensic report, the Chairperson of the uMhlathuze Water Board allegedly received a visit from an unknown person at her home claiming to be from the National Intelligence Agency (NIA) and that he was sent by the senior manager in the Premier’s Office,” she said.
“The alleged individual threatened the chairperson with arrest and demanded the forensic report. He further insisted that the complainant must stop with the investigation into the uMhlathuze Water Board members,” Mbambo said.
However, it later emerged that the said person was not from the NIA and was in cahoots with persons of interests in the investigation.
“The operation is ongoing and so far two more people implicated into the malfeasance at the bulk water utility uMhlathuze Water have been arrested on charges of corruption, fraud and money laundering.
“All arrested individuals will appear in the Durban Magistrate court soon,” Mbambo said.
She also said more arrests were imminent.
KwaZulu-Natal Premier Nomusa Dube-Ncube’s spokesperson Ndabezinhle Sibiya said their office had received enquiries from the media regarding the arrest of Mkhize.
“Respectfully, at this stage, the Office of the Premier is not in a position to make any comment on the matter as it is in the hands of law enforcement authorities,” Sibiya said.
Mkhize is no stranger to controversy as she was fingered in irregularities involving expenditure on former president Nelson Mandela’s memorial service in Mpumalanga, where she was a director-general.
Public Protector advocate Busisiwe Mkhwebane had found that Mkhize acted unethically by paying R39.8million to a company, Carol Bouwer Productions for organising a Nelson Mandela memorial service in 2013.
In May, the water and sanitation portfolio committee heard that the Special Investigation Unit (SIU) submitted its investigation report to the in April 2013.
The presidency in 2008 authorised a proclamation into the procurement of services by uMhlatuze Water for the inspection, repair and maintenance of underwater pipes conveying effluent from the Mondi Business Papers Plant into the sea.
The procurement was apparently contrary to applicable legislation or internal prescripts, policy or regulations that regulate such procurement.
The SIU found that correct supply chain management processes were not followed, and that controls and policies in place were not sufficient to mitigate the risk of financial loss suffered by the uMhlatuze Water Board.
The corruption busting body also found that documentation critical to the investigation was either lost or destroyed negligently or intentionally, a move that hampered the investigation.
“uMhlatuze Water Board failed to keep records of financial transactions which reflected that R9 977 577.50 of payment vouchers were untraced. Majority of original contracts for tenders awarded totalling over R19 million were not found and/or did not exist,” said an SIU report.
A report tabled to the water and sanitation portfolio committee said a criminal case of fraud and corruption was opened against an employee of the uMhlatuze Water Board and the service provider who paid for gratification.
The case was reported at Richards Bay police station.
Another criminal case of contravention of the Public Finance Management Act was also opened against the board members of uMhlatuze Water Board.
The DPCI handled the two criminal investigations.
“Three implicated employees of the uMhlatuze Water Board resigned prior to the completion of investigation,” read the SIU reports.
Cape Times