Endumeni municipality sitting on damning report alleging corruption
The fraud relates to the controversial awarding of a security tender to FBL security company from Newcastle, relying on sections of the Local Government: Municipal Systems Act. The law allows municipalities to appoint companies without following proper bidding processes on the basis that the appointment is urgent.
TimesLIVE is in possession of the findings of the report which was first issued in April last year. For more than a year, the trouble-torn Endumeni municipality has not yet acted against those implicated.
The report was released when Bongi Sithole-Moloi was still the KwaZulu-Natal Cogta MEC. The province now has a new MEC, Thulasizwe Buthelezi.
On March 7, Buthelezi gave the Endumeni council 21 days to act against those implicated but nothing happened.
The findings revealed that the appointment of FBL was irregular and recommended that those implicated be hauled over the coals.
Buthelezi said his department has received a sworn affidavit with annexures that was compiled by a whistle-blower outlining allegations of fraud, corruption and maladministration which occurred in Endumeni in respect of the appointment of FBL which rendered protection services.
'The investigation has been concluded and a final report has been prepared with recommendations as to the corrective actions that are deemed necessary. There is an obligation on the council to implement necessary measures,' said Buthelezi.
The findings also established that there was a corrupt relationship between Endumeni officials and FBL. The former municipal manager, Linda Hlongwane, who is also implicated in the report, is quoted as saying he was under pressure to appoint the company that has a relationship with politicians.
The auditor-general also stated that payments made to FBL were irregular expenditure.
Despite that, the municipality continued to pay FBL.
Among those implicated in the alleged fraud and corruption is municipal manager Sthembiso Ntombela. Ntombela signed the letter appointing FBL while Hlongwane, the former municipal manager, initiated processes to appoint FBL.
Contacted for comment, Ntombela admitted he signed the appointment letter but declined to comment further and referred other questions to the speaker, Andile Nsibande.
Nsibande said he was aware of the report on and findings of the forensic investigation and a report from the office of Buthelezi but said the municipality had asked for an extension to look at Buthelezi's report as a council.
KwaZulu-Natal Cogta spokesperson Senzelwe Mzila said the speaker of Endumeni had requested an extension for council to deal with the report, adding that the extension was granted.
ANC chief whip in the Endumeni council Sphamandla Kheswa said it was disconcerting to watch the municipality being destroyed.
Endumeni is one of the worst performing municipalities in the province and is sitting on a disclaimer audit finding from the auditor-general.
'It is sad that this is allowed to happen by the relevant authorities including the MEC Buthelezi, whose department is constitutionally mandated to oversee and support municipalities, as well as the premier of KZN as the ultimate executive authority in the province,' said Kheswa.
Kheswa said the officials implicated in serious fraud, corruption and maladministration allegations, were still allowed to roam free and preside over the affairs of the municipality and destroy whatever evidence that might be remaining.
Head of provincial government communications Bongani Gina said: 'The premier does not in anyway interfere with operations in municipalities outside the prescription of the law. The premier entrusted all local government matters to the Cogta MEC.'
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