Asset Forfeiture Unit targets Mhlathuze top dogs
Immovable property and top-of-the-range vehicles belonging to the accused in the Mhlathuze Water Board multi-million rand fraud case were seized by the Asset Forfeiture Unit on Friday.
The immovable properties seized on Friday are located in Pietermaritzburg, Ashburton, Umhlanga Ridge, Ballito, Mthunzini Estate, Richards Bay and Cape Town.
Luxury vehicle brands include Range Rovers, BMW X6, Mercedes V Class, Jaguar and a Harley Davidson motorcycle.
The case relates to allegations against Mhlathuze board chief executive officer (CEO) Mthokozisi Duze, chief financial officer (CFO) Babongile Mnyandu and attorney Sithembelo Ralph Mhlanga, who NPA KZN spokesperson Natasha Ramkisson-Kara said allegedly acted together to circumvent the outcome of the supply chain management (SCM) protocols of the water board in favour of the awarding of several orders to Mhlanga Incorporated, represented by Sithembelo Ralph Mhlanga.
Mhlathuze undertook an SCM process to appoint a panel of service providers to render legal services to the water board.
The approved budget for the panel was unlawfully increased by 640% allegedly by the CEO and CFO.
Unlawful tenders
Ramkisson-Kara said on Friday the accused unlawfully awarded tenders to the value of about R37 million to one law firm, Mhlanga Incorporated, and excluded 15 other law firms.
“It is alleged that the CEO and CFO also received undue benefits from the said law firm during the period that the CEO and CFO had processed/approved the award of tenders to the said firm.
Today [Friday], the NPA’s Asset Forfeiture Unit in KZN, as part of a multi-disciplinary task team comprising of SAPS, the National Clean Audit Task team of the DPCI and prosecutors, seized the assets of several accused persons charged with fraud and corruption in the Mhlathuze Water Board matter. The court-appointed curator has been ordered to locate property to the value of R37 million
The Witness reported in August that the senior officials had tried unlawfully to bury the forensic report exposing their corruption worth over R37 million.
The information was contained in a charge sheet that was presented at the Durban Specialised Commercial Crimes Court.
Dr Nonhlanhla Mkhize, director general in the KZN premier’s office, was arrested along with the officials but appeared later on the same day in court.
Mkhize was arrested on charges of intimidation and attempts to defeat the course of justice in relation to the same R37 million tender.
The state alleges that Mkhize facilitated a meeting with the board and a former “National Intelligence Agency” member investigating all contracts at Mhlathuze.
“As a result of fraud and corruption within the state entity there was an investigation conducted by the AG and there were some findings of irregularities.
The NIA member
“After the findings of a forensic investigation to confirm the findings of the AG, there was a preliminary report given to the Mhlathuze Water Board. In this report there were staff members of the entity who were implicated in the irregularities,” argued the state at the time.
It stated that Mkhize called the board chairperson and told her she must expect a call from a former NIA member to discuss the AG report and the forensic investigation.
The former NIA member, during the meeting with the board chairperson, demanded the contents of the investigation, thereby compromising the investigation, alleged the state.
The board chairperson then reported the matter to the board. The accused have already interfered with the investigation and they are likely to further interfere with state witnesses
Ramkisson-Kara said the order also included assets hidden in trusts and companies, and cash in bank accounts. The assets will be held under restraint pending the outcome of the criminal matter, which returns to court on December 6.
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