Umzinyathi municipal manager suspended amid fraud and corruption allegations
The embattled municipal manager of the Umzinyathi district municipality in the KwaZulu-Natal Midlands, who is implicated in fraud and corruption allegations, has been suspended. The council meeting on Tuesday resolved to suspend Ntombenhle Mkhwanazi for three months pending her disciplinary hearing.
Mkhwanazi is implicated in damming corruption allegations relating to a payment of R5.7m for water projects that were never undertaken.
Council speaker Tyson Kunene confirmed that Mkhwanazi has been suspended after a council resolution. Kunene said Mkhwanazi is suspended for three months pending her disciplinary hearing.
According to a report compiled and tabled to the council by Garnet Ngubane and Partners Inc, the municipality from 2020 had a dubious relationship with a company called Bosch Projects. The company was tasked with the compilation of an operations and maintenance plan for wastewater treatment facilities. Also for pump stations, borehole and water schemes and network, which included the Mbono Bulk Water Project in Msinga.
The forensic report details how Umzinyathi officials made irregular payments and failed to properly instruct lawyers to defend lawsuits by Bosch Projects and had to pay millions as a result of undefended lawsuits. At the time, Mkhwanazi was a CFO working closely with the former municipal manager Lethu Mthembu.
The report recommended that some officials, like Sabelo Nhlebela, former contracts manager, Mthembu (Lethu) and others, be charged. Others should have their pensions withheld and money recouped.
'Mr Nhlebela must be charged for gross negligence in carrying out duties as he failed to manage the entire contract life cycle, including executing and ensuring compliance of the contract.
This while minimising risks and maximising the value for the municipality. This resulted in a fruitless and wasteful expenditure of R2,550,263.09. 'Civil action must be instituted against Mthembu for authorising payment to an amount of R5,798,502.08. This was for services that were never rendered.
'The forensic investigation into Bosch projects found that Mr [Germany] Ndlozi (former operations manager) was a key player and willing participant to defraud the municipality through wasteful and fruitless expenditure,' reads the report. It also recommended that the R5.7m that was paid to Bosch be recovered.
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