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IOL News
2 days ago
- Politics
- IOL News
Zandile Gumede's lawyer claims State has ignored court order in fraud investigation
Former eThekwini mayor Zandile Gumede and her spokesperson, Siphelele Jiyane, outside the Durban High Court. Image: Tumi Pakkies / Independent Newspapers It has been 10 days since the Durban High Court issued an order compelling the State to disclose evidence regarding a fraud investigation into former mayor of eThekwini, Zandile Gumede. However, her lawyer says the State has not honoured the court's order. Gumede is currently on trial with 21 others for money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act, relating to the R320 million Durban Solid Waste (DSW) tender. The evidence sought by the defence is a report done by Masama Consulting, which found that the appointment of the Integrity Forensic Solutions (IFS) was unlawfully made by eThekwini's City Integrity and Investigations Unit (CIIU). According to the evidence before the court, CIIU received a stack of documents alleging irregularities in the DSW tender. The IFS was then hired to look into it. Following an investigation by the IFS, the Hawks were given the case, and arrests were made. On Friday morning, Gumede's counsel, advocate Jay Naidoo SC, told the court that the 10 days had passed and the State had not given him anything. Counsel appointed by the National Prosecuting Authority (NPA), advocate Reshma Athmaram, told the court that they were waiting for the eThekwini city manager's response. 'Two days after the order was issued, the investigating officer served it to the accounting officer (city manager), and we haven't received a response,' she said. Judge Sharmaine Balton said the municipality should comply with the court order. Balton said the State needed to give the defence, among other things, a whistle-blower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report), and the CIIU's recommendations on actions to be taken. Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality should be made available to the defence. She added that a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. Additionally, the matter was postponed to Monday as the new witness, Zithulele Mkhize, did not take the stand. This was due to the 13th accused, Mkhize, being sick. His counsel, advocate Willie Lombard, told the court that his client was sick and handed in a medical report. He submitted a copy and an original medical report.
IOL News
30-05-2025
- Politics
- IOL News
Inside the R320 million fraud case against Zandile Gumede: Court updates and revelations
Former eThekwini mayor Zandile Gumede and her spokesperson Siphelele Jiyane. Image: Tumi Pakkies / Independent Newspapers The Durban High Court earlier this week ruled in favour of Zandile Gumede, the former mayor of eThekwini Municipality, and her co-accused, ordering the State to reveal a report from the municipality claiming that the company that looked into the R320 million tender irregularities was unlawfully appointed. Gumede and her 21 co-accused are facing numerous charges, including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act, relating to the R320 million Durban Solid Waste (DSW) tender. Integrity Forensic Solutions (IFS), a forensic company contracted by eThekwini's City Integrity and Investigations Unit (CIIU), looked into irregularities in the tender. This is after the CIIU received anonymous documents alleging irregularities in the solid waste tender. After IFS investigated, the Hawks took over the matter, leading to arrests. The court in 2024 was told that there was an investigation by the city to probe the appointment of IFS. The city hired Masama Consulting to investigate. As a result of that investigation, the CIIU's top investigator was fired. He is considered a key witness in the corruption trial Counsel for Gumede, advocate Jay Naidoo SC, made an application to the court asking for it to compel the State to make the Masama report available. Naidoo said he wanted to open his cross-examination with the former CIIU boss to question him about the appointment of IFS. In delivering her ruling, Judge Sharmaine Balton ordered the State to provide the applicant (Gumede) with the file opened and registered with the CIIU, pursuant to a 'whistle-blower' report dated May 9, 2023, about allegations of irregularities committed by the former boss of CIIU and top investigator, in the appointment of IFS, to conduct the forensic investigation in the matter. Judge Balton said this included, among other things, a whistle-blower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report), and the CIIU recommendations on actions to be taken. The judge ruled that a copy of the agenda, minutes of the meeting, and resolutions of the Executive Committee and the full council of eThekwini Municipality about the Masama report must be made available to the defence. Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality should be made available to the defence. She said a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. 'The respondent (State) is directed to provide the information to the applicant (Gumede) within 10 days of this order,' she said. Additionally, the defence started its cross-examination of a State witness who worked for the tenders and contracts unit in eThekwini. The witness said she was part of the Executive Acquisitions Committee (EAC), an advisory committee that was established by former city manager Sipho Nzuza. She told the court that, given the urgency of getting contractors to collect waste in the city, Nzuza was well within his rights to require the former deputy head of Supply Chain Management, Sandile Ngcobo, to sign the letters of award on December 28, 2017. The court learned that the contracts of service providers who were collecting waste around the city were going to expire on December 31, 2017. The Solid Waste Unit requested permission from the Bid Adjudicating Committee (BAC) to hire qualified service providers to collect waste. This comes after it was unable to complete the bidding procedures in time due to the large number of bidders it received for the November tender. On December 19, 2017, the BAC approved quotations for the companies. The witness did not, however, bring the BAC's decisions to the December 21, 2017, EAC meeting. She explained that it was because she had been off since December 20. She also mentioned that the BAC had authorised the quotations, but with a need that compliance checks to be performed. Following protocol, she had also stated that the EAC's agenda had been set days in advance. The trial continues [email protected]
IOL News
27-05-2025
- IOL News
State ordered to avail evidence regarding fraud investigation into former mayor Zandile Gumede
Former eThekwini mayor Zandile Gumede and her supporters. Image: Nomonde Zondi/File The Durban High Court has ordered the State to make a report available that states that the forensic company that investigated the former mayor of eThekwini Zandile Gumede and 21 others, was appointed unlawfully by the eThekwini municipality's investigation unit to investigate tender irregularities surrounding the R320 million Durban Solid Waste (DSW) tender. Gumede and her 21 co-accused are facing numerous charges including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW tender. The forensic company is Integrity Forensic Solutions (IFS); it was outsourced by the City Integrity and Investigations Unit (CIIU) to investigate DSW tender irregularities. This is after the CIIU received a stack of documents anonymously alleging solid waste tender irregularities. After IFS investigated, the matter was handed over to the Hawks and arrests were made. The court in 2024 was told that there was an investigation done by the City to probe the appointment of IFS. As a result of that investigation, the CIIU's top investigator was fired - this investigator is one of the crucial witnesses in this matter. The media is prohibited from mentioning the names of people mentioned in the order as they are State witnesses. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Delivering her ruling, Judge Sharmaine Balton said the State should provide Gumede with the file opened and registered with the CIIU, pursuant to a 'whistleblower' report dated May 9, 2023, in relation to allegations of irregularities committed by the former boss of CIIU and top investigator, in the appointment of IFS, to conduct the forensic investigation in this matter. The former boss of the CIIU is a key witness in the corruption trial of Gumede. Judge Balton said this included, amongst other things, a whistleblower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report) and the CIIU recommendations on actions to be taken. Masama Consulting is the company that investigated the appointment of IFS and issued a report. Judge Balton said a copy of the agenda, minutes of the meeting, and resolutions of the Executive Committee and the full council of eThekwini municipality about the Masama report must be made available to the defence. Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality, should be made available to the defense. She said a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. 'The respondent (State) is directed to provide the information to the applicant (Gumede) within 10 days of this order,' she said. Although Gumede made the application before court, the other defence counsels told the court that they support it. During the hearing of this application in March, Gumede's counsel advocate Jay Naidoo SC, told the court that CIIU did not follow the supply chain management protocols in appointing IFS.
IOL News
26-05-2025
- IOL News
State required to disclose evidence regarding fraud investigation into Zandile Gumede
Former eThekwini mayor Zandile Gumede and her supporters. Image: Nomonde Zondi/File The Durban High Court has ordered the State to make a report available that states that the forensic company that investigated the former mayor of eThekwini Zandile Gumede and 21 others, was appointed unlawfully by the eThekwini municipality's investigation unit to investigate tender irregularities surrounding the R320 million Durban Solid Waste (DSW) tender. Gumede and her 21 co-accused are facing numerous charges including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW tender. The forensic company is Integrity Forensic Solutions (IFS); it was outsourced by the City Integrity and Investigations Unit (CIIU) to investigate DSW tender irregularities. This is after the CIIU received a stack of documents anonymously alleging solid waste tender irregularities. After IFS investigated, the matter was handed over to the Hawks and arrests were made. The court in 2024 was told that there was an investigation done by the City to probe the appointment of IFS. As a result of that investigation, the CIIU's top investigator was fired - this investigator is one of the crucial witnesses in this matter. The media is prohibited from mentioning the names of people mentioned in the order as they are State witnesses. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ In delivering her ruling, Judge Sharmaine Balton said the State should provide the applicant (Gumede) with the file opened and registered with the CIIU, pursuant to a 'whistleblower' report dated May 9, 2023, in relation to allegations of irregularities committed by the former boss of CIIU and top investigator, in the appointment of IFS, to conduct the forensic investigation in this matter. The former boss of the CIIU is a key witness in the corruption trial of Gumede. Judge Balton said this included amongst other things a whistleblower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report) and the CIIU recommendations on actions to be taken. Masama Consulting is the company that investigated the appointment of IFS and issued a report. Judge Balton said a copy of the agenda, minutes of the meeting, and resolutions of the Executive Committee and the full council of eThekwini municipality about the Masama report must be made available to the defence. Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality, should be made available to the defense. She said a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. 'The respondent (State) is directed to provide the information to the applicant (Gumede) within 10 days of this order,' she said. Although Gumede made the application before court, the other defence counsels told the court that they support it. During the hearing of this application in March, Gumede's counsel advocate Jay Naidoo SC, told the court that CIIU did not follow the supply chain management protocols in appointing IFS.
IOL News
23-05-2025
- Business
- IOL News
Anticipated ruling in Zandile Gumede's R320 million corruption trial
Former eThekwini mayor Zandile Gumede and her supporters. Image: Nomonde Zondi The Durban High Court will on Monday make the much-anticipated ruling about having the reports and annexures admitted into the Zandile Gumede R320 million corruption and fraud trial and about the appointment of a forensic company that investigated this matter. The forensic company Integrity Forensic Solutions CC (IFS) was outsourced by the eThekwini Municipality's City Integrity and Investigations Unit (CIIU) after it received a stack of documents anonymously alleging tender irregularities of Durban Solid Waste (DSW). During court proceedings on Friday, Judge Sharmaine Balton added that she had completed the draft order and invited the State and defence to have a look at it, and said it would be delivered on Monday morning. Gumede's counsel, Advocate Jay Naidoo, had put an application requesting the State to provide a report from Masama Consulting and annexures to the defence so they could be used to cross-examine key State witnesses, some of whom are former senior officials of CIIU. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Masama Consulting was hired by the city to probe the appointment of the IFS after a whistleblower alleged that it was unlawfully appointed. The court has learned that an investigator from CIIU was dismissed by the municipality after the probe into the IFS. The State has opposed Naidoo's application and said it was irrelevant to the charges placed against the 22 accused. The accused face numerous charges which include money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW tender. The spokesperson for Gumede, Siphelele Jiyane, said the judgment was supposed to be heard before the session started on Monday, but that did not happen. The whole week, it had been expected for the court to say something about it, but it did not. 'We were hoping for it to be heard this morning, but it did not happen,' he said. Jiyane said they were eager to hear the court's decision. 'The cracks of this case lie with the application that has been made.' He said that should the ruling favour Gumede and her co-accused, continuing with the case would be a futile exercise. 'As we have been saying, it's a waste of taxpayers' money as this case has continued for seven years. The NPA (National Prosecuting Authority) would have to account for all these years wasted,' Jiyane added. Additionally, Jiyane said if the ruling is against the accused, there are many ways to continue making new applications. However, he said that what is in the application still stands, that the IFS is charged by the municipality. Meanwhile, the State witness, who is a former municipal official, continued to lead evidence, telling the court about her duties. She will likely continue leading her evidence on Monday after the ruling.
