By Luvuyo Mjekula
The Makana Citizens Front (MCF) has laid fraud and corruption charges against senior leaders in the Makana Municipality over the payment of more than R2.6m for a water pump that was never delivered.
The South African Police Service has confirmed the case.
“We can confirm that Makhanda SAPS opened a case of fraud after a report was received that payment was made by Makana Local Municipality to a private company for [a]water pump that was never delivered,” spokesperson Captain Marius McCarthy said yesterday (Thursday).
McCarthy said the case docket was transferred to the Commercial Crimes Intelligence Unit in Gqeberha for investigation and is currently with the National Prosecuting Authority for a decision.
In a sworn affidavit seen by Grocott’s Mail, the leader of MCF, Lungile Mxube, says the payment of millions of taxpayers’ money to Manco Business Enterprise in July 2022 was irregular and unlawful and amounted to fraud and corruption.
He argues the municipality should have followed up and recovered the R2.6m.
Mxube says time has lapsed without any evidence of consequence management or any attempt at recovering any misspent funds amounting to more than R3.2 million, including more than R600 000 in compensation to former Engineering and Infrastructural Services director, Asanda Gidana.
The SA Local Government Bargaining Council (SALGBC) ruled in Gidana’s favour after the municipality dismissed her over the undelivered water pump.
Mxube alleges that Makana officials and political office bearers had attempted to blindside the council when municipal manager Pumelelo Kate tabled the SALGBC report at a virtual special council meeting in December last year.
Mxube says the intention was to “condone irregular, wasteful and fruitless expenditure”.
He proposed that the report be deferred to the Municipal Public Accounts Committee because any premature decision could result in wasteful, irregular and fruitless expenditure, as has been the case. He says Council Speaker Mabhuti Matyumza rejected the proposal.
Mxube argues that Kate, chief financial officer Nomfundo Ntsangani, mayor Yandiswa Vara and Matyumza are guilty of fraud and corruption and should be charged.
Mxube says even councillors who voted in favour of the item in the 2024 meeting should face the music.
He also accuses Manco of deliberately defrauding the municipality and calls for its directors to be criminally charged.
“There is a clear violation of the provisions of the Combating of Corrupt Activities Act, Public Finance Management and Local Government: Municipal Finance Management Act by [Kate] by Manco or its directors, the mayor, Speaker and those members of the Makana municipal council who voted in favour of the item or report.”
Mxube argues that all the officials and political office bearers had a duty of care to look after the taxpayers’ money and exercise the public power and authority delegated to them more responsibly.
“The entire Makana community and all residents are going through a difficult period where their water rights are being violated.”
Despite the community’s struggles, Mxube says Gidana unlawfully paid the company, with the full knowledge of Matyumza, Kate and Ntsangani.
He calls on the South African Police Service to act swiftly to investigate and arrest all implicated individuals, bring the matter before a competent court of law, and for the Asset Forfeiture Unit to apply for freezing the assets of all implicated individuals and recover fraudulently spent taxpayers’ money.
“It is perfectly clear that unless the courts intervene, the reckless spending, fruitless and wasteful expenditure in Makana will erode public confidence and will result in the total collapse of the municipality from fulfilling its legal and constitutional obligations in terms of Chapter 7 of the South African Constitution.”
Mxube says as a South African citizen and a public representative, he owes a duty of care both to the oath of office he committed to and to all the citizens of Makana to report crime in a timely manner and to fight corruption and fraud in all of its manifestations.
“I am advised that should no civil action be taken to recover any misspent amounts within three years, prescription closes the window for such recovery. For this reason, a criminal case will soon be the sole remedy as three years will pass on 25 July 2025.”
Grocott’s Mail sought to get a comment from both the municipality and Manco but was unsuccessful.
