As a kicker, it details the constitution and provisions of the Municipal Finance Management Act on “irregular spending” and the bars on mayors and councillors from interfering with supply chain management systems and influencing officials.
The indictment then alleges that the accused worked together to “manipulate procurement processes” so that contracts were awarded to specific suppliers.
This enabled “large numbers of ANC ward councillors, ward committee members, members of business forums and organisations like the MKMVA and Delangokubona (business forum) to benefit financially from the new DSW contract, thus increasing the possibility of being favourably regarded in the political arena”.
In essence, the state alleges that the city, in seeking to award a new DSW contract, classified it as a “special project”.
Abbu, on the instruction of Gumede and Mthembu, was appointed by Nzuza as head of special projects. Nzuza then appointed Ngcobo as chairperson of the BAC to ensure the appointment of the four preferred service providers who were handpicked by ANC cadres, councillors Mthokozisi Nojiyeza, Sdudozo Khuzwayo and Bhekokwakhe Phewa, believed to be part of the ANC’s so-called RET faction.
The business entities who were given the contract were Ilanga La Mahlase Pty Ltd, Uzuzinekele Trading, Omphile Thabang Projects, and El Shaddai Holdings Group CC who, it is alleged, also had “horizontal relationships”.
The state alleges some of the money paid to these companies ended up in Gumede’s bank account, including R30,000 in cash and R28,000 which was transferred into her daughter’s account.
Money was also paid to the Zandile Gumede Foundation, and R100,000 into the bank account of the ANC eThekwini region.
The state alleges the contracts were awarded to the four entities though the contract, valued at R45m, had twice been put out to tender with hundreds of bids being received.
These were not evaluated timeously, which created the so-called “emergency situation” under which usual tendering processes, and competitive bidding processes, were done away with.
Ultimately, the four companies were paid more than R320m. Gumede, Mthembu, Nzuza, Abbu and Ngcobo, it is alleged, “used their position to influence a further extension of the initial contract for another six months, without SCM processes” and supported and approved further financial resources even though the budget had been exceeded, the state alleges.
The state is expected, in part, to rely on cellphone communications between some of the accused at the relevant times to prove some of the charges.
As many as 55 witnesses are expected to testify. Included in the list is recently retired city treasurer Krish Kumar. The names of some witnesses have been withheld.
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Gumede corruption trial set for Monday but delay over legal funds may halt proceedings
Image: Sandile Ndlovu
The trial of former eThekwini mayor Zandile Gumede and 21 others, charged with racketeering, fraud and corruption relating to R320m spent by the city on the “illegal” Durban Solid Waste contract, is scheduled to begin on Monday in the Durban high court, the National Prosecuting Authority has said.
However, sources close to the case said they expected applications for an adjournment from some of the accused who had not yet “placed their legal representatives in funds”.
The presiding judge will have to decide what path to follow in this regard: whether to give the accused more time to come up with money (which will require some explanation of their ability to do so and within what time-frame), or whether to insist they apply, if they qualify, for legal aid.
Gumede is now accused number one, according to a revised indictment served recently.
This means she is considered to be the “head” of the alleged corrupt enterprise, as defined in the Prevention of Organised Crime Act which sets out what constitutes an offence under its racketeering provisions.
She is accused of committing the crimes to “firmly establish” her position as mayor and increase her standing in the political arena, especially in the Radical Economic Transformation (RET) camp of the ANC.
Accused number two is former ANC senior councillor Mondli Mthembu and suspended city manager Sipho Nzuza is accused number three.
The list of accused also includes Robert Abbu, deputy head of strategic and new developments at the time of the alleged offences, Sandile Ngcobo, deputy head of supply chain management, other councillors and businesses entities, and their owners, who benefited from the alleged corruption.
In total, the indictment details 2,793 charges (including some alternatives) relating to the award of the contract for refuse collection, street cleaning and to tackle illegal dumping in townships.
Zandile Gumede absent at pre-trial proceedings in R320m fraud and corruption matter
As a kicker, it details the constitution and provisions of the Municipal Finance Management Act on “irregular spending” and the bars on mayors and councillors from interfering with supply chain management systems and influencing officials.
The indictment then alleges that the accused worked together to “manipulate procurement processes” so that contracts were awarded to specific suppliers.
This enabled “large numbers of ANC ward councillors, ward committee members, members of business forums and organisations like the MKMVA and Delangokubona (business forum) to benefit financially from the new DSW contract, thus increasing the possibility of being favourably regarded in the political arena”.
In essence, the state alleges that the city, in seeking to award a new DSW contract, classified it as a “special project”.
Abbu, on the instruction of Gumede and Mthembu, was appointed by Nzuza as head of special projects. Nzuza then appointed Ngcobo as chairperson of the BAC to ensure the appointment of the four preferred service providers who were handpicked by ANC cadres, councillors Mthokozisi Nojiyeza, Sdudozo Khuzwayo and Bhekokwakhe Phewa, believed to be part of the ANC’s so-called RET faction.
The business entities who were given the contract were Ilanga La Mahlase Pty Ltd, Uzuzinekele Trading, Omphile Thabang Projects, and El Shaddai Holdings Group CC who, it is alleged, also had “horizontal relationships”.
The state alleges some of the money paid to these companies ended up in Gumede’s bank account, including R30,000 in cash and R28,000 which was transferred into her daughter’s account.
Money was also paid to the Zandile Gumede Foundation, and R100,000 into the bank account of the ANC eThekwini region.
The state alleges the contracts were awarded to the four entities though the contract, valued at R45m, had twice been put out to tender with hundreds of bids being received.
These were not evaluated timeously, which created the so-called “emergency situation” under which usual tendering processes, and competitive bidding processes, were done away with.
Ultimately, the four companies were paid more than R320m. Gumede, Mthembu, Nzuza, Abbu and Ngcobo, it is alleged, “used their position to influence a further extension of the initial contract for another six months, without SCM processes” and supported and approved further financial resources even though the budget had been exceeded, the state alleges.
The state is expected, in part, to rely on cellphone communications between some of the accused at the relevant times to prove some of the charges.
As many as 55 witnesses are expected to testify. Included in the list is recently retired city treasurer Krish Kumar. The names of some witnesses have been withheld.
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