ANC 'patronage network' exposed in Zandile Gumede trial

The four companies that scored what became a  R320m eThekwini Durban Solid Waste contract paid about R36.5m to community-based contractors (CBCs) established by local ANC heavyweights to promote “radical economic transformation” and a “patronage network”, bank statements show.

The state, in outlining its racketeering case against former mayor Zandile Gumede and 21 others, says it obtained about 910 bank statements through subpoenas which would prove the offences in the indictment — racketeering, fraud, corruption and money laundering.

They would show that accused number five, Sandile Ngcobo, the deputy head of supply management who chaired the bid adjudication committee which awarded the initial contract, got R600,000 from successful tenderer Mzwandile Dludla (accused 11) and his company Ilanga La Mashlase  (accused 12) which Ngcobo allegedly used towards buying a  Jaguar F Pace.

They would also show that Gumede — who is accused number one — received benefits of more than R2.8m, including payments from Dludla and Ilanga.

She did not disclose these payments to the municipality.

Three councillors, Sduduzo Khuzwayo, Bhekokwakhe Phewa and Mthokozisi Nojiyeza (accused six, seven and eight), received between R15,000 and R80,000 in alleged kickbacks from some of the appointed service providers.

These were also not reported to the municipality.

The accused all pleaded not guilty last year and the trial began before Durban high court judge Sharmaine Balton on Monday with state advocate Hazel Siramen setting out the evidence and the state’s prosecutorial strategy which includes calling 112 witnesses.

The state said documentary evidence included cellphone records, bank statements, vehicle tracking data, documents taken during search and seizures of the four companies and weighbridge slips which pointed to inflated invoicing for waste disposal.

On Tuesday, Siramen continued with this.

She said Integrity Forensic Solutions (IFS) was appointed by the city integrity and investigations unit (CIIU) to conduct a forensic investigation to assess the veracity of allegations (received through an anonymous tip-off).

IFS recommended that some of its findings be reported to the police. Once the case was registered, the CIIU, IFS, and SAPS entered into a memorandum of agreement for a joint investigation.

Siramen said IFS’ Leo Saunders would testify at the trial, giving a detailed report on all the offences — including the background of the inauguration of Gumede and ANC senior councillor Mondli Mthembu.

He would say that they entered into an agreement with former municipal manager Sipho Nzuza, city deputy head of strategic and new developments Robert Abbu and Sandile Ngcobo to circumvent the outcome of supply chain management protocols to award the tender to Ilanga, Uzuzinekele Trading, Omphile Thabang Projects and El Shaddai Holdings Group CC .

Saunders would say the agreement included the creation of a “patronage network” through the use of CBCs to benefit councillors, entities linked to them, business forums and political organisations, including the ANC.

Siramen said the audit trail would show the service providers inflated invoices to “create the impression of delivery of services far in excess of what was actually delivered”.

She said there were other related cases pending in the regional court in which other councillors and weighbridge officials were standing trial.

There was also a separate case involving the purchase of the Jaguar.

“The state has attempted to present an overview of the evidence that it will rely on — it is submitted that at the conclusion of the state’s case, there will be irrefutable evidence to convict the accused and the only verdict that can be returned by this honourable court is one of guilty,” Siramen said.

The trial is continuing and the first witness is expected to be called on Tuesday.

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