No action against KZN municipal staff with laptops linked to R35m theft

Three officials from the corruption-riddled KwaDukuza local municipality in KwaZulu-Natal, whose laptops are allegedly linked in the stealing of R35m from the council's Absa bank account in January, have not yet been suspended.

The municipality says there is no basis to institute disciplinary proceedings against anyone despite forensic investigation findings revealing that laptops belonging to the three officials may have been used during the commission of fraud.

It is alleged that the money was transferred to 15 people and companies, some with political links.

The municipality has since recovered R30m of the stolen money.

Municipality spokesperson Sifiso Zulu said from the report of the investigation by Absa, there was no basis for disciplinary proceedings to be instituted against anyone.

“The report calls for further investigations into what Absa has uncovered. The SAPS, through its commercial crimes unit, will continue with their criminal investigations while the municipality institutes a forensic investigation into its IT systems.

“It is the outcomes of these investigations that will determine whether any charges can be laid against anyone in the municipality,” said Zulu.

Zulu said it had been established that an unauthorised monitoring and remote application (Net Monitor for Employees Software tool) was installed and configured to auto start once the devices of the municipality boot up.

“This process was done using details of users known to be one of the current employees of KwaDukuza municipality and another one who left the organisation some years ago,” he said.

Zulu said it appears that the Net Monitor for Employees Network was installed on the computers in November 2024.

He said the council reaffirmed its resolution to appoint forensic investigators to investigate the activities associated with the usernames in question and determine the extent of activities performed throughout the IT infrastructure and possible relation to the fraudulent transactions.

“Council also resolved to assess its IT control environment to detect and remove any unauthorised tools applications. The assessment will include assessing the security of networks, applications and all municipal systems,” said Zulu.

Recently, provincial Cogta MEC Thulasizwe Buthelezi commissioned a forensic investigation into the affairs of KwaDukuza municipality amid the disappearance of R35m from its account.

The siphoning of R35m came barely days after President Cyril Ramaphosa mandated the Special Investigating Unit (SIU), through a proclamation, to investigate allegations of serious maladministration in the administration and delivery of three tenders in KwaDukuza.

The tenders are in connection with the appointment of a panel of contractors for road rehabilitation, electricity supply and a substation upgrade.

The SIU probe will also look at any irregular, unlawful or improper conduct by officials or employees of the municipality, its suppliers or service providers, or any other person or entity implicated between July 2018 and January 2025.

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