Shamila Batohi has chastised municipalities for failing to play their part in fighting corruption, thereby putting pressure on already strained law-enforcement agencies.
“The impact of corruption is because of a complete failure on the part of the municipalities to do their work properly and ensure their systems and processes are in place and do not allow for corruption to take place,” the National Prosecuting Authority (NPA) head told MPs on Tuesday.
She was speaking at a sitting of the select committee on cooperative governance and traditional affairs (Cogta) and human settlements, water and sanitation, which was briefed by the Free State Cogta department on forensic investigations and criminal cases.
The committee also received an update from the Hawks, Special Investigating Unit (SIU) and NPA on the status of various investigations.
She told the committee that the NPA’s constrained resources were being stretched to the limit due to a lack of systems and controls in municipalities.
“If things are done properly upstream, then law enforcement would not be burdened downstream, and it costs us a lot of money.”
Committee chair Thamsanqa Dodovu said investigations were instituted in the Free State under section 106 of the Municipal Systems Act, which calls for the Cogta MEC to probe allegations of fraud, corruption, maladministration and nepotism.
“The Free State has become one of the worst municipalities in the country ... the municipalities adopt unfunded budgets, their expenditure is more than their income and there is no effective service delivery, and at the end of the day it is the poor people who are adversely affected.”
Free State Cogta HOD Mokete Duma said a number of cases had been transferred to law-enforcement agencies for further action.
Duma said in Metsimaholo local municipality reports indicated more than R56m was spent on a stadium, but it did not exist.
“Recently we went to Matjhabeng local municipality to present our findings in terms of our section 106 report and the next day I received threatening calls indicating I am trying to make sure people go to jail and if that is the case I should watch my back,” Duma said.
He said he was advised to speak to intelligence officers in the province.
Deputy national Hawks head Lt-Gen Tebello Mosikili told MPs there were 44 cases in the Free State.
“In the Nala local municipality a company was appointed to render security services in the municipality. The appointment of the company was not done properly and the municipality ended up paying R205,000 into the bank.”
Four people were charged and the case was withdrawn against the service provider as it was discovered it did nothing wrong. The matter will be in court in October.
“In Bethlehem [a] case of defeating the ends of justice was recorded ... the persons of interest who were charged include the ... legal officer in the Dihlabeng local municipality. Three people were charged and appeared in court on June 3 and [the case was] postponed to November 28.”
In Welkom five officials, including the executive director, were charged with fraud for the loss of more than R350,000 to the municipality. The matter was postponed to August 15.
Mosikili said in the Matjhabeng local municipality, also in Welkom, a senior fleet manager was charged with fraud, theft and money laundering, and appeared in court. The matter was postponed to February 2023.
A fraud and theft case was opened against one person at the Mohokare municipality. The case was postponed to September 19.
In the Nketoana local municipality a case of fraud, corruption and contravention of the Municipal Finance Management Act (MFMA) was opened. “Over R4m loss has been incurred in this matter and six people were charged. The matter has been remanded to August 11.”
A case of fraud and forgery was opened in the Setsoto local municipality involving R25m. The matter will be heard on November 14. In the same municipality a case of theft of R381,000 was opened. The matter is back in court on September 19.
The Hawks also discovered a person who was committing crimes in various municipalities in the Free State.
“The actual loss or money paid to the service provider is R35m, but the whole contract was R40m. The matter is still under investigation.”
In the Dihlabeng local municipality a loss of R55m resulted in the opening of a case of fraud and contravening the MFMA.
In Maluti-a-Phofung local municipality a case of fraud, corruption and contravention of the MFMA was opened after the municipality lost R17m.
There were two cases in the Nala local municipality involving fraud, theft and corruption involving R93m.
SIU Free State head Simangele Shabalala said: “Referrals that are made to the NPA are no longer under the SIU’s control. However, the SIU continues to support the investigations by providing relevant evidence and giving testimony if needs be.”
She said her office was working closely with the Hawks and municipalities to bring culprits to book.
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