One hundred and twelve witnesses and documentary evidence, including cellphone records, bank statements, vehicle tracking data, search and seizures, weighbridge slips, and invoices, form part of the state’s armory in the racketeering, fraud, corruption and money-laundering case against former eThekwini mayor Zandile Gumede and 21 others.
On Monday, state advocate Hazel Siramen in her opening address, said because the evidence was voluminous, the state had strategised how it would present its case on what it alleges was an irregular procurement process relating to the award, and extension, of a R320m city waste contract.
Among the witnesses, she said, were some councillors whose names were being withheld for security reasons.
They had been inaugurated at the same time as Gumede. They would say accused number one Gumede and accused number two, former senior ANC councillor Mondli Mthembu, had told them the Durban Solid Waste Contract (DSW) was to be renewed for the benefit of councillors and that the “time for radical economic transformation” had arrived.
It would be alleged that ANC councillors were told to go back to their wards and source details of community-based contractors (CBC’s) who would be appointed as subcontractors to the four new service providers and the ward councillors, business forums and the MKMVA, but only ANC supporters aligned to a certain faction would benefit.
Siramen said other witnesses would give evidence about the benefits the accused received directly or indirectly — and bank statements would be used to verify this.
Last year, the accused all pleaded not guilty to the 2,700 charges listed on the indictment.
Siramen, using an organigram, said Gumede, Mthembu, former municipal manager Sipho Nzuza, city deputy head of strategic and new developments Robert Abbu and deputy head of supply management Sandile Ngcobo were the main members — the top layer — of the racketeering enterprise.
It is alleged that the companies involved in the contract inflated their invoices to reflect that greater volumes of refuse were disposed of, draining the budget within a month of the award of the contract.
Below them were Nzuza’s wife Cynthia, ANC councillors Mthokozisi Nojiyeza, Sduduzo Khuzwayo and Bhekokwakhe Phewa and the companies that benefited from the contract (and their representatives), Ilanga La Mahlase, Uzuzinekele Trading, Omphile Thabang Projects and El Shaddai Holdings Group.
Siramen then detailed the role each allegedly played. Gumede — who brought cushions to soften the hard bench on which she sat with her co-accused before judge Sharmaine Balton in the Durban high court — was the “principal controller” of the enterprise, it is alleged.
Acting in concert with other members of the “top layer”, she used her office to “capture and co-opt” eThekwini ANC councillors, the administration and supply chain management to circumvent supply chain management processes in favour of business entities and individuals who were “proximate” to her, Mthembu and the ANC.
Mthembu, it was alleged, was the “executive manager” of the enterprise, while Nzuza, as the accounting officer of the municipality, abused his authority to authorise and approve the tender.
Abbu, as deputy head of Durban Solid Waste, was responsible for the management of procurement processes.
It is alleged on the instruction of Gumede and Mthembu, Nzuza appointed him as “head of special projects”, releasing him from the authority of his line manager.
He and Ngcobo signed off on a deviation from usual procurement processes. Ngcobo then sat as the chairperson of the bid adjudication committee that awarded the initial tender.
The hard drive of Ngcobo had been analysed and would show his “intimate involvement in the DSW tender”.
Cynthia Nzuza, it is alleged, was in constant contact with some of the accused.
In four months, she communicated 53 times with Ngcobo, and over five months, 90 times with Abbu.
She also communicated with the owner of El Shaddai Holdings, Craig Ponnan 23 times and with Bongani Dlomo, the director of Omphile Thabang Projects, 33 times over a short period.
She also invited Dlomo, via WhatsApp, twice to her home in Zimbali and entry and exit logs from the estate, obtained through a subpoena, indicate that several of the accused, including Abbu and Ngcobo visited the Nzuza home during and after the award of the tender, sometimes apparently staying overnight.
Gumede and Ponnan also visited.
It is alleged the companies involved in the contract inflated their invoices to reflect that greater volumes of refuse were disposed of, draining the budget within a month of the award of the contract.
The state alleges all the accused shared a “common goal” of enriching themselves from the proceeds of the payments and to create benefits for Gumede, Mthembu and the ANC.
Siramen said bank statements would show various payments in support of the charges, including how much money the municipality paid to the four service providers and who, in turn, paid money to some of the accused, entities relating to them and to CBCs and councillors.
Among the witnesses the state will call are Mbuso Ngcobo, the head of the city integrity and investigations unit who is the complainant in the matter.
He will testify he received an anonymous complaint relating to the DSW tender, how a forensic audit was initiated and Integrity Forensic Solutions was appointed to do the work.
Another key witness will be Sandile Mnquni, head of expenditure, who will testify that within a month, the budget for the new DSW contract had been exhausted, and that the annual budget for illegal dumping, about R5m, was used up by the first invoice submitted by one of the four service providers appointed under the contract.
This, he would say, was because of the “exorbitant” invoices being submitted.
The trial has been set down until March 24, and dates have been set aside for July, August, October and November this year.
At the start of proceedings on Monday, which were delayed because two accused were not in court and video link had to be established for them, state advocate Ashika Lucken told the accused’s legal representatives that judge Balton wanted them to set aside further dates in 2024 prompting Gumede’s supporters in the public gallery to shout out “hayibo”.
Most of Gumede’s supporters gathered in a tent outside the court building.
Ntando Khuzwayo, a spokesperson for Gumede’s supporters, said given the costs of transport, he did not think supporters would attend every day.
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