Statement Read At the IFP News Conference
on the IFP’s Call for Public Protector to Probe Corruption Reports
in Umkhanyakude, Ethekwini, Mandeni and Zululand Municipalities

By: Mbongeleni Joshua Mazibuko

IFP Deputy National Spokesperson

Tuesday, 01 October 2013:  IFP Head Office; Durban



Ladies and gentlemen of the media; may I begin by thanking you very much, on behalf of the IFP, for responding positively to our invitation to this news conference.


We have convened this news conference because we are mindful of the responsibility which history has placed on our shoulders as the IFP, to act as watchdogs on behalf of all South Africans and future generations.


It is in response to this unshakable responsibility that we have invited you so that we report to you and the whole country that we have very disturbing reports which – if they are true - point to the fact that there is a deep rot in our Province. These reports implicate 5 Municipalities and they are as follows:


1. UMKHANYAKUDE MUNICIPALITY: Reports indicate that:


a) This Municipality’s Municipal Manager, Mr PS Gwacela, who is reported to have been relieved of his duties, spent about R7,9m purchasing 7 Water Tankers; yet these tankers have never been used. He spent R70 000 in registration fees and R30 000 for number plates, despite that the convention is that the registration and purchase of number plates becomes the responsibility of the service provider. We gather that the trucks have now been towed back to Tata Richards Bay


One other very serious allegation is that “the service providers of water tankers are being paid by the municipality in collusion with some staff members within the municipality for services that they have never performed.”


b) The ex-Municipal Manager (Gwacela) authorised upfront payments to a company which was supposed to supply the water pipes. He did this despite that the MFMA does not allow this. When asked why he went against the MFMA he cited pressure from some councillors. However, the councillors denied any knowledge of that transaction.


c) A number of other companies were paid in advance, and no written contracts were entered into with them.


d) A certain Mr Zenzo Masuku’s Consulting firm – Bonakude Consulting – was appointed without competitive bidding and the Municipality ended up double-paying Masuku as the Chief Financial Officer and for consulting services. It is further alleged that Masuku is still with the Municipality despite the new Chief Financial Officer having been appointed.


Further, it is alleged that Masuku has worked in the following Municipalities, all of which have allegedly experienced financial mismanagement during his tenure:

- Nkandla, uMhlabuyalingana, Big Five False Bay, Abaqulusi and Zululand District


e)  Another consulting company called Minathlou Consulting was appointed without competitive bidding


f) On top of all these allegations is the Final Management Report of the Auditor-General dated 30 June 2012 which lists 11 “contracts (which) were awarded without following the competitive bidding process.”


g) This Municipality is also shown to have failed to spend the totality of the Municipal Infrastructure Grant which was earmarked for tackling the water shortage problem in that district. They now run the risk of forfeiting about R120m of MIG Fund. This, despite the fact that multitudes of the residents of the district do not have access to clean water.   We are informed that these issues were reported to COGTA.


2. ETHEKWINI MUNICIPALITY: our information indicates that:


There is a company known as Enforce Guarding (PTY) LTD which was awarded a contract by eThekwini Municipality without proper processes having been followed. This company is also alleged to be owned by COGTA MEC’s fiancé.


3. MANDENI MUNICIPALITY: our information indicates that:


In 2009, Mandeni Municipality did not renew the contract of Globe Tech Security Company and instead brought in Enforce Security Company. What made that move suspicious was that, whereas Globe Tech Security Company was paid R60 000 per month, Enforce Security Company’s payment was about 4 times more – about R260 000 per month; this despite that the new company is alleged not to have had enough necessary resources to execute its mandate.


This security company is alleged to be the same company which was awarded a contract by eThekwini Municipality


4. ZULULAND MUNICIPALITY: our information indicates that:


On two occasions, Globe Tech Security Company won a tender process to provide security services in the Zululand District Municipality and on both occasions the Mayor, HW Mrs VZ KaMagwaza Msibi overturned the due process and she insisted that she wanted a company called ZKZ Security, owned by Inkosi Zungu to be awarded that tender.


In fact the same fate befell Globe Tech Security when the NFP took over Ntambanana Municipality


Call for Public Protector’s Intervention.

As you can see ladies and gentlemen, these are serious allegations. We do not know if they are true or not; and we do not in any way wish to apportion blame to anyone. But if they are true, they are a serious indictment, not only against the political leadership of all the cited Municipalities, but also against the relevant MEC.


We therefore believe that it is imperative that they are thoroughly probed so that the truth will come out. It is the IFP’s view that – regardless of any other investigation that may be going on, if any – the Office of the Public Protector must come in urgently to investigate these allegations so that the people of KwaZulu-Natal will know the truth.


It is against this background the IFP has written to the Public Protector and forwarded the documents in our possession as well as any other relevant information so that her Office will take the matter forward.


We promise to keep you abreast of developments.




For Further Information:

M. Joshua Mazibuko

IFP Deputy National Spokesperson

083 992 6135