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Mhlathuze Water board members among six more people arrested for alleged R37m fraud

June 24, 2023
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Police on Friday announced the arrest of six more people — including three members of the Mhlathuze Water board — in connection with the alleged looting of millions of rand meant to provide water to KwaZulu-Natal residents. 

Col Katlego Mogale said investigations were continuing into alleged fraud and corruption involving R37m.

“The suspects, aged between 32 and 68 years include three Mhlathuze Water board members, the head of the legal department, an architect and the sole director of NCD investments,” said Mogale. 

They have been charged with fraud, money laundering, corruption and defeating the ends of justice.

“This is as result of an intensive investigation into allegations of irregular appointment of service providers (legal panel) without following the supply chain management protocols of the Mhlathuze Water board, as well as contravention of section 51(1) of the Public Finance Management Act, by not complying with the operational policies of the public entity. Investigations are continuing,” Mogale added. 

The six were scheduled to make an appearance in the Durban magistrate’s court.

They join a string of other accused implicated in the matter last year, including former CEO of Mhlathuze Water Mthokozisi Pius Duze and CFO Babongile Mnyandu. 

They stand accused of colluding to ensure attorney Sthembelo Ralph Mhlanga and his company Mhlanga Incorporated were appointed to the legal panel and got most of the work for a project from which they allegedly scored R37m in 20 months.

Duze, Mhlanga, Mnyandu and attorney Thabiso Khumalo were charged with fraud and corruption.

Duze and Nonhlanhla Mkhize, the director-general in the premier’s office, Mhlanga and Siphiwe Mabaso are also charged with intimidation, defeating/obstructing the course of justice and fraud for interfering with the internal probe into the alleged corrupt contract.

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