A long-drawn-out probe by the Hawks’ Serious Corruption Investigation team has resulted in the conviction of a former Head of Department in the Kwazulu Natal, Provincial Treasury on Tuesday for water purification plants tender corruption worth millions of rand.
The matter is from a period May 2005 to June 2006, where the former HOD Sipho Derrick Shabalala circumvented supply chain procedures and facilitated the procurement of about twenty water purification plants known as ‘Watakas’ which were installed at the Municipalities in KZN by the Department of Local Government and Traditional Affairs at a cost of R44 million.
This was reportedly aimed at alleviating water shortages in the rural areas. The plants were installed by a Company called Intaka Investment (Pty) Ltd Holdings from Cape Town during 2007.
It was the State’s case that the former HOD unlawfully and with intent to defraud, falsely stated that the waiver of normal procurement processes was necessary as he deemed the installation an emergency. This paved the way for the contract to be awarded to Intaka Investment (Pty) Ltd Holdings, a sole bidder, hence he faced charge of contravention of the Public Finance Management Act (PFMA).
The Hawks’ investigation revealed that just over R1.million was paid to Kuboni Shezi Trust Account in 2007, from which it was transferred into the Salamax Trust account which Sipho Derrick Shabalala and spouse were sole shareholders. Thereafter the funds were transferred to different bank accounts and used for self-enrichment.
The couple was arrested on 20 October 2010 and stood trial in the Durban High Court culminating in the recent conviction.
The court has however acquitted the wife on the money laundering charge. Sipho Shabalala has been convicted as charged for counts of fraud, corruption, money laundering in contravention of the Prevention of Organised Crime (POCA) Act and contravention of section 86 of the PFMA Act.
The case is remanded to 5 September 2022 for sentencing. Asset Forfeiture Unit (AFU) is busy with a forfeiture order of R7 000 000-00 against the accused.
The trial for the main “Intaka” case will proceed on 12 August 2022.
