The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit in KwaZulu-Natal have seized the assets of several people charged with fraud and corruption in the Mhlathuze Water Board matter.
The operation on Friday formed parts of a multi-disciplinary task team comprising of the South African Police Services (Saps), the National Clean Audit Task team of the DPCI and prosecutors.
The order against the water board accused was successfully obtained by Senior State Advocate Beverly Mothilall.
NPA Regional Spokesperson Natasha Kara said the court-appointed curator bonis was ordered to locate property to the value of R37 million.
Allegations
“This relates to allegations against the Chief Executive Officer (CEO) of the Mhlathuze Water Board, Mthokozisi Duze, Chief Financial Officer (CFO) of the Mhlathuze Water Board, Babongile Mnyandu and Attorney Sithembelo Ralph Mhlanga.
“They allegedly acted in concert with each other to circumvent the outcome of supply chain management (SCM) protocols of the water board in favour of the award of several orders to Mhlanga Incorporated (represented by Sithembelo Ralph Mhlanga),” Kara said.
Kara added Mhlathuze Water Board undertook a SCM process to appoint a panel of service providers to render legal services to the water board.
“The approved budget for the panel was unlawfully increased by 640%, by the CEO and CFO. They then unlawfully awarded tenders to the value of approximately R37 million to one law firm (Mhlanga Incorporated) and excluded 15 other law firms.
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Undue benefits
“It is alleged that the CEO and CFO of the water board also received undue benefits from the said law firm during the period that the CEO and CFO had processed/approved the award of tenders to the said firm,” she said.
Kara said the seized assets include properties and luxury vehicles.
“Immovable property located in Umhlanga Ridge, Ballito, Mtunzini Estate, Ashburton, Pietermaritzburg, Richards Bay and Cape Town. Luxury vehicles such as Range Rovers, BMW X6, Mercedes V class, Jaguar and a Harley Davidson motor cycle.”
“The order also includes assets hidden in trusts and companies, and cash in bank accounts. The assets will be held under restraint pending the outcome of the criminal matter which returns to court on 6 December 2022,” Kara said.
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