Ugu District Municipality: Missing R300m fraud case closed

Naidoo was informed via SMS from the Commercial Crimes Unit of Saps-Durban, that the investigation had been closed as ‘false – yielded no crime committed’.

Naidoo, in his capacity as the accounting officer, opened the case in November 24, 2020.

On the same day he was served with a letter advising him of his precautionary suspension from the municipality, a decision made at a council meeting.

Believing the matter was of public interest, Naidoo handed a copy of the full forensic report to Saps to investigate.

Police spokesman Colonel Thembeka Mbele confirmed a case of fraud was opened at Port Shepstone police station.

“The docket was transferred to the Durban Central Commercial Crime Investigation Unit for further investigation, and the docket was subsequently closed,” she said.

The registering of this case came on the back of a 236 page report commissioned by the provincial Cooperative Governance and Traditional Affairs (Cogta) on receipt of information from whistle blowers with regards to the municipality.

The report linked senior officials, the municipal manager, and firms contracted, to Ugu to irregular expenditure, amounting to millions of rands.

It also alleged fraudulent conduct, financial misconduct and the payment of ghost employees.

The report also allegedly found, among other things, that a senior official siphoned R300-million from the municipality’s bank account.

Now, five months after he has parted ways with the municipality, Naidoo says the results of the investigation by the commercial crimes unit are welcomed.

He said the findings provided clarity on a matter that made national headlines and caused unnecessary reputational damage to both himself and his family.

“The past two years have been very difficult for both myself as an individual and my immediate family, as one had to navigate between all the allegations that were put out in the open,” he said.

“It is very disconcerting and worrisome that an allegation as serious as this one can be made in the public domain without any evidence being present to support the allegation.”

Naidoo explained that the well-being and safety of both himself and his family was always in question.

“There were about 30 employees, who during working hours, used municipal vehicles and went to my home to threaten my family,” he said.

“After consultation and careful consideration, with the well-being and safety of my family being the priority I regrettable decided to leave the employment of Ugu District Municipality having been cleared of any fraud and corruption.”

An amicable settlement equivalent to six months’ salary was concluded between the municipality and Naidoo.

He wished his former colleagues and employees well.

“To all the hard-working, law abiding and honest employees, I urge you to continue with your commitment and hard work, without fear or favour.”

Naidoo said he had found himself in a situation that he would not wish on anyone, with his credibility, dignity and standing in the community being questioned.

“Thankfully, there were those who adopted an unbiased, open approach in this matter and I thank them for their support and belief in me.”

Ugu acting spokesman Mondli Ngcobo said the matter had been noted.

The South Coast Herald is awaiting comment from Cogta.