Read more
Former head of KZN Treasury handed 15 year jail term
Dumisani Sipho Derrick Shabalala was convicted after he received R1.5 million for the acquisition of water purification plants.
Photo: iStock
The former head of the KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala, has been sentenced to 15 years for fraud, corruption and money laundering.
The sentencing was handed down in the Pietermaritzburg High Court on Thursday.
He was convicted for contravention of the Public Finance Management Act (PFMA) relating to him receiving R1.5 million from Intaka Investments, for the acquisition of ‘Wataka’ water purification plants valued at R44 million.
ALSO READ: Gupta associate Eric Wood allowed to travel to Europe despite fears he may not return
The offence occurred between 2004 and 2007, when Shabalala formed a relationship with Uruguayan businessman, Gaston Savoi, and Intaka Investments.
Shabalala then travelled to Brazil to view the purification equipment and on his return to South Africa, he wrote to the then MEC Dr Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka.
Shabalala was the chairperson of the procurement committee that awarded the contract.
National Prosecuting Authority (NPA) Regional Spokesperson Natasha Ramkisson-Kara said the conviction shows government officials will be held accountable for corruption.
“Shabalala was sentenced to 15 years imprisonment for fraud, 15 years imprisonment for corruption, 10 years imprisonment for money laundering and 5 years imprisonment for contravening the PFMA.”
“The sentences will run concurrently. His bail was extended to 13 September 2022, when the court will hear his application for leave to appeal. The related matter of State vs Savoi and others is remanded until 14 November 2022, when an application for a permanent stay of prosecution will be heard,” Ramkisson-Kara said.
Director of Public Prosecutions, Advocate Elaine Zungu, lauded the outcome and commended the stellar work done by the prosecution and investigating teams.
The NPA said this sentence indicates that even though the wheels of justice may turn slowly in such complex cases of corruption, they do turn and it will continue with its mandate of rooting out corruption, especially in the government sector.
ALSO READ: Eskom recovers R30m unlawfully paid to Brian Molefe’s pension fund
