Over eighty percent of the R35.75-million stolen from KwaDukuza Municipality‘s (KDM) account has so far been recovered.

This according to a report presented in a special council meeting on Tuesday, confirming there remains around R7-million outstanding.

KDM spokesperson, Sifiso Zulu, said the money has not been fully recovered because two banks are not cooperating.

“In this regard, the municipality has appointed a senior counsel who submitted an urgent application in the High Court on Monday. The matter will be heard on Wednesday,” said Zulu.

He said the investigation by ABSA is ongoing and that the outcome will be made public once complete. It is understood that the report will be presented to council on Friday, which will include further details on the people involved.

Aside from the bank’s investigation, council previously resolved for the matter to be reported to the Department of Co-operative Governance and Traditional Affairs, National Treasury, the Auditor-General of South Africa, the Special Investigating Unit and the Hawks.

“It was also agreed that reports must be received from the IT department of the municipality and MUNSOFT (financial management systems service provider) and ABSA.

Council resolved that the forensic investigation must be comprehensive, taking into account all the reports referred to above. Reports in this regard are to be provided to council on a fortnightly basis,” said Zulu.

The fraudulent transfers were made in just 45 minutes on January 31, with 15 individual transactions made in two bulk payments. ABSA flagged the payments and confirmed with municipal officials that they had not been approved.

Democratic Alliance caucus leader, Privi Makhan, said internal controls that allowed the fraud to take place needed to be reviewed.

“There are multiple components and complexities to this breach and we will ensure the call for consequence management and the rule of law is upheld.”

ActionSA caucus leader, Nel Sewraj, criticised the administration’s lack of accountability, suggesting internal complicity.
“We urge that the investigation be conducted externally by the SIU and Hawks.

The extent of administrative compromise within the municipality demands independent, specialised oversight to ensure a thorough and impartial inquiry,” said Sewraj.

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