The KwaDukuza Municipality (KDM) won interim relief against two banks withholding millions in embezzled funds yesterday.

Issued in the Durban High Court, the interim order compels First National Bank (FNB) and Capitec to return the missing money, unless they can show cause not to on a June 6 follow-up court date.

According to KDM spokesperson, Sifiso Zulu, FNB and Capitec were the only banks that did not agree to repay their share of R35.7-million embezzled from municipal coffers on January 31.

The money was fraudulently transferred to 15 different accounts in two bulk payments over just 45 minutes.

After flagging the payment as suspicious, KDM’s bank, ABSA, undertook an investigation.

Zulu said that “over 80% of the money” had been recovered, leaving only the aforementioned FNB and Capitec amounts.

In an attempt to recover the funds, KDM submitted an urgent application in the Durban High Court on Monday and the case was heard yesterday.

As part of the interim order, FNB was ordered to preserve its portion of the funds – R4.412-million – pending the finalisation of the order and potential repayment on June 6.

“FNB is also directed by the order of the court to furnish KDM with the full name, identity or registration number, and contact details of its client holding the account to which the money was transferred,” said Zulu.

Capitec were similarly directed to give further details, although the exact amount was not included in the order.

It is understood that the amount was not included because Capitec had been partially co-operative during the investigation and had previously shared such details.

The costs of the application will be borne by any party that opposes the relief sought by KDM.

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