The KwaDukuza municipality has launched liquidation proceedings against a company that received R4-million linked to the theft of R35.7-million from the municipality’s ABSA account.

Municipal spokesperson Sifiso Zulu confirmed that the Pietermaritzburg High Court granted the application on March 25.

“The municipality has appointed a liquidator to initiate the liquidation process,” said Zulu.

The company in question allegedly received the stolen funds into an account held with First National Bank (FNB), prompting the municipality to file an urgent application after tracing the flow of money.

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The theft occurred on January 31, when R35.7-million was unlawfully withdrawn from the municipality’s account. Since then, ABSA has recovered about R30.8-million.

In addition to the R4-million transferred to the FNB-linked company, another R500,000 was sent to accounts held with Capitec Bank.

While ABSA has cooperated in efforts to recover the funds, the municipality said Capitec has yet to provide the same level of assistance.

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