Around R4.4-million of KwaDukuza’s embezzled money was withdrawn by a company banking with First National Bank (FNB) and has not been recovered.

The KwaDukuza municipality (KDM) has since filed an urgent liquidation application against the company as it continues efforts to recover the R35.7-million stolen from its bank account on January 31.

The hearing is scheduled for March 25 at the Pietermaritzburg High Court.

So far, the municipality has retrieved the lion’s share of its missing funds, R30.8-million, with ABSA successfully recovering most of the money. However, R4.9-million remains in limbo. Aside from the R4.4-million transferred to an FNB account, R500 000 was transferred to Capitec accounts.

While ABSA assisted in the recovery, KDM says Capitec and FNB have not co-operated.

On February 19, the municipality won a High Court order that compels the banks to pay back the money unless they can show cause not to on a June 6 follow-up court date. The banks must also disclose the names, surnames and addresses of the account holders involved.

ActionSA caucus leader, Nel Sewraj, called for the Hawks assistance in the investigation after a council meeting on Tuesday.

“While full recovery is expected, KDM has already lost over R300 000 in bank interest due to the theft,” said Sewraj.

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