SEDIBENG. The Emfuleni Local Municipality (ELM) acknowledges that corruption may be taking place in the institution and it is for this reason that the municipality commenced with a forensic investigation in 2013. This was revealed to Sedibeng Ster by Anita Sehlabo, ELM’s acting assistant manager of Media Relations. Serious allegations have recently surfaced that seem to show that ELM has been in serious trouble for a number of years. A statement issued by the Democratic Alliance (DA) says that they have uncovered massive organised crime within the ELM regarding the billing of electricity and water.
According to the DA’s investigation and sources familiar with the matter, at least four syndicates are involved in the bribery of municipal officials to divert payments to account-holders who then pay them. They use the following modus operandi:
1.Municipal employees are approached by residents who wish to have their arrears “taken care of.”
2.The municipal official then agrees to do so if the residents pay said official an agreed upon amount;
3.The municipal official then choose a victim based on payments they have made years before reflecting an amount close to amount owed by the residents in arrears;
4.The municipal official then reverses the chosen amount from the victim’s account and applies this amount to the account that is in arrears and it appears as if the account has been paid;
5.On the victim’s side, the reversal does not show as a payment reversal but instead reflects as additional municipal charges in the form of additional electricity / water / sewerage or rates; and
6. On the system it is reflected on the victim’s account as a “long outstanding” account on which the municipality then raise interest.
The DA says that it is in possession of visual evidence of the modus operandi in the form of a video-clip.
“We also have every reason to believe that the financial scope of this operation might be worth millions as we have been informed that our primary complainant has suffered losses of more than R1 million alone. During our investigation we have engaged with major stakeholders who have revealed that arrests are imminent and that the scope of the syndicate activity is possibly country-wide. It is clear that the ELM administration – under the stewardship of the Municipal Manager Sam Shabalala – has denigrated into an administration that is inept, inefficient and corrupt,” DA says adding that the current actions by the ELM administration provide further evidence of a municipality that has long relegated its responsibility to its residents to an afterthought.
In a statement issued to Sedibeng Ster Sehlabo says, “ELM Municipal Manager, Sam Shabalala has noted with concern the recent media reports and enquiries from different media houses in relation to the allegations of corrupt activities related to billing in the municipality and incomplete infrastructure projects, made by the Democratic Alliance (DA).
In response to these allegations, ELM wishes to acknowledge that corruption MAY be taking place in the institution. It is for this reason that the municipality commenced with a forensic investigation in 2013. This included matters related to billing, projects and other activities. The matters under investigation are sub-judice at this moment, thus ELM is in no position to reveal any information related to the investigation. The recent media reports by the DA are highly likely to compromise the investigation at hand.
We strongly condemn this move and wish to request the DA and media to allow the investigation to unfold without any further interruption. The aim of ELM is to ensure that all those culprits are ultimately brought to book.
The forensic company hired for this process is working closely with the South African Police Services (SAPS). To-date, various cases have already been opened against individuals who are alleged to be involved in the corrupt dealings. Emfuleni Local Municipality, through Executive Mayor Mahole Simon Mofokeng, shall provide a statement as soon as the investigation is completed.”
The DA says it will be writing to Gauteng Provincial Police Commissioner, Lieutenant General Deliwe de Lange, and Head of the HAWKS Mthandazo Ntlemeza requesting an urgent in-depth investigation into this matter, and will be writing to Premier David Makhura to urgently address this matter with the new Cooperative Governance MEC, Paul Mashatile.
