By Craig Kotze
The Emfuleni Local Municipality (ELM) has exposed and neutralised the “mother of all mafias”- linked not only to municipal corruption involving contracts worth possibly billions over past years but also major service delivery lapses – after an intensive contract review process at the local authority.
The ELM probe exposed the syndicate and its tentacles in many core municipal functions – and also many companies – such as roads, fleet and revenue management, revealing service delivery has and is often crippled directly by corruption.
The syndicate penetrated to the very top, allegedly including a former acting Municipal Manager and Chief Operating Officer (COO) as well as a municipal head of procurement, Ster has established.
Syndicates and patronage networks have been known to be operating within ELM for years with apparent impunity and extended into billing corruption involving many residents and especially procurement processes where high-level officials manipulated systems and official structures.
ELM’s Head of Supply Chain Management, Jason Mkhwane, has been formally suspended, ELM spokesperson Stan Gaba confirmed.
The suspension was welcomed by the Chairperson of the Golden Triangle Chamber of Commerce (GTCoC), Stefan Olivier.
Olivier praised ELM saying: “Such decisive action by ELM at high level shows it has the will to fight corruption and maladministration which is the biggest threat to Emfuleni’s turnaround recovery plan”.
“What is especially encouraging is that this investigation was initiated by ELM itself and that the will to do so seems to be there – this can only bode well for corruption-busting and better service delivery in future,” Olivier said.
A former acting Municipal Manager and COO allegedly covered up forensic reports and internal investigations over past years which, if acted upon, would have exposed crippling corruption at the heart of ELM procurement and management processes years ago, Ster has learned.
Ster is in possession of the name of the former acting Municipal Manager but will not publish it as he had not yet responded to a request for comment. He is said to have business offices in Vanderbijlpark close to ELM’s head office.
Ster’s own investigation reveals many ELM service providers are also linked to the growing scandal. Huge bribes – up to R80 000 per week in addition to big amounts to have contracts awarded – were paid to syndicate members who often collected bribes personally as “contract tax” from companies involved.
Mkhwane, the first high-level take-down in the review process is also a former councillor and regional secretary of the ANC but in a structure was recently dissolved. He is regarded as highly influential and politically-connected.
The Hawks are now investigating and further suspensions and arrests are expected.
The contracts review process was initiated early last year by ELM after Jacob Khawe, now the Secretary-General of the Gauteng ANC, was appointed as Emfuleni Executive Mayor.
It is understood that the contracts review process also showed that the ELM post of COO was unnecessary and a corruption risk and so was abolished in the new ELM management structure still to be announced.