NO arrests have been made in the fraud cases opened by the Hibiscus Coast Municipality and Ugu District Municipality. The two municipalities have been accused of purposely stalling with the investigations.
A few months back both the HCM and Ugu municipalities announced that they were investigating two counts of fraud, where officials were suspected of soliciting funding from financial institutions by furnishing fraudulent information and forging signatures.
A source has informed the Herald that both municipalities had known about the fraud cases at an early stage, and both municipal managers were asked not to disclose the information.
“This saga was known by both municipalities at an early stage, but the internal legal team was asked not to act on this information, as the allegations involved high profile ANC leaders. Managers were told to sweep the allegations under the carpet until further notice,” said the source who asked not to named.
The source also claimed that when HCM manager, Max Mbili, found out about the fraudulent document, he was asked to find a ‘solution’ by the ANC secretary Mzwandile Mkhwanazi.
“But because of the pressure from other party members, the alleged fraudster was asked to resign. But we are aware that he has been deployed to Ezinqoleni Municipality as the head of Economic Development section,” he said.
It is alleged that when the official agreed to resign from HCM, both Ugu and HCM municipal managers were advised by the ANC to set up a media briefing to inform the media about the ‘investigation’, as the rumours had started spreading.
The source also claims that both municipal managers were asked not to follow up with the investigations in the hope that the investigations would eventually disappear.
HCM spokesman Simon Soboyisa said the allegations were unfounded. “Once the matter was brought to the attention of the HCM municipal manager, he referred the matter to the internal audit unit for investigations,” said Mr Soboyisa.
He added that once the internal audit unit had submitted a report to the municipal manager, an official notice of the intention to suspend was given, which was followed by the official’s resignation.
“The official was a junior and there was no way the issue would have been discussed with the secretary of the ANC,” said Mr Soboyisa.
“The municipal manager acted according to procedure and was not advised by the ANC,” he said.
ANC spokesman Sipho Dlamalala has refuted the allegations that the ANC would shield any corrupt officials.
“The allegation that the municipal managers were asked not to follow up the investigations are not true,” said Mr Dlamalala. He also denied that one of the officials has been redeployed to Ezinqoleni.
“As we have stated in our press statement, the party wishes to inform all members of the public that the party is committed to a clean government and prepared to support all efforts aimed at combating fraud and corruption in our municipalities because fraud and corruption retard service delivery,” he concluded.
