SIX eThekwini Municipality officials have been suspended following an investigation into fraudulent and irregular transactions amounting to R17 million.

City spokesperson Gugu Sisilana said the money was meant to be used for three housing projects in KwaMakhutha, Umlazi and eMaphephetheni. She said the officials were suspended after internal investigations revealed that two companies had unlawfully benefited from the money meant for the projects.

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“Six more officials have been issued with letters of intent to suspend. Details of how the payments were processed are part of an ongoing investigation by the City Integrity and Investigations Unit. In addition, the three housing projects linked to the fraudulent scheme have nothing to do with resettling flood victims; they are ordinary projects of the municipality’s Human Settlements Unit,” said Sisilana.

She added that while the housing projects are continuing, they will most likely be completed during the 2024/2025 financial year as there will be a budget shortfall in the current financial year. While Sisilana denied that the funds were to build houses for flood victims, the people who were displaced during the April 2022 floods in Umgababa are still staying in rented units that the City is paying for.

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