Sakhiseni Nxumalo
Senior journalist
1 minute read
16 Jun 2022
09:16

Ex KZN Treasury head convicted for fraud and money laundering

Sakhiseni Nxumalo

The former head of KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala, was convicted for a string of criminal offences, including fraud, corruption, and money laundering.

The former head of KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala, was convicted for a string of criminal offences, including fraud, corruption, and money laundering.

Shabalala was also convicted of a contravention of the Public Finance Management Act (PFMA) in the Durban High Court yesterday.

Natasha Ramkisson-Kara, National prosecuting Authority KZN Regional Spokesperson said, Shabalala’s conviction relates to his receipt of R1.5 million, from Intaka Investments for the acquisition of ‘Wataka’ water purification plants valued at R44 million.

She said the offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi, and the company Intaka Investments.

“Shabalala then travelled to Brazil to view the purification equipment. On his return to South Africa, he wrote to then MEC Dr Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka. The process culminated in the awarding of a contract for 22 ‘Wataka’ plants. Shabalala was the chairperson of the procurement committee that awarded the contract,” said Ramkisson-Kara.

Ramkisson-Kara said the matter returns to the Durban High Court on September, 5, for sentencing proceedings.

She said Shabalala remains out on bail.

“The related matter of State vs Savoi and others is remanded until August 12, when an application for a permanent stay of prosecution is pending,” added Ramkisson-Kara.