A forensic investigation by Blitz Forensics has revealed that the cash-strapped Uthukela District Municipality, which is under administration, was forced to pay R11 million to repair water pumps that were never broken in the first place.
This is contained in a report that was tabled behind closed during a council sitting last week.
African Times was eventually able to obtain a copy of the 40-page report which lays bare how two officials flouted all municipal procurement rules to award the dubious tender.
The investigation was undertaken after the DA, a coalition partner of the Inkatha Freedom Party (IFP), blew the whistle that water pumps supplied by APE Systems at Ezakheni water station in Ladysmith were not damaged during the April 2022 floods as claimed by the officials.
Indeed Blitz Forensics confirmed that in its report. The tender was awarded to a company called RASP Consultants CC.
“APE Pumps sent reports as proof that pumps were still running after the April 2022 floods. The investigation team was informed by Mr Peter Robinson of APE Pumps that the pumps were not damaged during the floods, and Pumps C, D, E and B were still serviceable during the April 2022 floods in terms of the SLA. We did confirm that repairs were undertaken by RASP.
“RASP undertook repairs on and around 11 April 2022 and replaced the pumps at Ezakheni = Water Plant. RASP submitted an invoice for the work undertaken on 13 May 2022.Ezakheni Municipality officials did not provide the investigation with a report confirming the pumps were damaged to justify the repairs undertaken by RASP,” read part of the Blitz Forensics report.
The report also says there is no documentary evidence that indicates that the Municipal Manager at the time, Mpumelelo Mnguni, approved the expenditure as “deviation”.
The payments to RASP were approved even after Mnguni smelled a rat and refused to sign them off together with the then Administrator, Nathi Madondo.
“It was noted and observed that there was no transparent process for the awarding of work
to RASP that was conducted at Ezakheni, this was in noncompliance with Section 217 (1) of
the Constitution of South Africa and paragraph 36 (1) of the SCM Policy of the Municipality
stated above.
“There is no documentation indicating authorisation for RASP to undertake the repair work. RASP undertook a project at Ezakheni in April 2022 without a signed contract and appointment letter. There is no documentary evidence that indicates that the Municipal Manager approved this expenditure as a “deviation”.
“The payment certificates for RASP were approved by Mr Zikalala despite Mr Mnguni, Acting Municipal Manager not ratifying it,” added the report.
Among the recommendations was that the officials implicated be hauled over the coals and criminal cases be opened with the police and get RASP blacklisted.
“The Municipal Council should ensure criminal proceedings are initiated pursuant to Section 34 of PRECCA Act no.12 of 2004, leveraging the available evidence of maladministration and fraud uncovered during this investigation, in accordance with Sections 10,12, 12 and 13 of the PRECCA Act. That RASP be included in the list of blacklisted suppliers by the National Treasury for providing a service without a purchase order and a letter of award.”
