Ten Durban councillors – including ANC chief whip and exco member Stanley Xulu – raked in more than R19 million from doing business with the eThekwini municipality, according to the Manase Report.
The report was finally released to City Press by the KwaZulu-Natal Cooperative Governance and Traditional Affairs (CoGTA) MEC Nomusa Dube today following an application in terms of the Promotion of Access to Information Act (PAIA). Dube appointed the inquiry into maladministration, corruption and unauthorised expenditure by the council on April 1 2012.
The 7 051 page report found that seven contracts were awarded to councillors’ companies, a direct contravention of Municipal Supply Chain Management Regulation 44.
It found that a further 46 contracts valued at R5.4 million were awarded to council officials and an additional 124 contracts valued at R45.5 million were given to companied owned by civil servants employed by other government departments.
According to the report, the council had disciplined 38 employees for doing business with the city and should investigate 123 others and take similar action.
Xulu, who was fined half a year’s salary over the city contracts held by his Igagasi Lolwandle Trading had made a total of R12 million from doing business with the city.
The report said Xulu had told investigators he had been warned by then city manager Mike Sutcliffe that he should resign from any companies which had city contracts, which he says he subsequently did.
Fellow councillor Mthembeni Shezi was involved in two companies, Chatsworth Cleaning Services and Khethezakhe Cleaning Services, which cleared R4.1 million from city contracts. Shezi has also been fined.
The report recommended investigations against a further 15 councillors to ascertain whether information they had provided was correct as time constraints had prevented the Manase team from properly investigating them.
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