AFU SEIZES ASSETS OF MHLATUZE WATER BOARD ACCUSED
Today, the NPA’s Asset Forfeiture Unit in KZN, as part of a multi-disciplinary task team comprising of SAPS, the National Clean Audit Task team of the DPCI and prosecutors, seized the assets of several accused persons charged with fraud and corruption in the Mhlatuze WaterBoard matter. The court-appointed curator bonis has been ordered to locate property to the value of R37 million.
This relates to allegations against the Chief Executive Officer (CEO) of the Mhlatuze Water Board, Mthokozisi Duze, Chief Financial Officer (CFO) of the Mhlatuze Water Board, Babongile Mnyandu and Attorney Sithembelo Ralph Mhlanga, who allegedly acted in concert with each other to circumvent the outcome of supply chain management (SCM) protocols of the water board in favour of the award of several orders to Mhlanga Incorporated (represented by Sithembelo Ralph Mhlanga).
Mhlatuze Water Board undertook a SCM process to appoint a panel of service providers to render legal services to the water board. The approved budget for the panel was unlawfully increased by 640%, by the CEO and CFO. They then unlawfully awarded tenders to the value of approximately R37 million to one law firm (Mhlanga Incorporated) and excluded 15 other law firms. It is alleged that the CEO and CFO also received undue benefits from the said law firm during the period that the CEO and CFO had processed/approved the award of tenders to the said firm.
The assets seized today include: immovable property located in Umhlanga Ridge, Ballito, Mthunzini Estate, Ashburton, Pietermaritzburg, Richards Bay and Cape Town. Luxury vehicles such as Range Rovers, BMW X6, Mercedes V class, Jaguar and a Harley Davidson motor cycle. The order also includes assets hidden in trusts and companies, and cash in bank accounts. The assets will be held under restraint pending the outcome of the criminal matter which returns to court on 06 December 2022.
The order was successfully obtained by Senior State Advocate Beverly Mothilall.
