Municipality Officials And Businessman Charged With Corruption

Four Alfred Nzo District Municipality (ANDM) former senior officials, a company director and his company, appeared in the Mthatha Specialised Commercial Crimes court on R39 million corruption charges. They were all granted R10 000 bail.

ANDM Former chief financial officer, Luyolo Fokazi (49), former acting municipal manager, Xolani Masiza (53), former supply chain management assistant manager, Zuko Mani (44), former supply chain manager, Paul Mahlasela (47), are alleged to have issued the billing tender to Xolani Bomela’s Chumani Solutions, in contravention of the Municipal Financial Systems Act (MFMA) and treasury regulations.

On 20 November 2014 ANDM invited professional service providers to bid for the installation of a billing solution, while there was an existing similar service already operational at the municipality. Only two bidders responded to the advert by the 19 December 2014 deadline against the MFMA stipulation that the closing date for the submission of bids may not be less than 30 days in cases of transactions over R10 million.

The officials were members of the Bid Evaluation Committee and Bid Adjudication Committee that sat on same closing date of the tender and awarded it to Sabata Municipal Solution, to which Chumani Solutions was subcontracted.  The tender was awarded even though the committees did not quorate.

Investigations revealed that gratification amounts ranging between R330 000 and 5000 were paid from Chumani Solutions to some of the four officials after the tender was awarded.

The court postponed the matter to 09 May for the state to furnish the defence with docket contents and set the trial date.

ENDS

Issued by:

LUXOLO TYALI: REGIONAL SPOKESPERSON: DPP MTHATHA

0735559292

ltyali@npa.gov.za

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