Savoi Co-Accused Convicted Of Fraud And Money Laundering
The former Head of KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala, was convicted of fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA) in the Durban High Court yesterday. His conviction relates to his receipt of R1.5 million, from Intaka Investments for the acquisition of ‘Wataka’ water purification plants valued at R44 million.
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.
The matter returns to the Durban High Court on 05 September 2022, for sentencing proceedings. Shabalala remains out on bail. The related matter of State vs Savoi and others is remanded till 12 August 2022, when an application for a permanent stay of prosecution is pending.
Issued by:
Natasha Ramkisson-Kara
NPA Regional Spokesperson
KZN Division