Nzuza

EThekwini City Mangager Sipho Nzuza appeared in Durban Magistrate court on charges of Durban waste tender fraud Photo: Doctor Ngcobo/African News Agency(ANA)

R50k bail for fraud, corruption accused Durban city manager

Sipho Nzuza is accused of having been involved in a R500 million fraudulent tender scheme relating to Durban Solid Waste.

Nzuza

EThekwini City Mangager Sipho Nzuza appeared in Durban Magistrate court on charges of Durban waste tender fraud Photo: Doctor Ngcobo/African News Agency(ANA)

The city manager of eThekwini municipality appeared in the Durban Commercial Crimes Court on Tuesday for his alleged role in the near R500 million fraudulent tender scheme that contributed to the “redeployment” of former city mayor Zandile Gumede.

Sipho Nzuza was granted R50 000 bail, which was unopposed by the state.

Dodgy sewage tenders

The court heard that Nzuza extended Durban Solid Waste (DSW) tenders even though he was aware that they were irregular and that funds were depleted. This was alleged to have taken place in 2018 when Gumede was still eThekwini mayor. 

The court further heard that Nzuza had sought sides in the outcome of the tender to make sure only specific service providers were awarded the contracts.

eThekwini’s City Integrity and Investigations Unit (CIIU) was the complainant in the matter, the court heard.

Nzuza now becomes accused 17 in the ongoing matter and, along with his co-accused, faces charges of fraud, corruption, collusion, money laundering, and contravention of the Municipal Finance Management Act (MFMA).

Nzuza claims to be whistleblower

Nzuza submitted an affidavit in support of his bail application in which he said the charges relating to his arrest were only made known to him on Tuesday morning.

He briefly referred to the allegations he was facing in his affidavit, and alluded to the fact that he was, in fact, a whistleblower:

“In the ordinary course and on or about February 2018, I received copies of forensic reports. These reports related to allegations of, inter alia, fraud, corruption and maladministration with respect to the awarding of two contracts in eThekwini Municipality, mainly: the manufacturing and distribution of orange recycling bangs and the supply, delivery and construction of urine-diversion toilets to certain wards in eThekwini Municipality.”

“I, as Municipal Manager, took the view that I was duty-bound to implement several recommendations arising from such reports. This included consequences management steps such as internal disciplinary proceedings and the laying of criminal charges against various officials including political office bearers. I have been in constant communication with and provided full support and cooperation to the Hawks National Clean Audit Task Team.”

Nzuza said he would “categorically” be pleading not guilty to the charges.

“At the outset, I am the one who lodged the complaints with the police. I have always complied with all and any requests they made to me to a point of rearranging my affairs for their convenience. I pledge to continue to do so.”

He further said that the “cooperation and interaction” had taken place over almost a year and that he had assisted despite being told he was implicated in investigations.

He had also not tried to flee while being informed that he was implicated, said Nzuza. He had left South Africa after he was told he was implicated and “did not have the slightest temptation to spirit myself away and I returned to the Republic of South Africa at all times”.

City acknowledges Nzuza’s predicament

Senior state prosecutor Ashika Lucken told the court that the amount related to the fraudulent scheme was at present sitting at R430 million. 

Nzuza will be appearing again on April 16, along with Zandile Gumede and the other co-accused.

In a statement released shortly after his appearance, the municipality said it “noted” the city manager’s appearance and assured residents service delivery would not be affected.

“[City] leadership is appealing to be given space to process the matter internally and will subsequently issue a comprehensive statement during the course of the week,” read the statement.

– African News Agency (ANA); Editing by Kim Kay