Durban – The eThekwini Municipality has suspended officials linked to purportedly irregular and fraudulent transactions totalling R17 million.
‘The Mercury’ reported last week that millions of rand destined for a housing project had “gone missing”. In its report, sources had estimated to the newspaper that the funds involved could be as high as R32m.
But municipal spokesperson Gugu Sisilana said in a statement on Sunday that the amount was not R32m.
“The money also did not ‘disappear’ or go ‘missing’ as the article implies but it was fraudulently transferred. The amount involved in the scheme is R17 million.
“The officials were suspended after the municipality, through its internal control processes, last month uncovered an elaborate fraudulent scheme in which R17 million was paid to two companies. Six more officials have been issued with letters of intent to suspend,’’ she said.
She added that details of how the payments were processed are part of an ongoing investigation by the City Integrity and Investigations Unit.
‘The Mercury’ had reported that the money was meant to rebuild homes for the flood victims but the City has said it was meant for other housing projects being undertaken by the municipality Human Settlements Unit in Umlazi T-Section, eMaphephetheni and in KwaMakhutha.
“The three housing projects are continuing, however, there will be a budget shortfall in the current financial year which means their estimated completion will now be during the 2024/25 financial year.
“EThekwini remains committed to rooting out fraud and corruption wherever it rears its ugly head. This is done through continuous tightening of internal control processes and through taking harsh action against officials implicated in wrongdoing,” it said in a statement.