Durban - Former KwaZulu-Natal treasurer Dumisani Sipho Derrick Shabalala was sentenced to 15 years in prison by the Pietermaritzburg High Court on Thursday.
In June, Shabalala was found guilty of corruption, fraud, money laundering and contravening the Public Finance Management Act relating to his role in the so-called “Amigos case” involving the award of a contract for the supply of water purification plants in return for kick-backs.
His wife, Beatrice Shabalala, who was facing charges of money laundering, was acquitted in June.
National Prosecuting Authority KZN spokesperson Natasha Ramkisson-Kara in a statement said Shabalala’s 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 the 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,” she said.
Ramkisson-Kara said the conviction on the contravention of the PFMA in a high court reflects the pointed focus on holding government officials accountable for corruption, using this piece of legislation.
“Shabalala was sentenced to 15 years imprisonment for fraud, 15 years imprisonment for corruption, 10 years imprisonment for money laundering and five years imprisonment for contravening the PFMA. The sentences will run concurrently,” she said, adding that his bail was extended to September 13 when the court will hear his application for leave to appeal.
She said the related matter of State vs Savoi and others is remanded until November 14, when an application for a permanent stay of prosecution will be heard.
“The Director of Public Prosecutions, Advocate Elaine Zungu lauded this outcome and commended the stellar work done by the prosecution and investigating teams. This sentence indicates that even though the wheels of justice may turn slowly in such complex cases of corruption, they do turn. The NPA will continue with its mandate of rooting out corruption, especially in the government sector,” Ramkisson-Kara said.