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By Manyane Manyane 
3h ago
It also “irrationally” facilitated the retrospective reinstatement of the dismissed member of the South African Municipal Workers Union (Samwu), Victor Totolo, leaked confidential information to the media and mobilized the workers against their employer.
This is in accordance with the preliminary findings of a damning forensic report compiled by Open Water Advanced Risk Solutions (Pty) Ltd (Open Water). The company was appointed by the Minister of Human Settlements, Water and Sanitation, Lindiwe Sisulu, in February this year to investigate the alleged abuse of R230 million in drought relief funds by the Amatola Water Board.
He investigated the alleged acquisition irregularities at Amatola Water and the abuse of millions destined to projects to harvest rainwater, the use of tanker trucks and the drilling of wells, among others.
Zitumane on Friday rejected the forensic report as a “smear campaign” designed to remove her from her post.
This occurred when another forensic report made adverse findings against Zitumane’s Limpopo counterpart, Phineas Legodi, CEO of Lepelle Northern Water (LNW). He has been charged with fraud, corruption and bribery in connection with a R40 million debt collection offer made to a service provider called Phembane.
According to the Amatola Water report, Zitumane awarded R60 million in drought relief contracts to 18 service providers at inflated prices. It approved a rate of R4310 per trip, while municipalities like Buffalo City paid R3200 for the same service.
The report found that Zitumane breached his fiduciary duties in that:
She provided, broadcast, or caused Amatola Water’s confidential information to be released to the media for publication to the detriment of the water utility’s reputation;
He used the resources of Amatola Water to lobby, mobilize and incite the union against the junta for personal gain disguised as genuine labor demands;
She authored a series of correspondence in aid of Samwu’s efforts to embark on a strike over historical demands as a result of which she again prioritized the budget to fulfill the promise made to the union;
Irrationally it facilitated the retrospective restoration of Totola with all the benefits despite the internal and external legal forums that confirmed the decision to dismiss him;
Totolo’s retrospective re-election with benefits lacks any legally plausible justification and may amount to an unnecessary commitment of Amatola Water funds.
The report added: “Ms. Zitumane admitted that she provided the information to the union and wrote correspondence that the union used to make demands on the organization, but that it was to create the pretext with the union that she supported them while, from In fact, she maintained the interest of the organization. ”
On April 28, Zitumane also deposed an affidavit in which he maintained his innocence and blamed his problems on Sisulu’s adviser Mphumzi Mdekazi and former Amatola Board chairman Nokulunga Mnqeta.
He accused Mdekazi, who has been described by some as a “destroyer and disruptor of corruption” in the department, of designing his firing because he had resisted his alleged attempt to direct offers to his cronies.
“The purpose of the affidavit is to present facts to illustrate the corruption and extortion that has been committed against me to advance the interests of Mr. Mphumzi Mdekazi on specific projects that will be detailed in this affidavit,” said the Zitumane affidavit.
He claimed that he had met with Mdekazi on August 12, 2019, in a meeting organized by Mnqeta to present the status of Amatola Water and present the board’s report “on the irregular expenses incurred by the board.” Zitumane further stated that Mdekazi allegedly promised to guarantee that funds would be released for sand mining projects in exchange for R35 million.
Mdekazi denied wrongdoing on Saturday and said Zitumane was desperately trying to divert attention from the irregularities discovered by the forensic report.
He said he had met Zitumane twice in his life: at a meeting he referred to and again at an airport in the Eastern Cape when traveling with his mother and wife.
“She came to greet my mother and my wife and left. What I am sadly picking up on your desperation and diversionary tactics is that I am even responsible for both witchcraft and bad weather. The reason for this is because she forgot that, it is the board that employs and is the one that shoots or suspends, “said Mdekazi.
Former Amatola Board President Mnqeta also rejected Zitumane’s charges in her own affidavit filed on May 7, 2020.
“Zitumane was placed in a precautionary measure under the commission of a forensic investigation by the Minister a week ago. In addition, I learned of a so-called affidavit deposed by Ms. Zitumane in which she claimed that she met with Mr. Mdekazi on August 12, 2019, at a meeting that I organized myself.
“This statement is incorrect and presented in a way that creates the impression that I was instrumental in creating or searching for a patronage network for fraudulent purposes,” Mnqeta said in his affidavit.
Compiled by Chartered Accountant Dr. Len Konar, from Outsourced Compliance and Risk Assessment (ORCA), the forensic report on allegations of wrongdoing at LNW in Limpopo painted an image of a totalitarian management style of Legodi, the management inertia , fraud and corruption, as well as collusion between the state company and service providers.
He found that contracts such as the Giyani Project (R2 billion), Gobela Consulting, CS Security and Falaaz Trading were awarded to service providers “who do not meet the minimum bidding requirements, charging exorbitant prices supplemented by inadequate technical knowledge and skills. contributed significantly to the extreme hardship of LNW’s financial situation. “
The report questioned the contract between LNW and Phembane, a “highly conflicting” firm, designated to collect a R507 million debt from the Municipality of the District of Mopani (MDM).
“The agreement seems never to have been presented to the Board for approval; accordingly, the probability of fraud, corruption, bribery and bribery must be determined between Phambane, the LNW Executive Director, the LWN legal advisor and a few others, including the MDM manager. “
He recommended Legodi’s “immediate suspension” along with LNW’s financial officer and legal adviser, respectively. He called for the appointment of an outside interim CEO to run LNW while the trio’s disciplinary hearings were being processed.
Legodi said yesterday that the ORCA report was a “draft” that had yet to incorporate his version of events.
“I am still busy responding to the issues raised. The deadline is May 12. I am surprised that the report is in the hands of the media before I can incorporate my comments and finalize it. In other words, it is premature that I can be publicly involved in the report, which is still a draft. It wouldn’t hurt to wait until it’s finished and reflects my impressions, ”said Legodi.
The report comes a few months after the Special Investigation Unit (SIU) raided LNW headquarters in Polokwane and left the premises with official documents and computer hard drives.
Sputnik Ratau, a spokesman for the Department of Human Settlement, Water and Sanitation, said the forensic reports by Amatola and Lepelle concluded the first phase of investigations into the mismanagement allegations announced by Sisulu during their budget vote.
In addition, there are ongoing investigations related to irregular spending, mismanagement, and governance issues at the Amatola Water Board in the Eastern Cape, as well as the North Lepelle Water Board in Limpopo province. The Amatola CEO is currently on pre-trial suspension to allow investigations to continue, ”said Ratau.
The ANC Women’s League (ANCWL) defended Sisulu on Saturday, saying it was the victim of a smear campaign for taking action against the “management and governance problems” that plagued the affairs of Amatola Water and Lepelle Northern Water, respectively.
“The tactic of tarnishing the image of Minister Sisulu by bringing it before the courts of public opinion is a cowardly approach. We challenge those who have evidence that Minister Sisulu is acting illegally or is involved in any fraud and corruption to come close to law enforcement agencies, ”said ANCWL Secretary General Meokgo Matuba.
Independent sunday
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