Former Mnquma Local Municipality infrastructure director
Zanemvula Ngovela, Kubeshin Pillay and Soundrarajan Pillay, sole directors of
companies with their business entities appeared in Mthatha Specialised
Commercial Crime Court, on Tuesday, November 30 for allegations of fraud and
contravention of the Municipal Finance Management Act (MFMA).
During the 2011 financial year, Mnquma Municipality planned,
funded, and managed road projects.
According to the statement, the Infrastructure Directorate
initiated the tender process for the construction and revitalization of
Butterworth Township Roads, which was awarded to Siva Pillay Constructions that
was a joint venture of two merged companies, Pillay Constructions and Brainwave
Projects.
“The sole directors to the merged companies allegedly
submitted falsified tax certificates and also fraudulent Construction Industry
Development Board (CIDB) certificates testifying on projects never done thus
purporting themselves to be competent for the job to be done. In executing the
aforementioned tender, the municipality had to confine itself within the
Legislative Preferential Procurement Policy
Framework Act,” the statement read.
Ngamela Pakade as the municipal manager at the time
allegedly allowed the process to go through without ensuring that the aforesaid
relevant policy has been complied with, the statement added.
“The municipality had budgeted R18 million but under their
watch, the expenditure dramatically went up to the amount of R36 million thus
doubling the budget amount. The municipal office thus ran at a loss of R18
million.”
“A complaint was thereafter lodged with the Hawks for
investigation which resulted in the arrest of Pakade, who is the current King
Sabata Dalindyebo (KSD) municipal manager on November 5, 2021. He made a short
appearance in Mthatha Specialised Commercial Crime Court and was released on a
R20 000 bail.”
The accused joined Pakade in court and were granted bail of
R10 000 each. The matter was remanded to January 18, 2022 for legal
representation.
