[Debate] (Fwd) Sutcliffe arrest soon, after secretive Mamase report? Nope

[Patrick Bond]

The Witness
*No arrests coming yet in Dbn fraud probe*
12 Apr 2012
/Sapa/

DURBAN --- No arrests are imminent in a probe into fraud and corruption 
in the eThekwini municipality, the Hawks spokesperson said yesterday.
The government's anti-corruption task team had also not yet opened a 
criminal case, said Hawks spokesman McIntosh Polela. The task team 
consisted of members of the Hawks, the SA Revenue Service, the Special 
Investigating Unit and the National Prosecuting Authority, he said.
"No case has been opened. I can say with certainty that there are no 
imminent arrests."
Polela was responding to a media report earlier this week quoting 
unnamed sources as saying arrests were imminent.
The findings of a forensic probe by auditors Manase and Associates into 
alleged fraud in the eThekwini municipality was released in February by 
co-operative governance MEC Nomusa Dube. The investigation found 
numerous irregularities in the awarding of tenders and that councillors 
were involved in entities which did business with the municipality.
The full report has not been released and the Democratic Alliance has 
threatened to go to court if it is not. During the State of the Province 
address in February, ANC speakers dismissed the DA for "desperately 
trying to find something to criticise". --- Sapa.


***


  DA protesters push for release of report

April 13 2012 at 10:13am
By Nondumiso Mbuyazi

------------------------------------------------------------------------
Copy of ND PHOENIX4

INLSA

DA protestors at Phoenix in the corner of Phoenix High Way and Redberry 
Drive on Friday morning. Picture: S'bonelo Ngcobo

The DA staged two protests in the Durban area on Friday morning to 
highlight eThekwini officials' ongoing failure to release the full 
Manase and Associates report.

The protests were held at the R102 and Phoenix Highway corner, and R102 
and Mount Edgecombe Hospital corner, said the DA's co-operative 
governance spokesman, George Mari.

DA community operations manager Anil Singh said passing motorists had 
been hooting in support of the protest.

"When the robot turns red, we hand out flyers, which have also been well 
received."

He said 15 people had gathered in accordance with the Riot Act, and they 
did not expect any more. "We're hoping to raise more awareness so that 
the full report will be released."

Since the release of the summarised report in February by KZN 
Co-Operative Governance MEC Nomusa Dube, the DA has called on the 
municipality to make the contents of the report and its recommendations 
public, to no avail.

The closely guarded forensic report on alleged corruption, fraud, 
financial irregularities and maladministration in the municipality 
implicated top officials, including former mayor Obed Mlaba; former city 
manager Michael Sutcliffe; treasurer Krish Kumar; city manager for 
infrastructure Derek Naidoo; and the head of housing, Cogi Pather.

The report also found that 10 councillors and 123 municipal officials 
had been in business with the city, and recommended that action be taken 
by the metro council. The report also found widespread irregularities 
involving the flouting of tender procedures, a lack of budgetary 
controls and the abuse of overtime.

The full report was initially expected to be tabled at a council 
executive committee meeting, but that hasn't happened.


***


  KZN's 'imminent' high-profile arrests

April 10 2012 at 10:21am
By Gugu Mbonambi

Comment on this story 
<http://www.iol.co.za/news/politics/kzn-s-imminent-high-profile-arrests-1.1272464#comments_start>

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NT_sutty0

INLSA

Mike Sutcliffe

The damning Manase report is in the hands of a team of investigators 
that probes only serious crime involving "serious money" -- and sources 
say there could be arrests within weeks.

The full contents of the controversial report on maladministration, 
corruption and fraud in the municipality, which are yet to be made 
public, are being read by officers attached to the government's 
anti-corruption task team.

This was confirmed by Hawks spokesman McIntosh Polela on Monday.

The multidisciplinary body is tasked with investigating allegations of 
fraud and corruption against high-ranking officials in the eThekwini 
municipality, including companies that fraudulently gained higher grades 
so they could trade with the city.

The team initially comprised the Hawks, the Special Investigating Unit 
and the National Prosecuting Authority, including its Asset Forfeiture 
Unit.

It has since been expanded to include the SA Revenue Service, the 
Financial Intelligence Centre and the National Treasury, ensuring there 
is no place to hide for those wishing to fleece state coffers.

The report has been handed to the team a month after the eThekwini 
municipality said it would report matters raised by the auditing firm 
with law enforcement agencies.

This included reporting former city manager Michael Sutcliffe to the 
police in an attempt to recover R1.1 million that the city says it lost 
because he allegedly failed to timeously report fraud and corruption.

The report also implicated top politicians, including former mayor Obed 
Mlaba, and senior officials including city treasurer Krish Kumar, 
infrastructure manager Derek Naidoo, and housing head Cogi Pather, who 
has since resigned.

The report also found that 10 councillors and 123 municipal officials 
had been trading with the city, and recommended that action be taken 
against them.

The Manase probe was commissioned a year after Durban accounting and 
forensic investigations firm Ngubane & Co called for disciplinary action 
and further investigation into the city's financial affairs.

The report was compiled by Ngubane & Co after its investigation was 
dismissed by Sutcliffe and never made public.

The company had found that the awarding of the R6.3m Chatsworth Housing 
Rehabilitation project to Dr Khumalo Construction was irregular because 
the bid specification and evaluation committees had not met to approve 
the bid specifications and to evaluate the tender.

The supply-chain management policy was therefore, contravened.

It was also found that the award was beyond the Construction Industry 
Development Board grading of the construction company.

The board was established in 2000 to provide leadership to stakeholders, 
stimulate sustainable growth, and to reform and improve the construction 
sector for effective delivery and an enhanced role in the economy.

It also grades construction companies according to their capabilities. 
Any construction-related tenders offered by any government arm, 
including municipalities, have to be awarded to contractors that are 
graded and registered by the board.

A source, who cannot be named, said the first target of the 
investigation could be companies that had done business with the 
municipality, but that appeared to have obtained their grading from the 
board fraudulently.

The latest developments come amid mounting pressure from opposition 
parties for the municipality to make the full report public.

DA caucus leader Tex Collins said his party would lodge a Promotion of 
Access to Information Act application with the Durban High Court this 
week to gain access to the full report.

In February, the council released an abridged version of the report to 
the media and councillors. It is believed that only some officials in 
the office of Co-operative Governance MEC Nomusa Dube, mayor James 
Nxumalo and city manager S'bu Sithole have been privy to the full report.

Municipal spokesman Thabo Mofokeng said on Monday: "In compliance with 
council resolutions, some matters had to be reported to the police."

He would not be drawn on the matter involving Sutcliffe, saying only 
that "all" relevant matters had been reported to the police.

He said the city would await the DA's court application before 
commenting on that matter.

The Mercury was unable to reach Sithole for comment on Monday.

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