State ordered to avail evidence regarding fraud investigation into former mayor Zandile Gumede

The Durban High Court has ordered the State to make a report available that states that the forensic company that investigated the former mayor of eThekwini Zandile Gumede and 21 others, was appointed unlawfully by the eThekwini municipality’s investigation unit to investigate tender irregularities surrounding the R320 million Durban Solid Waste (DSW) tender. 

Gumede and her 21 co-accused are facing numerous charges including money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW tender. 

The forensic company is Integrity Forensic Solutions (IFS); it was outsourced by the City Integrity and Investigations Unit (CIIU) to investigate DSW tender irregularities. This is after the CIIU received a stack of documents anonymously alleging solid waste tender irregularities. After IFS investigated, the matter was handed over to the Hawks and arrests were made.

The court in 2024 was told that there was an investigation done by the City to probe the appointment of IFS. As a result of that investigation, the CIIU's top investigator was fired - this investigator is one of the crucial witnesses in this matter.   

The media is prohibited from mentioning the names of people mentioned in the order as they are State witnesses. 

Delivering her ruling, Judge Sharmaine Balton said the State should provide Gumede with the file opened and registered with the CIIU, pursuant to a ‘whistleblower’ report dated May 9, 2023, in relation to allegations of irregularities committed by the former boss of CIIU and top investigator, in the appointment of IFS, to conduct the forensic investigation in this matter. The former boss of the CIIU is a key witness in the corruption trial of Gumede. 

Judge Balton said this included, amongst other things, a whistleblower report dated May 9, 2023, the forensic investigation report, together with all annexures compiled by Masama Consulting (mostly referred to as the Masama report) and the CIIU recommendations on actions to be taken. 

Masama Consulting is the company that investigated the appointment of IFS and issued a report. 

Judge Balton said a copy of the agenda, minutes of the meeting, and resolutions of the Executive Committee and the full council of eThekwini municipality about the Masama report must be made available to the defence.

Additionally, she said a copy of the record of the disciplinary proceedings instituted against the CIIU's top investigator by the municipality, should be made available to the defense. She said a charge sheet served on the CIIU investigator and the outcome of the disciplinary tribunal must be given to the defence. 

“The respondent (State) is directed to provide the information to the applicant (Gumede) within 10 days of this order,” she said. 

Although Gumede made the application before court, the other defence counsels told the court that they support it. 

During the hearing of this application in March, Gumede’s counsel advocate Jay Naidoo SC, told the court that CIIU did not follow the supply chain management protocols in appointing IFS. 

Naidoo, who has recently been promoted to a Senior Counsel, reminded the court that the entire investigation against Gumede was politically motivated.  Apart from this order, the trial continues. 

Cape Times