More than R1.6-million meant to pay for water and sanitation services was allegedly channelled to a nother bank account by Mnquma municipality officials.
The information is contained in a forensic report seen by the Dispatch.
According to PricewaterhouseCoopers (PwC), the cash-strapped municipality made four cash deposits totalling R1.61-million meant for Amathole district municipality (ADM) into a bank account opened in Johannesburg in 2012.
On November 9 2012, R698768 was allegedly paid into another account opened in October 2012 using a fake ID number.
In January 2013, more than R179100, also meant to pay for ADM’s water and sanitation services, was deposited into the same account, while two months later, two amounts of R100589 and R635468 were redirected to the account.
The matter was reported to the Butterworth police in April 2013, spokesman Captain Jackson Manatha yesterday confirmed. He said the case was transferred to the commercial crimes investigative unit in East London but he could not provide a progress report on the case.
The report implicated an official at Mnquma municipality, one of six authorised to make payments. It is alleged the official received e-mails stating ADM’s banking details had changed from Standard Bank to Absa.
It was later found the “officials” who had sent the correspondence were never employees of ADM. “Information on an investigation into the opening of the bank account at Absa and an investigation into the withdrawals in that account are still outstanding,” stated the report.
The outcome of the PWC investigation has been shared with police.
“It is recommended that the police investigation be completed prior to a decision being made as to whether to take disciplinary steps against the relevant municipality officials who were involved in the payments and the officials who authorised the relevant payments to the incorrect bank account,” states the report.
Mnquma mayor Mntuwoxolo Ganjana yesterday confirmed the incident but said no one had been charged or arrested.
“We did receive that forensic report and it was resolved that matters that need to be investigated by police should be referred to them. But we have not yet heard anything from them. We are still waiting for an update from their side,” Ganjana said.
ADM spokesman Siyabulela Makunga said the district municipality was in the dark.
“ADM has not received any formal communication in respect of this matter and as such we are in no position to comment at this stage,” Makunga said. — asandan@dispatch.co.za
Officials pay R1.6m into ‘false’ account
The information is contained in a forensic report seen by the Dispatch.
According to PricewaterhouseCoopers (PwC), the cash-strapped municipality made four cash deposits totalling R1.61-million meant for Amathole district municipality (ADM) into a bank account opened in Johannesburg in 2012.
On November 9 2012, R698768 was allegedly paid into another account opened in October 2012 using a fake ID number.
In January 2013, more than R179100, also meant to pay for ADM’s water and sanitation services, was deposited into the same account, while two months later, two amounts of R100589 and R635468 were redirected to the account.
The matter was reported to the Butterworth police in April 2013, spokesman Captain Jackson Manatha yesterday confirmed. He said the case was transferred to the commercial crimes investigative unit in East London but he could not provide a progress report on the case.
The report implicated an official at Mnquma municipality, one of six authorised to make payments. It is alleged the official received e-mails stating ADM’s banking details had changed from Standard Bank to Absa.
It was later found the “officials” who had sent the correspondence were never employees of ADM. “Information on an investigation into the opening of the bank account at Absa and an investigation into the withdrawals in that account are still outstanding,” stated the report.
The outcome of the PWC investigation has been shared with police.
“It is recommended that the police investigation be completed prior to a decision being made as to whether to take disciplinary steps against the relevant municipality officials who were involved in the payments and the officials who authorised the relevant payments to the incorrect bank account,” states the report.
Mnquma mayor Mntuwoxolo Ganjana yesterday confirmed the incident but said no one had been charged or arrested.
“We did receive that forensic report and it was resolved that matters that need to be investigated by police should be referred to them. But we have not yet heard anything from them. We are still waiting for an update from their side,” Ganjana said.
ADM spokesman Siyabulela Makunga said the district municipality was in the dark.
“ADM has not received any formal communication in respect of this matter and as such we are in no position to comment at this stage,” Makunga said. — asandan@dispatch.co.za
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