ANC Amathole regional secretary Teris Ntutu is one of many believed to have benefited from illicit Mnquma municipal tenders.
The Daily Dispatch has seen documents showing amounts ranging from R15000 to R100000 transferred to Ntutu’s bank account by businessman Sive Nombembe’s company Big Event Boy.
Nombembe and Mnquma local municipality manager Sindile Tantsi were last week arrested by the Hawks in connection with fraud and corruption charges.
Nombembe was granted R35000 bail but Tantsi’s bail application was delayed by his hospitalisation.
The charges relate to a refuse bag tender worth R10-million awarded to Big Event Boy.
Packets of refuse bags, which retail for R20 to R30, were sold to the municipality for R185 to R192.
Immediately after payments were made to the company, outgoing payments were made to individuals under code names.
The Hawks have now extended their investigation to include Nophemba Holdings, the company that organised the popular Mnquma Jazz Festival, and IPM plant hire. Nophemba Holdings is owned by ANC member Nkosifikile Gqomo and IPM by Babalo Madikizela, Alfred Nzo’s ANC regional treasurer.
All the contracts relating to the probes were awarded by Tantsi.
Speaking to the Daily Dispatch on Sunday, Hawks national spokesman Brigadier Hangwani Mulaudzi confirmed the investigations.
“The investigations look at a number of municipalities in the Eastern Cape. In Mnquma, all the transactions done in the period we are investigating will be looked at.
“That means that no single person or company will be spared.”
The Dispatch has seen documents detailing several 2015 payments to Ntutu’s account from Big Event Boy. They include:
lOne on July 10 of R35000;
lOne on July 12 of R35000;
lOne on July 13 of R15000; and
lOne on November 7 of R100000.
Ntutu had not responded to Dispatch questions by deadline.
Big Event Boy is also alleged to have paid thousands of rands into accounts with “code names” such as “ANC”, “Sasco”, “Telkom” and others. It has emerged that some of these allegedly referred to Ntutu.
Meanwhile, Gqomo was awarded a R2.25-million tender by the municipality for the Mnquma Jazz Festival. However, a document signed by Tantsi and Gqomo shows the municipality eventually approved more than R3-million. “It is with great pleasure to inform you that you have been awarded to provide services to co-ordinate and organise Mnquma Jazz Arts and Culture Festival 2016 as per the tendered amount of R3275071.50 VAT excluded,” says Tantsi in a letter signed on August 26 2016.
In another document seen by the Dispatch, Gqomo is paid an advance amount of R1.35-million on November 11 2016, just over a month before the event took place.
Gqomo said all work carried out was in strict adherence to the service level agreement (SLA) entered into between the company and the municipality.
“Responsibilities of the parties including issues of payments are all contained in the SLA which was developed by the client.
“Our brief was to organise and facilitate the festival for R2.25-million and we did that. Everything was above board and the client was happy,” said Gqomo without explaining why the final amount was increased by a R1-million.
He said they were still waiting for their final payment from the municipality.
It has also emerged that one of the Mnquma beneficiaries, IPM plant hire owner Madikizela, had funded a number of ANC events, mostly in the Alfred Nzo region from where Tantsi comes.
He admitted to funding a recent ANC Youth League event, but said he was not aware of any Hawks investigation.
“I run an established company that is working in a number of areas in the country.
“Mnquma is one of those projects and my funding of the ANC Youth League event in Alfred Nzo is something I am doing as a treasurer of the ANC in the region.
“I also support the women’s league if they come asking for help,” said Madikizela.
The Dispatch has seen a document in which IPM was awarded a tender in August last year for construction of the Mtsotsweni gravel access road.
R6.5-million was set aside by the municipality for the work.
Madikizela said his company delivered on work it was given.
“I am not worried – if they want to come and check the work we’ve done they are welcome to do that,” he said.
Meanwhile, the arrested Tantsi is still in an East London hospital after he was admitted early last week, a senior municipal employee confirmed.
Mulaudzi last week said Tantsi would remain in custody in hospital to recuperate until his next court appearance on March 27. — bonganif@dispatch.co.za
Top ANC officials in Hawks’ graft probe
The Daily Dispatch has seen documents showing amounts ranging from R15000 to R100000 transferred to Ntutu’s bank account by businessman Sive Nombembe’s company Big Event Boy.
Nombembe and Mnquma local municipality manager Sindile Tantsi were last week arrested by the Hawks in connection with fraud and corruption charges.
Nombembe was granted R35000 bail but Tantsi’s bail application was delayed by his hospitalisation.
The charges relate to a refuse bag tender worth R10-million awarded to Big Event Boy.
Packets of refuse bags, which retail for R20 to R30, were sold to the municipality for R185 to R192.
Immediately after payments were made to the company, outgoing payments were made to individuals under code names.
The Hawks have now extended their investigation to include Nophemba Holdings, the company that organised the popular Mnquma Jazz Festival, and IPM plant hire. Nophemba Holdings is owned by ANC member Nkosifikile Gqomo and IPM by Babalo Madikizela, Alfred Nzo’s ANC regional treasurer.
All the contracts relating to the probes were awarded by Tantsi.
Speaking to the Daily Dispatch on Sunday, Hawks national spokesman Brigadier Hangwani Mulaudzi confirmed the investigations.
“The investigations look at a number of municipalities in the Eastern Cape. In Mnquma, all the transactions done in the period we are investigating will be looked at.
“That means that no single person or company will be spared.”
The Dispatch has seen documents detailing several 2015 payments to Ntutu’s account from Big Event Boy. They include:
lOne on July 10 of R35000;
lOne on July 12 of R35000;
lOne on July 13 of R15000; and
lOne on November 7 of R100000.
Ntutu had not responded to Dispatch questions by deadline.
Big Event Boy is also alleged to have paid thousands of rands into accounts with “code names” such as “ANC”, “Sasco”, “Telkom” and others. It has emerged that some of these allegedly referred to Ntutu.
Meanwhile, Gqomo was awarded a R2.25-million tender by the municipality for the Mnquma Jazz Festival. However, a document signed by Tantsi and Gqomo shows the municipality eventually approved more than R3-million. “It is with great pleasure to inform you that you have been awarded to provide services to co-ordinate and organise Mnquma Jazz Arts and Culture Festival 2016 as per the tendered amount of R3275071.50 VAT excluded,” says Tantsi in a letter signed on August 26 2016.
In another document seen by the Dispatch, Gqomo is paid an advance amount of R1.35-million on November 11 2016, just over a month before the event took place.
Gqomo said all work carried out was in strict adherence to the service level agreement (SLA) entered into between the company and the municipality.
“Responsibilities of the parties including issues of payments are all contained in the SLA which was developed by the client.
“Our brief was to organise and facilitate the festival for R2.25-million and we did that. Everything was above board and the client was happy,” said Gqomo without explaining why the final amount was increased by a R1-million.
He said they were still waiting for their final payment from the municipality.
It has also emerged that one of the Mnquma beneficiaries, IPM plant hire owner Madikizela, had funded a number of ANC events, mostly in the Alfred Nzo region from where Tantsi comes.
He admitted to funding a recent ANC Youth League event, but said he was not aware of any Hawks investigation.
“I run an established company that is working in a number of areas in the country.
“Mnquma is one of those projects and my funding of the ANC Youth League event in Alfred Nzo is something I am doing as a treasurer of the ANC in the region.
“I also support the women’s league if they come asking for help,” said Madikizela.
The Dispatch has seen a document in which IPM was awarded a tender in August last year for construction of the Mtsotsweni gravel access road.
R6.5-million was set aside by the municipality for the work.
Madikizela said his company delivered on work it was given.
“I am not worried – if they want to come and check the work we’ve done they are welcome to do that,” he said.
Meanwhile, the arrested Tantsi is still in an East London hospital after he was admitted early last week, a senior municipal employee confirmed.
Mulaudzi last week said Tantsi would remain in custody in hospital to recuperate until his next court appearance on March 27. — bonganif@dispatch.co.za
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