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Errant city councillors fined for doing business

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Three ANC councillors caught doing business with the eThekwini Municipality for two consecutive financial years, have been fined.

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Durban - Three ANC councillors, including chief whip Stanley Xulu and executive committee member Nondumiso Cele, who were caught doing business worth nearly R11 million with the eThekwini Municipality for two consecutive financial years, have been fined by the council’s ethics committee.

The third guilty councillor is named as Senzangakhona Shange.

On Thursday, at a full council meeting, opposition parties said the councillors had contravened the Municipal Systems Act and should be fired.

The act states that no councillor may be a party to or beneficiary under a contract for the provision of goods or services to any municipality.

But Co-operative Governance MEC Nomusa Dube’s spokesman, Lennox Mabaso, said it was untrue that the councillors were repeat offenders.

“We think (to say) that is part of the cheap theatrics and blatant sensationalism,” he said.

Ethics committee chairman William Mapena said Xulu had pleaded guilty to landing a tender worth R1.2m as a member of Igagasi Lolwandle Trading.

He also pleaded guilty to doing business worth R128 700 with the city, through the Igagasi Lolwandle Foundation and for landing another contract worth nearly R370 000, as a member of Inkasa Development Primary Co-operative.

The committee recommended a written warning and a fine equivalent to six months’ net salary.

Last year Xulu was fined the equivalent of 12 months’ net salary for landing contracts worth R8.5m through Igagasi Lolwandle Trading.

His fellow executive committee member, Cele, also pleaded guilty to doing business worth about R132 000 with the municipality as a member of Cuphiwe Trading Enterprise. Cele was given a written warning.

Last year she was fined two weeks’ net salary for the same offence. However, the value of the contract then was R200 000 via Cuphiwe Trading Enterprises.

The committee recommended Shange be given a formal written warning for doing work worth R353 018 as a member of Khetha Thina Trading 16.

Last year Shange was ordered to pay back four weeks’ net salary for being awarded work worth nearly R270 000 as a member of the same company.

A fourth councillor, Phumzile Primrose Hlengwa, who also pleaded guilty to doing business worth about R370 000 as a member of Inkasa Development Primary Co-operative, was fined the equivalent of six weeks’ salary.

During the hearing Hlengwa apologised, a report states.

Mapena said the Manase report into fraud and corruption in the city implicated nine councillors, including Xulu, Cele, Shange and Hlengwa, for having business dealings with the city.

He said the councillors named in the Manase report were also implicated in the auditor-general’s report for the financial years 2009/10, 2010/11 and 2011/13.

The ethics committee broke down the offences according to each financial year and addressed them separately instead of dealing with them as one.

DA councillor Tex Collins said that Xulu and Cele should be seeking alternative employment.

“We cannot condone this and these councillors should be removed from the executive committee,” he said.

DA councillor Dean Macpherson, who is also a member of the ethics committee, said they had brought shame to the council.

“The only service delivery taking place is to their bank account with the blessing of the ANC.

“The ANC members in the ethics committee tried their damnedest to have the guilty pleas of councillors changed to not guilty,” he said.

IFP councillor Mdu Nkosi echoed Macpherson.

“They are tenderpreneurs, not councillors. We are not happy with the fines imposed and we feel that it is best they resign. For them to continue being part of this council is an insult to Durban residents,” he said.

The NFP also called on the councillors to go or be given the boot.

The Mercury was unable to reach all implicated councillors for comment by the time of going to print.

The Mercury


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