DA concerned about possible corruption in KZN’s only clean audit municipality

Issued by Cllr Thys Janse van Rensburg – DA Okhahlamba Councillor
05 Feb 2020 in Press Statements

The Democratic Alliance (DA) notes with dismay that on 30 January 2020, the ANC majority-controlled Council in Okhahlamba approved the direct transfer of R6.5 million to a private entity for an event that took place in December 2019, without any legal obligation to do so.

The R6.5 million is to be transferred to an external service provider with no legally binding contract, or service agreement in place. The lack of a credible explanation for adopting this resolution begs for further investigation as it points to possible collusion and corruption in KZN’s only municipality to receive a clean audit in the last AG’s report.

The adopted resolution, possibly allows Okhahlamba to be used to launder money from the KZN EDTA( Dept of Development, Tourism, and Environmental Affairs) straight to an external private entity called Drakensberg Productions (PTY) Ltd. who has no standing contractual obligation with the Okhahlamba Council as was confirmed by Mr. Sthembiso Zulu, the Speaker of Council during the sitting.

For reasons that remain very unclear, the KZN EDTA will pay the R6.5 m to the Okhahlamba Council, who in turn will transfer it directly to Drakensberg Productions (PTY) Ltd., who will apparently use the money to pay the expenses of the December 2019 Drakensberg Extravaganza event.

This will be a direct transfer to Drakensberg Productions (PTY) Ltd without any details of exactly what, and how the money will be used.

There are serious questions that remain unanswered:

  • Why is the KZN EDTA channeling the money through the Okhahlamba Municipality, why did KZN EDTA not pay the entity, Drakensberg Productions(PTY) Ltd. directly?
  • Why would the amount invoiced by the supplier(s) to the KZN EDTA for services rendered come to R6 500 000 on the dot?
  • Why is there no service agreement, or contractual obligation between the Okhahlamba Council and Drakensberg Productions(PTY) Ltd?
  • Why was the Okhahlamba Council not informed before the event of the use of Drakensberg Productions(PTY) Ltd?
  • What happened to the ticket sales income generated from the Event?
  • Why does the letter from the KZN EDTA to the Okhahlamba Council in support of the R6,5m trance, not mention the need for the funds to be transferred to a 3rd party?

The DA caucus did not support the resolution, and we will further approach the Office of the Public Protector and the Auditor-General to investigate the case.