POLITICS

Obed Mlaba's "retirement plan" needs investigation- ID

eThekweni Mayor's family linked to firm which "won" R3bn municipal tender

Independent Democrats Secretary-General Mr Haniff Hoosen MP says urgent intervention is required by the Ministry to curb the looting of the city's finances.

Recent reports that eThekweni Mayor Obed Mlaba has negotiated himself and his family a tender to the value of 3 billion rand is further proof that senior ANC Leaders and officials are busy raping the municipality's coffers as part of their personal retirement plans (see Mercury report).

The tender is for the conversion of waste to energy at Durban's Bisasar Road landfill site. Last year it was uncovered that one of Mlabla's daughter, Thandeka, received two contracts for container toilets in the city.

In addition to this latest "feeding frenzy", the Auditor General and the infamous Ngubane audit report recently raised serious concerns about the city's tender processes and called for corrective action and amongst others:

  • Raised concern about close family members of Mlaba receiving three tenders from the city to the value of R88.31-million.
  • Found the Municipality guilty of irregular expenditure totalling R532-million in the past financial year, most of it relating to housing projects.
  • Found that tenders for the refurbishment of the municipality's rental stock in the Chatsworth areas of Westcliffe, Crossmoor and Bayview dating back to 2008 flouted proper supply chain management procedures.
  • Found that contract prices leapt from an initial R12.7-million to almost R22-million.
  • Found that in Chatsworth the R23-million Bayview contract had no tax certificate, occupational health and safety certificate or Workmen's Compensation Fund certificate, as legally required.

The ID is extremely concerned that in the last few weeks before the election, those ANC Leaders who know that they will no longer return to their positions are busy bleeding the cities resources for their own benefit at the expense of the poor and desperate in the city.

Unless urgent intervention is made by the Ministry into the affairs of this Municipality, there will be little resources left for the development and service delivery in the city after the local government elections.

Statement issued by Independent Democrats Secretary-General Mr Haniff Hoosen MP, March 14 2011

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