Former KwaZulu-Natal (KZN) Provincial Treasury head, Dumisani Shabalala, has lost an application in the Pietermaritzburg High Court for leave to appeal the conviction and sentence made against him last week for several counts of fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA).
Shabalala was sentenced to 15 years imprisonment each for fraud and corruption, 10 years on the charge of money laundering and five years imprisonment for contravention of the PFMA.
The sentences will run concurrently, effectively handing him a 15-year prison sentence.
According to National Prosecuting Authority (NPA) regional spokesperson, Natasha Ramkisson-Kara, Shabala was convicted of receiving a R1.5 million kick back from Intaka Investments for government’s “acquisition of ‘Wataka’ water purification plants”, valued at some R44 million.
“The offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman, Gaston Savoi, and the company, Intaka Investments. Shabalala then travelled to Brazil to view the purification equipment.
“On his return… he wrote to the then MEC Dr Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka.
“The process culminated in the awarding of a contract for 22 ‘Wataka’ plants. Shabalala was the chairperson of the procurement committee that awarded the contract,” Ramkisson-Kara said.
She said the KZN Director of Public Prosecutions, Advocate Elaine Zungu, welcomed the refusal of Shabalala’s application for leave to appeal.
“This is evidence that KZN is making strides in our fight against corruption. We will continue with our mandate of rooting out corruption, especially in the government sector. We commend the stellar work done by the prosecution team and the investigation team from the Hawks,” she said. – SAnews.gov.za
