National Coloured Congress (NCC) members Hanif Loonat and Fadiel Adams have submitted evidence to the Cape Town Central Police Station, seeking criminal charges against top political and administrative officials in the City of Cape Town (COCT).
They claim this is the "single biggest fraud and corruption scandal" in South African municipal history.
However, the City responded to the allegations, saying the NCC’s false claims have been previously “extensively ventilated” and asserting that it has a zero-tolerance, proactive approach to such complaints.
On Thursday, April 2, Mr Loonat and Mr Adams provided documents, including statements and emails, detailing allegations that mayor Geordin Hill-Lewis, City manager Lungelo Mbandazayo, chief financial officer Kevin Jacoby, chief audit executive Zakariya Hoosain, the director of supply chain management, and members of the bid adjudication committee had failed to disclose suspicious transactions.
The potential accusations relate to the officials' alleged dereliction of duty in reporting known or suspected corruption.
This constitutes an offence under Section 34(2) of the Prevention and Combating of Corrupt Activities Act 12 of 2004 (PRECCA), which carries a potential custodial sentence.
Central to the allegations is the case involving "The Construction Co" (TCC), a contractor the NCC claims was protected by the municipality for over two and a half years despite corruption concerns.
The NCC notes what they call "opposing opinions," pointing out that the City manager cleared the company in November 2022, only for the police to charge and arrest the owners two days later, reportedly based on information later provided by the council itself.
A major irregularity highlighted is the TCC contract in question, which was allegedly awarded at R60 million but saw its budget dramatically increased to R503 million without proper disclosure or explanation.
Mr Loonat attributes this to a "deliberate action to allegedly assist TCC and conspirators to plunder state funds".
The NCC uncovered the alleged corruption after whistleblowers contacted Mr Loonat seeking assistance to stop the alleged siphoning of state funds.
"The NCC is seeking justice and the immediate cessation of the alleged financial misconduct, aiming to determine who within the COCT is financially benefiting irregularly," said Mr Adams.
They would oppose what they claim is the current protection being afforded to a "proxy or front company" for a construction company, which they believe is continuing the alleged corruption.
Provincial police spokesman Sergeant Wesley Twigg confirmed that a case of fraud was registered at Cape Town Central police station on Thursday, April 2, and that "the circumstances surrounding the incident are under investigation."
The City further stated that the City manager authorised an internal forensic investigation in 2020 into complaints relating to several tenders.
The resultant forensic investigation report "made no findings that required reporting of any offences in terms of Section 34 of PRECCA or other criminal conduct."
The City noted that at the time its investigation was authorised, the police had already initiated a separate, ongoing investigation into related allegations, to which the City provides support.
The City's investigation "resulted in relevant recommendations being made in line with applicable governance and disciplinary frameworks," including internal disciplinary action against several City officials, "none of whom are in the employ of the City any longer".
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