In the early hours of the morning today, members of the South African Police Service's (SAPS) Organised Crime unit swooped on the homes of the suspended municipal Manager of Madibeng in the North West, Mr Philemon Mapulane, and a man alleged to have illegally benefited from tenders in the municipality.
An extensive audit conducted on capital expenditure projects in the municipality has revealed financial mismanagement of project funds in excess of R100 million. Included in this audit were municipal infrastructure grant (MIG) and the Department of Water Affairs (DWA) projects.
At least two companies who were service providers to the municipality are alleged to have paid bribes in excess of R1 million to the suspended municipal manager. Irregular tender awards amounting to more than R40 million are still being investigated.
Mr Mapulane, popularly known as "Mr Cash" has been on suspension since October 2009 with disciplinary hearings against him pending. Allegations of fraud and corruption are also being investigated against him. The other man who is alleged to have illegally benefitted from tenders and whose house was also searched this morning is still on the run.
Earlier this year residents in Madibeng, which includes Brits and Hartebeespoort Dam, went on a rampage, barricading streets with burning tyres and stones in service delivery protests.
Residents complained about dirty drinking water, that the roads were covered in potholes, the street lights did not work, the grass was overgrown and municipal buildings and communal areas were not maintained. White residents formed an organisation to withhold the payment of rates to the municipality in protest against poor service delivery.
The arrest this morning was a culmination of investigations in which the Special Investigations unit, the SAPS and private forensic investigators collaborated to ensure a successful criminal prosecution and civil recovery from the perpetrators.
Investigations against Mr Mapulane include failure to deliver on MIG projects, failure to build a water reservoir and a water purification plant, the irregular award of tenders including a R17 million award of a tender for training, as well as incomplete construction of roads and a sewer.
A total of three properties belonging to the alleged perpetrators in Hartebeespoort and suburbs of Pretoria were searched this morning.
Service providers to the municipality who had paid bribes are given seven days from today within to approach the investigating team to provide full details of the said transactions in exchange for indemnity against prosecution. They must call 082 499 7660 with this information.
Those who fail to do so within the specified time period face being prosecuted alongside Mr Mapulane.
In addition, all those found to have collaborated with any municipal officials in acts of fraud or corruption will be blacklisted on the National Treasury database to ensure that no government tenders whatsoever are allocated to their companies.
Source: Department of Cooperative Governance and Traditional Affairs
