SIU welcomes High Court decision ordering Eastern Cape Bishop to start 12 year imprisonment over RDP housing corruption
The Special Investigating Unit (SIU) welcomes a decision of the High Court of South Africa: Eastern Cape Division, Grahamstown to dismiss corruption conviction and 12- year imprisonment appeal by Bishop Muzukisi Samuel Banzana.
The imprisonment follows a corruption and maladministration investigation into Bishop Banzana’s Mzingisi Development Trust by the SIU. The Trust was awarded a contract by the Department of Human Settlements as an implementing agent for the construction of 1211 RDP houses in Port Elizabeth during November 2007. The Trust then appointed Josh and Wentzel Meyers of MOM Construction CC to construct the RDP houses. As an implementing agent of the human settlements department, the Trust was bound to its policies, principles and legislation.
The SIU uncovered elements of corruption during the investigation into the development and delivery of low cost housing and referred the matter to the National Prosecuting Authority for prosecution.
Elements of corruption included the following:
- Cash payments and cheques made to Bishop Banzana which were used to buy luxury vehicles and settle a bond to the value of R1.4 million.
- Banzana entering into corrupt relationships with suppliers, project and government officials associated with the project
- Banzana forced MOM Construction CC to use his preferred suppliers. The suppliers included Duranco Blocks (Pty) Ltd, which he is a Director.
The investigation emanated from Proclamation R7 of 2007, as published in Government Gazette 29381 dated 25 April 2007 and extended by Proclamation R35 of 2010 to conduct an investigation into possible fraud, corruption and maladministration in awarding of the contract.
The SIU is tasked with the role of investigating serious malpractice, maleficence and maladministration in relation to the administration of State institutions, State assets and public money as well as any conduct which may seriously harm the interest of the State and the public.
Fraud and corruption allegations may be reported via the following platforms: siu@whistleblowing.co.za
Hotline: 0800 037 774
Enquiries:
Mr Kaizer Kganyago
Head of Stakeholder Relations and Communications (SIU)
Tel: 012 843 0048
Cell: 082 306 8888
E-mail: kkganyago@siu.org.za
