Galada opens fraud case against muni

GRAAFF-REINET NEWS - A fraud case was opened on Tuesday 6 February against the Dr Beyers Naudé Municipality, relating to the eight security tenders advertised by the municipality in August last year.

According to Councillor Xolile Galada, he and Councillor Nathan Jacobs opened the case after Galada received a request for assistance from the director of one of the companies that submitted tenders for some of the security contracts.

This director - whose identity is known to Graaff-Reinet Advertiser but withheld due to the sensitive nature of the case - was allegedly informed that he would be awarded the security contracts for all towns in the Dr Beyers Naudé Municipality if he agreed to give the "municipal official" a cut of the deal.

However, after this director indicated that he did not have the financial means to pay the initial amount as requested, he was not awarded any of the security tenders.

Evidence submitted

Galada submitted into evidence screenshots of conversations between the director of the company and individuals from the municipality as well as an official from the municipality's supply chain unit. In one of the messages that was submitted into evidence, the individual believed to be the supply chain unit official reminded the director that the monthly income for this deal was R1,6m and indicated that he could not expect to be given the deal for free.

Galada is confident that the evidence points to tender fraud.

"You cannot lie to me about municipal finances. I can do oversight with my eyes closed and identify any issues as I am in possession of a Certificate Programme in Management Development for Municipal Finance NQF Level 7, I served on the municipality's Budget and Treasury Committee, and I was the chairperson of the Municipal Public Accounts Committee (MPAC)," he said.

"I know that these are only allegations but that the truth will be tested in court. My duty as a councillor is to hand the matter over to the police to investigate."

Galada convinced it's not the first time

Galada is convinced that the same irregularities occurred with the security tenders that were awarded to the previous security service provider.

This provider was appointed in 2018 and, despite many complaints relating to vandalism of municipal assets, their service level agreement was renewed in 2023. According to Galada, during the period that he was the chairperson of MPAC, he received instructions from the municipal council to investigate the particular security services provider. However, shortly after he requested the documentation that would enable this investigation, his regional leadership removed him as MPAC chairperson.

Fraud can be linked

Galada also believes that this instance of fraud can be linked to the findings of a 2018 investigation that was conducted by SAPS' Directorate for Priority Crime Investigation, commonly known as the Hawks.

This investigation followed after the management of the Dr Beyers Naudé Municipality handed over a report and supporting documentation relating to irregularities within the municipality's supply chain division to the Hawks for further investigation and prosecution.

According to Galada, despite numerous requests, the compact disc containing the report and supporting documentation was never presented to council. He stated that the same supply chain management officials who were implicated at the time are the ones involved in the current alleged tender fraud case and therefore he is of the opinion that the compact disc was deliberately withheld from council to protect the alleged fraudsters.

Muni's comment requested

Graaff-Reinet Advertiser requested comment from the municipality, but at the time of going to print nothing has yet been received. Graaff-Reinet Advertiser will publish it when received.

A screenshot of one of the messages submitted as evidence.