THE Democratic Alliance in KwaZulu-Natal believes that a “salary” of R1-million a month paid to former president Jacob Zuma by Royal Security company owned by Durban businessman and ANC-funder Roy Moodley came from the eThekwini municipality.
This was revealed by provincial DA leader Zwakele Mncwango after his meeting with the provincial Hawks boss Major-General Jabulani Zikhali at the police headquarters in Durban on Monday. The meeting was held to discuss a number of forensic reports which the DA believes were not being properly investigated.
Mncwango told the media after his meeting with Zikhali that the DA will be submitting a report to the Hawks around the Royal Security contract with the eThekwini municipality.
“I think the major issue for us is that we strongly believe that the money that was given by Royal Security company to Jacob Zuma which was R1-million, was coming from eThekwini. We do have some documents which that show there was continuous awarding of this contract even though the contract expired but they still have a contract with eThekwini even today,” said Mncwango.
Royal Security is one of the eight companies that have supplied lucrative security services to the eThekwini municipality over the past 13 years under a series of controversial contract extensions.
In October last year, investigative journalist Jacques Pauw claimed in his explosive book The President’s Keepers that Zuma pocketed a “salary” of R1-million from a controversial tender mogul without declaring it to the South African Revenue Services.
Pauw detailed how a SARS official in 2010 discovered that Zuma had been receiving payments of R1-million a month from Royal Security, a company owned by his long-time ally, Moodley.
The company allegedly failed to pay SARS the necessary Pay As You Earn (PAYE) tax on their “employee’s” salary, and Zuma also allegedly failed to declare his “salary” from Royal Security to the tax collector.
Moodley didn’t respond to queries.
The DA’s report on Royal Security will be one of the five in their priority list they will be submitting to the Hawks for investigation next week.
The other reports that the DA wants the Hawks to prioritise include:
- A forensic investigation into the awarding of a contract for R90-million to supply orange recycling bags to the city which found that the tender process was fraught with irregularities. The report also found that the Persian Star Investments 11 CC was “wrongfully awarded this tender” based on misrepresentation in made in terms its capacity to handle the massive contract. The company also continuously failed to meet its end of the deal, resulting in the city running out recycling bags;
- A damning internal report which implicated the city’s police services for giving reflector jackets earmarked for scholar patrols to ANC officials to use at a party. A December 2014 eThekwini internal audit report recommended that disciplinary action and criminal charges be instituted against deputy head of metro police Steve Middleton for sanctioning a directive that reflective orange jackets be given to the ANC for use during their centenary celebrations. In addition it was proposed that the city recover the cost of the jackets — almost R25 000 — from him. The report, which only emerged last year, came after another internal audit report surfaced at about the same time which found that the city’s police wasted R4-million to hire more than 50 top-end vehicles. Of the fleet, eight cars were allocated for the protection of eThekwini mayor Zandile Gumede ahead of the August 2016 local government elections;
- The 2012 Manase Report into corruption and maladministration in the eThekwini municipality which was commissioned by cooperative governance and traditional affairs Nomusa Ncube-Dube into widespread allegations of corruption in the city. The damning 7 000-page report implicated high-ranking eThekwini municipal officials and politicians, including former municipal manager Mike Sutcliffe and former mayor Obed Mlaba, in financial irregularities, fraud and corruption. They all denied any wrongdoing.
The report found widespread irregularities involving mainly the flouting of tender procedures, lack of budgetary controls, abuse of overtime and councillors and employees doing business with the municipality.
Mncwango said they believed that the Hawks have capacity to investigate these matters and that his party is willing to assist them with information.
“South Africans want to know that after reporting corruption, after investigations, what then happens because in most cases after investigations we get recommendations that criminal charges must be laid and that lifestyle audits must be done but nothing happens in most cases.”