Mhlathuze Water under fire

 

October 24, 2008

Zululand OBSERVER

	Mhlathuze Water under fire Dave Savides FACING a barrage of charges proclaimed in the Government Gazette, local utility Mhlathuze Water met yesterday (Wednesday) with the office of the Presidency to post its defence against a number of serious allegations of gross mismanagement. Signed by then President Thabo Mbeki, the proclamation dated 4 September 2008 orders the Special Investigations Unit and Special Tribunal to fully investigate the affairs of Mhlathuze Water, with regard to: • serious maladministration • improper or unlawful conduct of its officers or employees • unlawful appropriation or expenditure of public money or property • unlawful, irregular or unapproved transactions or practices • intentional or negligent loss of public money or damage to public property • possible offences under the Corrupt Activities Act • unlawful or improper conduct which may have caused serious harm to the interests of the public. Dismissals The alleged offences took place between 1 January 2004 and the date of the Government Gazette announcement. Questions with regard to the procurement of goods and services contrary to policy or regulations, resulting in losses suffered by Mhlathuze Water were highlighted in the investigation schedule. So too the actual or prospective interest a member of the Governing Board or employee of the utility may have had in various transactions or payments. Tender process also come under the spotlight, as well as the use of the company's resources for private business purposes and excessive expenditure by the Board on, among others, travel and accommodation. Failure to rent company properties at market related values is also alleged. Of particular local interest is a charge relating to 'the unlawful or constructive dismissal of staff which resulted in financial prejudice or losses to Mhlathuze Water'. This after more than a dozen employees - including a number at the upper echelon of management - took their dismissals to CCMA. At least half, including former CEO Lawrence Sithole, won their cases and were reinstated or given sizeable severance packages. Response In spite of the many serious allegations, recently appointed Mhlathuze Water CEO, Khandani Msibi welcomed the investigation. 'I am in fact surprised that more than six weeks have passed since the proclamation and we have still not been visited by the Special Investigations Unit. 'We are totally transparent and will co-operate fully; we have nothing to hide. 'We have been proactive and have prepared a dossier of over 300 pages, answering each allegation one by one,' said Msibi. 'This is what was handed to the Presidency, and it contains all the relevant documentation, minutes of meetings, resolutions taken and other information they would require.' Msibi pointed out that the new Board took over in April 2006 and had 'inherited issues'. They had also 'adequately addressed' many of the issues named in the Gazette and disputed out of hand some of the allegations. 'For example, all dismissals were presided over by outside professionals. 'But I do not want to speculate or preempt the investigation,' said Msibi. 'We will await the response to our dossier.' He declined to comment on whether the allegations might have been politically motivated. Mhlathuze Board Chairperson Dudu Myeni concurred with Msibi's sentiments.