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Ex-municipal manager up for fraud

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FORMER Moretele Municipality municipal manager, Theletsi Roger Nkhumise, is facing fraud charges.

Nkhumise (49), who was arrested on Friday, 15 July, appeared in the Moretele Magistrates Court on Monday, 18 July.

He appeared in court for the contravention of the Municipal Finance Management Act in the appointment of Flame IT Strategy to render ICT services in 2016 at the municipality.

It is alleged that the provisions of Regulation 32 of the Municipal Supply Chain Management Regulations were wrongly, deliberately and unlawfully applied by Nkhumise.

When the municipality inherited the contract for ICT services from Madibeng Municipality, it is alleged that an irregular provision was made in subsequent service level agreement for Flame IT Strategy to be appointed for additional work.

According to a statement released by the police, the original contract between Flame IT Strategy and Madibeng Municipality was reportedly remaining with only 23 months until conclusion, but Moretele Municipality appointed the said service provider for three years.

Captain Tlangelani Rikhotso said Flame IT Strategy was allegedly appointed without a competitive bidding process and thereafter its contract was extended, thus deviating from the prescripts of Regulation 32.

“The pricing for the contract was allegedly also different from the pricing of the inherited contract. The service provider was allegedly paid about R215 711 00,71 in total,” said Rikhotso.

Major General Patrick Mbotho, provincial head of the Directorate for Priority Crime Investigation in North West, warned that people who use their positions of power to promote criminal activities will face the full might of the law.

He further thanked the National Prosecuting Authority and National Treasury for ensuring this matter gets heard in court.

Special Investigating Unit’s Kaizer Kganyago welcomed Nkhumise’s arrest.

Nkhumise will be back in court on 17 August after the matter was postponed.

for disclosure of docket and representation.

SIU spokesman, Kaizer Kganyago, said Nkhumise’s arrest follows an investigation conducted by the SIU, which revealed that the municipality increased the scope of work with two addendums to the original contract without following processes governing municipal procurement of goods and services.

“Furthermore, the SIU investigation revealed that the price from that of the original contract between Madibeng Municipality and Flame IT are definitely not in sync with the pricing between Moretele Municipality and Flame IT. Madibeng paid Flame IT approximately R64 million for a similar service. The SIU probe revealed that Moretele is paying way more than what Madibeng Municipality paid Flame IT for a similar service,” he said.

He said the SIU has instituted a civil action in the Special Tribunal to review and set aside the contract.

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