The Durban High Court on Thursday learned of an error in the bid adjudication committee (BAC) report, which said the former city manager of eThekwini Municipality, Sipho Nzuza, additionally approved a further six months for contractors to collect waste in 2018 when he did not.
Six days later, the executive acquisitions committee (EAC) picked this up and ordered a circular to run in the municipality stating that Nzuza, an accused in a R300 million fraud and corruption case, did not approve of this extension.
Nzuza and 21 others, including the former mayor of the city, Zandile Gumede, are on trial for fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act concerning a R300 million Durban Solid Waste (DSW) contract.
ILanga la Mahlase PTY (LTD), Uzuzinekele Trading 31 cc, Omphile Thabang Projects, and El Shaddai Holdings Group cc, were the contractors collecting waste in the city and are also charged in this matter.
During the cross-examination of a State witness by defence counsel for Nzuza, advocate Griffiths Madonsela SC, it emerged that the EAC was established by Nzuza as his advisory board.
“This board existed in 2017, 2018, and 2019. Is that so?” Madonsela asked.
The witness agreed and said the board was no longer there, further agreeing that the EAC had no powers within the municipality; it was just there to advise the city manager.
On Wednesday, the witness said Nzuza approved the extension of the four service providers in 2017, which was recommended by the BAC. That extension was going to expire in March 2018.
He added that Nzuza followed all the supply chain management policies.
A senior DSW unit official sent a motivation letter in July 2018 for the four service providers to be reappointed, pointing out that when municipal vehicles went to collect waste in various parts of the city, they were being stoned. Death threats were also made. The city was collecting the rubbish at this time; it wasn't outsourced.
She also said the open tender system was experiencing difficulties and asked for an unusually long period of 24 months for the appointment of new service providers.
She said the unit or municipality was contemplating a non-award on that open tender. The other reason was that the municipality had the Radical Economic Transformation (RET).
"Did you see that you approved of that motivation by the senior official?" Madonsela asked the witness.
The witness asked to explain and said that despite his approval, he acknowledged that he had some doubts. He did, however, agree to sign.
The BAC approved it as well, but Nzuza wrote a handwritten message when it reached him.
The witness was questioned if he knew whose handwriting that was by Judge Sharmaine Balton.
“The handwriting is of Mr Nzuza,” he said.
At that moment, Madonsela smiled and said: “Yes, those are my instructions. Please read what is written there.”
The witness read what Nzuza wrote. “How much is provided for this section 36; why is the long-term plan and contract not concluded; I can’t see the reason for approving this process meaning therefore not approved.”
The witness said the person who had the final word on this was Nzuza, who did not approve. Madonsela then referred the witness to other documents which had an error that said Nzuza approved the extension of this tender. He then concluded his cross-examination.
On Friday, advocate Jimmy Howse SC is expected to start his cross-examination of this witness.