The former head of treasury in KwaZulu-Natal has been handed a 15 years jail sentence for corruption, money laundering and contravention of the Public Finance Management Act (PFMA) more than a decade after he committed the crime.
On Thursday, the National Prosecuting Authority (NPA) said the Pietermaritzburg High Court sentenced Dumisani Sipho Derrick Shabalala to 15 years in jail for crimes he committed between 2004 and 2007.
In June Shabalala was found guilty for his role in the so-called “Amigos case” involving the award of a contract for the supply of water purification plants in return for kick-backs.
His wife, Beatrice Shabalala, was acquitted in June after facing charges of money laundering.
Natasha Ramkisoon-Kara, the NPA spokesperson in a statement said, Shabalala’s conviction relates to his receipt of R1.5 million from Intaka investments, for the acquisition of ‘Wattaka’ water purification plants valued at R44 million.
“The offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman, Gaston Savoi, and the company Intaka Investments. Shabalala then travelled to Brazil to view the purification equipment.
“On his return to South Africa, he wrote to the then MEC Dr Zweli Mkhize, recommending that money be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka.
“The process culminated in the awarding of a contract for 22 ‘Wataka’ plants. Shabalala was the chairperson of the procurement committee that awarded the contract,” she said.
“Shabalala was sentenced to 15 years imprisonment for fraud, 15 years imprisonment for corruption, 10 years imprisonment for money laundering and five years imprisonment for contravening the PFMA. The sentence will run concurrently,” Ramkisoon-Kara said.
Director of Public Prosecutions, Advocate Elaine Zungu, lauded the outcome and commended the work done by the prosecution and investigating teams.
The NPA said this sentence indicates that even though the wheels of justice are turning slowly, they do turn, and it will continue with its mandate of rooting out corruption, especially in the government sector.
Source: News24, Times Live, The Citizen, IOL, image from Twitter: SAPS