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Former KZN treasury head gets 15 years behind bars for corruption

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A former government official has been jailed.
A former government official has been jailed.
Michele D'ottavio, EyeEm, Getty Images
  • Former KwaZulu-Natal treasury head Dumisani Shabalala has been sentenced to an effective 15 years' imprisonment for fraud, corruption and money laundering.
  • He was convicted after accepting a R1.5 million bribe from Intaka Investments for the acquisition of Wataka water purification plants, valued at R44 million.
  • He committed his crimes between 2004 and 2007 after forming a relationship with Uruguayan businessman Gaston Savoi.

The former head of treasury in KwaZulu-Natal has been sentenced to an effective 15 years in prison for corruption, money laundering and contravention of the Public Finance Management Act (PFMA) more than a decade after he committed his crimes.

On Thursday, the National Prosecuting Authority (NPA) said the Pietermaritzburg High Court sentenced Dumisani Sipho Derrick Shabalala for the crimes he committed between 2004 and 2007.

Shabalala was sentenced to 15 years' imprisonment for fraud, 15 for corruption, 10 for money laundering and five years for contravening the PFMA.

The sentences will run concurrently.

Shabalala has appealed the decision.

His conviction relates to him taking a R1.5 million bribe from Intaka Investments for the acquisition of Wataka water purification plants which were valued at R44 million.

Between 2004 and 2007, Shabalala formed a relationship with Uruguayan businessman Gaston Savoi and the company, Intaka Investments, which saw Shabalala travelling to Brazil to view the purification equipment.

On his return to South Africa, he wrote to then-health MEC Dr Zweli Mkhize, recommending monies be redirected 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. 

NPA spokesperson Natasha Kara said:

This conviction on the contravention of the PFMA in a High Court reflects the pointed focus on holding government officials accountable for corruption, using this piece of legislation,

Shabalala's bail was extended to 13 September when the court will hear his application for leave to appeal. 

The related case of the State vs Savoi and others was postponed until 14 November, when an application for a permanent stay of prosecution will be heard.

Director of Public Prosecutions advocate Elaine Zungu lauded the conviction and sentencing.

"This sentence indicates that even though the wheels of justice may turn slowly in such complex cases of corruption, they do turn. The NPA will continue with its mandate of rooting out corruption, especially in the government sector," she said.


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