Durban – The Pietermaritzburg High Court this week upheld the sentence of conviction and sentence of former head of the KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala.
Last week, 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 during 2004 and 2007.
According to the National Prosecuting Authority (NPA) the sentence will run concurrently and the effective sentence is 15 years.
“Shabalala was granted bail pending the application, however following his refusal of the application for leave to appeal, his bail was cancelled and he will have to start serving his sentence,” said NPA spokesperson Natasha Kara.
According to the NPA, his conviction relates to his receipt of R1.5 million from Intaka Investments, for the acquisition of “Wataka” water purification plants valued at R44m.
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 monies 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.”
The Director of Public Prosecutions, in KwaZulu-Natal Advocate Elaine Zungu welcomes the court’s findings in refusing this application.
“This is evidence that KZN is making strides in our fight against corruption. We will continue with our mandate of rooting out corruption, especially in the government sector.”
IOL