Concerns Raised Over R5 Million Waste Collection Claims in eThekwini Fraud Trial

The Durban High Court heard on Wednesday that concerns were raised about irregular payments to a service provider involved in waste collection in eThekwini. The revelations emerged during the fraud and corruption trial of former eThekwini mayor Zandile Gumede and 21 others, who face charges including conspiracy to commit corruption, fraud, money laundering, racketeering, and violations of the Municipal Finance Management Act and Municipal Systems Act. The charges relate to a R300 million Durban Solid Waste (DSW) tender.

A State witness, a contract administrator for the municipality, testified that she received an email from Allan Robert Abbu, the fourth accused and former deputy head of DSW, urging her to address payment issues for two service providers. The witness, whose identity is protected by a court order, reviewed the email thread and highlighted discrepancies in the payments.

She presented the court with a series of emails from February 2018, in which officials from the Finance Department expressed concerns over unpaid funds for waste collection services. One service provider, Elshaddai Holdings Group, had claimed R5 million in addition to R122,000. A municipal accountant questioned how the R5 million was calculated, noting that the letter of award specified a fixed charge of R122,000 per month and a variable charge of R800 per cubic meter.

Abbu, who had been on leave at the time, responded that the areas serviced were incorrectly grouped. He explained that contractors were instructed to service additional areas, including the CBD during an EPWP strike and specific wards during high-profile visits. These extra services incurred additional costs, which the contractors covered to prevent work stoppages.

The witness also noted that only two of the four contractors involved in the waste collection project—Ilanga La Mahlase Projects and Uzuzinekela Trading—had been paid. Omphile Thabang CC and Elshaddai Holdings Group were still awaiting payment.

The witness emphasized the need for compliance checks and amendments to the Bid Adjudication Committee (BAC) report recommendations. She stated that she had asked Abbu to clarify the necessary steps to resolve the payment issues.

The trial continues as the court examines the details of the alleged fraud and corruption surrounding the DSW tender.

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