Umngeni Municipality probing law firm for fraud, corruption
Umngeni Municipality is looking into possible fraud and corruption after being hit with what they believe are heavily inflated prices by a firm brought in to investigate graft.
The law firm in question was roped in following a Special Investigating Unit finding that municipal infrastructure grant funding was irregularly used.
Umngeni Mayor Chris Pappas says the company was brought in by the previous mayor.
He says they have had no choice but to pay them even though they were not satisfied with the work done and what they were being charged.
"When we received the first invoice from them, our municipal manager flagged this to us, we said well look at the size of this invoice, it's ridiculous, there are no terms and conditions. There's no rates that were agreed to. It is just an invoice out of the blue."
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"We initially said that we would not pay them in full, but unfortunately, we were threatened with them stopping work completely, which would then derail a R3.1 million legal case that that was already in play."
Pappas says a closer look revealed the company is owned by one of the people recently arrested in the uMhlathuze Water case involving the director-general in the Office of the Premier.
"We thought we were alone in the situation in terms of other municipalities having this done to them as well, but when the arrests were made, and the story unfolded, it pushed us to speed it up."
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