The DG was arrested on Monday morning at her home, along with a 47-year-old alleged accomplice “on allegations of defeating the ends of justice and intimidation”.
Other high-profile arrests included those of senior executives of Mhlathuze Water board as well as former Transnet boss Brian Molefe and Anoj Singh, who was a senior executive at Eskom.
Hawks spokesperson Brigadier Thandi Mbambo said an extensive investigation by the South African National Clean Audit task team of the Serious Commercial Crime Investigation Unit led to the arrest of Mkhize and her alleged accomplice.
“Both individuals were arrested on allegations of defeating the ends of justice and intimidation,” said Mbambo.
Mbambo said the chairperson of the uMhlathuze Water board reported allegations of the irregular appointment of service providers (legal panel) without following the supply chain management protocols of the board, as well as contravention of section 51(1) of the Public Finance Management Act, by allegedly not complying with the operational policies of the public entity.
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Investigations revealed that some senior officials are implicated in irregularities which resulted in the Mhlathuze Water board facing losses totalling about R37 million.
“Following the investigation and compilation of the forensic report, the chairperson of the Mhlathuze Water board allegedly received a visit from an unknown person at her home claiming to be from the National Intelligence Agency and that he was sent by the Senior Manager in the Premier’s Office.
“The individual allegedly threatened the chairperson with arrest and demanded the forensic report. He further insisted that the complainant must stop the investigation. It later emerged that the said person was not from the National Intelligence Agency and that he was in cahoots with persons of interest implicated in the investigation,” Mbambo said.
She said the operation is ongoing and so far two more people implicated in malfeasance at Mhlathuze Water board have been arrested on charges of corruption, fraud and money laundering. Furthermore, she said the four arrested will appear at a magistrate’s court soon.
National Freedom Party (NFP) secretary-general Canaan Mdletshe welcomed the arrest of DG Mkhize. Mdletshe said for a very long time, the people of KwaZulu-Natal have been robbed of much-needed water provision due to alleged corruption at the government entity.
“Water remains a critical source of life that has been taken away as a result of alleged corruption and thuggery at Mhlathuze Water.
“Therefore, we welcome the arrest. However, we call for a widespread investigation into the conduct of senior officials at the institution,” said Mdletshe.
IFP chief whip Blessed Gwala said corruption was right at the doorstep of the premier’s office. He said when they heard about the arrest they were shocked but not surprised.
“We were shocked but not surprised, looking into (the) development taking place with the ruling party being involved in corruption, mismanagement of funds and the use of state resources to benefit themselves,” said Gwala.
“However, we are waiting for Mkhize to appear in court to hear what is the reason for her arrest because for all we know she could be released tomorrow.”
EFF provincial leader Vusi Khoza said they are worried that someone from the office that manages all departments has been arrested. Furthermore, Khoza called on Premier Nomusa Dube-Ncube to suspend Mkhize with immediate effect.
“As much as this has to do with Mhlathuze Water it is concerning that the arrest is from the premier’s office. This is not the first one because the other arrest was (allegedly) about tender irregularities,” said Khoza.
He said Mkhize must be suspended with immediate effect until she is either proved innocent or guilty.
In a Twitter post, the Organisation Undoing Tax Abuse said this is another significant arrest in the fight against corruption.
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Siyabonga Maphumulo of Mhlathuze Water said: “Mhlathuze Water notes the arrest by the Hawks of certain individuals allegedly linked to ongoing investigations within the water entity.
“At this stage, we would not like to comment in detail on any single aspect of the allegations levelled by the Hawks against the arrested persons; suffice to say that, if called upon to do so by the relevant authorities, we will fully comply with such a directive.”
The premier’s office said it was in no position to comment about Mkhize’s arrrest as the matter is in the hands of law enforcement.
Meanwhile, Molefe, Singh, and Regiments Capital directors Niven Pillay and Litha Nyhonhya appeared in the Palm Ridge Specialised Crimes Court on Monday after their arrest by the NPA’s Investigating Directorate, assisted by the Hawks. They were granted bail of R50 000 each under conditions that included handing in their passports.
