Theletsi Roger Nkhumise – the former municipal manager of Moretele Municipality in the North West – was arrested on Friday over a dodgy multi-million-rand IT tender and appeared at the Moretele Regional Court the same day.
Nkhumise is accused of unlawfully appointing Flame IT Strategy to render ICT services to the Moretele Municipality, which is largely rural, to the tune of approximately R215 million.
The municipality inherited the contract for ICT services from Madibeng Local Municipality.
The arrest of Nkhumise follows an investigation conducted by the Special Investigating Unit (SIU), which revealed that the municipality increased the scope of work with two addendums to the original contract without following processes governing municipal procurement of goods and services.
Furthermore, the SIU investigation revealed that the price from that of the original contract between Madibeng Municipality and Flame IT are definitely not in sync with the pricing between Moretele Municipality and Flame IT.
Madibeng paid Flame IT approximately R64 million for a similar service.
The SIU probe revealed that Moretele is paying way more than what Madibeng Municipality paid Flame IT for a similar service.
The SIU said it was authorised to investigate the tender following the signing of the relevant proclamation (R. 7 of 2019) by President Cyril Ramaphosa.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU said it referred evidence pointing to criminal activity to the National Prosecuting Authority for further action.
The SIU said it has instituted a civil action in the Special Tribunal to review and set aside the contract.
“This will pave the way for the State’s only anti-corruption, forensic investigation, and civil litigation agency to recover financial losses suffered by the municipality due to negligence and corruption,” said the SIU.
On Monday, the SIU said, “it welcomes the arrest” of the former municipal manager of Moretele Municipality for allegedly contravening the Municipal Finance Management Act and the irregular awarding of a multimillion rand IT tender.
