Wednesday, June 17, 2026

Claims of R3bn allegedly looted through proxy companies in eThekwini Municipality

Date:

What’s Happening in eThekwini?

Recent claims suggest that the ANC‑led eThekwini Municipality may have lost billions of rand through a questionable tender system. A youth activist group says four companies have been siphoning money from the city, and they are demanding an urgent investigation.

Accusations of Corruption

Who Made the Claims?

Linda Vilakazi, leader of Azania Youth In Action, spoke at a media briefing on Thursday. She said the city’s management has refused to work with her group to expose the alleged fraud.

The Four Companies Named

Vilakazi identified four specific firms that, according to her, have benefited the most from the dubious tender process. She claims these companies receive contracts far larger than the work they actually perform.

How the Scheme Works

The SSS Tender Process

The activist alleges that a tendering method called “SSS” was created to favour these four firms. The process allegedly skips normal competition and directs contracts straight to the selected companies.

Inflated Invoices

Even when the companies do a job, the invoices they submit are said to be far above the actual scope of work. The municipality reportedly pays these inflated amounts without questioning them.

Money Lost

Vilakazi’s own calculations put the total loss at around R2.7 billion. She argues that this amount represents money that could have been used for services, infrastructure, or community projects.

Calls for Action

Demands for Investigation

The youth group wants an independent probe into:

  • How tenders are advertised
  • Who the winning bidders really are
  • The total value of each contract

Suspension of Payments

They also ask for an immediate halt to all payments linked to the new tender system until the investigation is complete, to stop further wasteful spending.

Lifestyle Checks

Vilakazi urged authorities to examine the lifestyles of supply‑chain management officials, suggesting that sudden wealth could be a sign of corruption.

Deadline Set by Activists

The group has given the city’s investigative body seven working days to:

  • Issue a formal case reference number
  • Confirm that an investigation has started
  • Provide a lawful reason if they refuse or delay

If the municipality does not meet this deadline, Azania Youth In Action says it will file a high‑court application to compel an investigation and to stop any further payments.

Municipality’s Response

Noluthando Ngubane, the municipality’s media relations officer, said the city cannot comment on unverified allegations. She asked the activists to provide evidence and supporting documents so that proper verification can be done. Ngubane added that, if needed, further checks will be carried out through internal and external procedures.

Political Outlook

Political analysts, including Prince Mashele, predict that Jacob Zuma’s party could win a clean sweep in eThekwini during the upcoming local‑government elections. The corruption claims may influence voter opinions and campaign strategies.

Conclusion

The allegations of a R2.7 billion loss through a biased tender system have sparked a heated debate between youth activists and municipal officials. While the city asks for proof before acting, the activists insist on swift action to protect public funds. The outcome of this dispute could affect both the administration’s credibility and the political landscape in eThekwini as elections approach.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

spot_img

Related articles

Steenhuisen faces demotion as Hill-Lewis proposes a shakeup of the DA cabinet

DA Leader Geordin Hill‑Lewis Calls for Cabinet Reshuffle in Government of National Unity On Tuesday, Democratic Alliance (DA) leader...

Socceroos snatch victory and spoil Turkey’s return to the World Cup

Australia vs Turkey: Clarifying the Recent Match Report By Pearl Josephine Nazare Story audio is generated using AI What Actually Happened? The...

Chloe Bailey stars in psychological thriller Strung

Chloe Bailey Leads Malcolm D. Lee’s New Psychological Thriller “Strung” The upcoming film Strung marks a notable shift for...

PGM miners provide energy to mining production

South African Mining Output Rises in April Amid Cost Pressures Production Gains Driven by Base Effects According to data released...