Durban — The chairperson of the KwaZulu-Natal Growth Fund Trust has been removed from the entity after his arrest in a corruption case in Mhlathuze Water Board.
Silas Hlophe, who was appointed as Mhlathuze Water Board deputy chairperson in 2018, was fingered in the R37 million tender scandal and appeared in the Durban Specialised Commercial Crime Court on charges of corruption last month.
He was freed on R10 000 bail.
His sacking was confirmed by the Economic Development, Tourism and Environmental Affairs Department which the entity falls under.
In a response to a media query made by Daily News, department spokesperson Angel Sibisi said: “Yes I can confirm that he has been removed as the chairperson of the KZN Growth Fund.”
When asked about whether his role in other boards and entities would be affected, Sibisi said: “Unfortunately, I can’t speak on his role in other entities and agencies, but I can confirm that he has been removed as the chairperson of the KZN Growth Fund.”
Sibisi added that at this stage the board had not appointed an interim or acting chairperson.
After he was released on bail last month, the Fund had said it was assessing the implication of his arrest.
Hlophe was arrested by the Hawks’ National Clean Audit Task Team recently and appeared in court alongside five other suspects – Siyabonga Bhengu, Nofezile Mhlanga, Maria Gevers, Amita Abdul and Duduzile Chiliza. The five were granted bail of R5 000 to R10 000. They face charges of fraud, money laundering and defeating the ends of justice.
The latest arrest brought the total number of accused charged in connection with the matter to 14.
According to the State, the six accused, with eight others, improperly benefited from a legal services tender issued to probe irregular expenditures at the entity from 2017 to 2018.
Hlophe was appointed as deputy chairperson of the uMhlathuze Water Board in 2018.
Speaking on behalf of the Fund, Khuthalani Dlamini said: “In response to the query regarding the dismissal of the KZN Growth Fund Trust Board Chairperson, Mr Silas Hlophe, as a result of his arrest and alleged involvement in the Mhlathuze Water Board corruption case, please be advised that Mr Hlophe has not been removed or dismissed in relation to this case and/or arrest as you seem to insinuate.”
According to other media reports, Badul and Gevers allegedly disclosed confidential information from a forensic investigation into the corruption to former Mhlathuze Water Board CEO Mthokozisi Duze and former CFO Babongile Myandu, who are also facing charges in connection with the matter.
Duze and Mnyandu are alleged to have irregularly appointed a law firm owned by Ralph Mhlanga, who is also charged in the matter.
Nofezile Mhlanga, the wife of Ralph Mhlanga, is charged with money laundering amounting to R18m. The money was allegedly paid by the water board to her company, NCD Investments, and used to build her family mansion in northern KwaZulu-Natal. Bhengu is an architect who is said to have built a luxury home for the Mhlanga couple.
Hlophe allegedly told his employees not to co-operate with investigators probing corruption at the board.
It is alleged that Duze and Mnyandu coerced their employees to approve irregular payments amounting to more than R30m to Ralph Mhlanga.
It is unclear whether Hlophe will still be able to lead the Fund board members in a court battle with dairy product company, Goodlife, which took the growth fund to court over the cancellation of funding of R72m it had already approved for the business. The dairy firm’s owner, Busi Gumede, believes her funding was withheld because she refused a meeting with a board member she believed wanted to solicit bribes for funding her business.
A court date is expected to be set soon.
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