The conviction of Dumisani Sipho Derrick Shabalala relates to his receipt of R1.5-million from Intaka Investments for the acquisition of “Wataka” water-purification plants valued at R44-million, according to the National Prosecuting Authority’s KwaZulu-Natal spokesperson, Natasha Ramkisson-Kara.

“The offence occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi, and the company Intaka Investments. Shabalala then travelled to Brazil to view the purification equipment,” she said.

“On his return to South Africa, Shabalala wrote to then minister Dr Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water-purification plants from Intaka.”

According to Ramkisson-Kara, the process culminated in the awarding of a contract for 22 “Wataka” plants. Shabalala was the chairperson of the procurement committee that irregularly awarded the contract.

This matter will return to the Durban High Court on 5 September for sentencing proceedings. His bail conditions have been extended.

“The NPA has welcomed the outcome and it reflects that even though it may appear that the wheels of justice turn very slowly in such cases of corruption, they do actually turn,” Ramkisson-Kara explained.

Savoi is no stranger when it comes to alleged irregularity in South Africa. PricewaterhouseCoopers forensic auditor Trevor White, in his case-related testimony on 22 January 2020, revealed to the Zondo State Capture Commission that the head of the health department in KwaZulu-Natal, Busisiwe Nyembezi, collaborated with Savoi to unduly influence a tender procedure.

White had previously testified that the businessman was introduced into KwaZulu-Natal government circles by Shabalala – the then head of the provincial treasury – who was his initial accomplice in another collusion scheme.

White also detailed how Savoi, alongside ANC top officials, benefited from an irregular R144-million procurement deal which came to be known as the “Amigos case”.

An analysis by Glynnis Underhill in 2015 further demonstrates how the R144-million “Amigos” corruption and racketeering case is shrouded in controversy.

The first arrests of the 21 suspects charged with racketeering, corruption and fraud in the case were made in 2010 and almost 10 years later the matter is still before the courts. Among those arrested were ANC heavyweights in KwaZulu-Natal – the then health MEC Peggy Nkonyeni and MEC for cooperative governance and traditional affairs Mike Mabuyakhulu. By 2018, charges against Nkonyeni, Mabuyakhulu and those said to have political connections had been withdrawn, leaving only nine suspects to face the court.

In 2015, the ANC’s Northern Cape leader, John Block, was found guilty of fraud, corruption and money laundering by the Northern Cape High Court. The case, relating to tenders for the province’s health department, dates back almost five years. In 2016, he was sentenced to 15 years in jail.

Block’s co-accused is Savoi, who was fingered in a massive tenders-for-kickbacks scandal that was operated through his company, the Intaka Health Group.

The magnitude of tender irregularities and scams was highlighted by the government in September 2016 when it warned that although it had done more than enough to alert the country to illegal government order scams, it seemed more and more South Africans were falling victim to them.

In that year alone the Department of Water and Sanitation (DWS) received no fewer than 15 complaints from scam victims who had lost many millions to syndicates.

Corruption and fraud in the DWS, and the collapse of local governance, mean taps in many towns and villages have either run dry or the water is undrinkable.

In January 2021, an interlocutory application by Savoi, Intaka Holdings and Fernando Praderi, claiming that some documents seized by the state in various operations were protected by professional privilege, was dismissed in the KwaZulu-Natal High Court in Pietermaritzburg.

This application was part of a series brought by the trio after they launched an application for a permanent stay of prosecution on 27 May 2013.

The applicants are charged with bribery, racketeering, money laundering, fraud and corruption in KwaZulu-Natal and the Northern Cape. The State contends that Savoi participated in a criminal enterprise involving the supply of water-purification plants and oxygen self-generating units to those provinces.

Ramkisson-Kara added that another application for a permanent stay of prosecution by Savoi and his co-accused will be heard on 12 August. DM