The sentence was meted out on Thursday, 8 September, in the Pietermaritzburg high court. The high court sentenced the former head of the KwaZulu-Natal Provincial Treasury, Dumisani Sipho Derrick Shabalala, to an effective 15 years imprisonment following his conviction for fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA).

Shabalala was handed 15 years imprisonment for fraud, 15 years for corruption, 10 years for money laundering and five years for contravening the PFMA. However, the sentences run concurrently meaning he will effectively serve a total of 15 years.

National Prosecuting Authority KwaZulu-Natal spokesperson Natasha Ramkissoon-Kara explained that the corruption occurred between 2004 and 2007 when Shabalala formed a relationship with Uruguayan businessman Gaston Savoi and the company Intaka Investments.

During that time, she said, Shabalala, travelled to Brazil to view the purification equipment. 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 purifications plants from Intaka.

“The process culminated in the awarding of a contract of 22 Wataka plants. Shabalala was the chairperson of the procurement committee that awarded the contract,” Ramkissoon-Kara said.

She reiterated the conviction on the contravention of the PFMA in the high court reflecting the pointed focus on holding government officials accountable for corruption, using this piece of legislation.

At the time of sentencing, Shabalala was out on bail. He has since filed an application for leave to appeal and, as such, his bail was extended to 13 September when the court will hear his application.

Director of Public Prosecutions, advocate Elaine Zungu, lauded the outcome and commended the stellar work done by the prosecution and investigating teams.

“This sentence indicates that even though the wheels of justice may turn slowly in such complex cases of corruption, they do turn. The NPA will continue with its mandate of rooting out corruption, especially in the government sector,” Zungu said.

Meanwhile, the name Gaston Savoi is no stranger to alleged corrupt dealings in South Africa. His name popped up during the Zondo Commission of Inquiry into State Capture.

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PricewaterhouseCoopers forensic auditor, Trevor previously testified that the businessman was introduced into the KwaZulu-Natal government circles by the then head of provincial treasury, Shabalala, who was his initial accomplice in another colluding scheme.

Shabalala and his wife, Beatrice Shabalala, are said to have played the leading role in the irregular R144-million procurement deal which came to be known popularly as the ‘Amigos’ case.

The first arrests of the 21 suspects charged with racketeering, corruption, and fraud in the case were made in 2010 and 12 years later the matter is still dragging before the courts.

During proceedings in the Pietermaritzburg high court on 29 January 2021 the NPA contended that Savoi and others participated in a criminal enterprise involving the supply of water purification plants and oxygen self-generating units in KZN and Northern Cape Departments of Health.

During proceedings, Savoi and others in its interlocutory applications averred that 69 documents seized by the State on various operations are protected by legal professional privilege.

Papers showed the documents in question were obtained on three different occasions. Firstly when a search was conducted on 27 August 2009 at the Intaka officers, thereafter when Savoi was arrested on 3 November 2010 and then when subpoenas were issued on 25 January 2011.

However, the court in dismissing the application found: “What is evident from this interlocutory application is that they (Savoi and others) want the court hearing the application for the permanent stay to decide on the admissibility of documents yet presented to the trial court. In my view, it will lead to a piecemeal trial process.

“The applicants will indeed be able to challenge evidence illegally obtained during the criminal trial. If there had been any abuse of obtaining then the trial court would be the best forum to decide on allegations of abuse.”

The application heard on 29 January 2021 is part of a series of applications Savoi and others brought after they launched their permanent stay application on 27 May 2013. The Savoi and others matter has been remanded until 14 November 2022 when application for a permanent stay of prosecution will be heard.

Meanwhile Shabalala is back in court on Tuesday, 13 September when his application for leave to appeal will be heard. DM