KwaDukuza reacts to a scam targeting municipal contractors listed under the disaster panel

KwaDukuza Municipality continues to ring the alarm bells on the upsurge of fraudulent activities orchestrated by faceless perpetrators of which the latest target have been municipal service providers.

This follows the latest fraudulent letters that were shared in the past few days via email to several service providers.

The affected service providers have confirmed receipt of fraudulent emails which carried the following subject-line, "Intention to award the contract of a project."

Most of these service providers are already in business with the municipality under various panel of contractors. The fraudulent letters are purported to have been issued by the office of the municipal manager and these emails were subsequently followed by a series of phone calls from an anonymous number and WhatsApp messages to the affected service providers.


The fake intention to award letters were not signed by the municipal manager nor any of the senior official and it is in this background that KwaDukuza wishes to caution all service providers about this latest scam. 

In our preliminary investigation, we also learned that the scammers have been contacting service providers, requesting large sums of cash to be deposited to a particular Bank Account. 

The service providers who we have been interviewed confirmed that the money requested is to be used for funding a trip to Mbombela by certain individuals. 


The perpetrators have also used the Personal Assistant (PA) to the Municipal Manager as a decoy to legitimise their fake letters. 

In our preliminary investigation, we found that the fraudsters are using a Xhosa speaking women as their decoy to impersonate the PA to the municipal manager. It must be placed on record that the PA to the municipal manager only speaks English and IsiZulu for business purposes.

The fraudsters are also using the names of senior officials to advance their agenda. The officials that have been named in such phone calls are not at all associated with any of the tenders presented by the fraudsters or even part of this shameless scam. 

It must be categorically stated that KwaDukuza Municipality or any official will not under any circumstances demand funds from any service provider or solicit money in whichever way. This is in principle, amounts to fraud and leads to possible immediate dismissal. All public servants receive a monthly salary and other approved benefits other that cash from service providers.

All Service providers are to take note of the following:

1. KwaDukuza Municipality does not issue "Intention to award notices", instead we formally write to individual bidders regarding the outcome of their bids.

2. The Municipal Manager (Mr. N.J. Mdakane) is currently on official leave and is not allowed to participate in any official activity which includes issuing letters of awards or cancellation of contracts. An acting official who is duly appointed by council is empowered with such responsibility thereof.

3. The Municipal Manager or any official do not fundraise or request for donations for whatever purpose. The Mbombela Trip that has come up through our investigation is fallacious and has nothing to do with the municipality. Our focus for now is service delivery and it will be so until we realize our long term vision of becoming a sustainable city.

4. The Municipality urges all service providers to block the fraudulent emails and open criminal case with local police. 

Please further report any suspicious fraud or unethical conduct on our Anti-Corruption Toll Free Number 0800 701 701.

Ends


Issued by the Chief Operations Officer, KwaDukuza Municipality

Mr. Mandla Manzini |  mandlam@kwadukuza.gov.za


Media Enquiries: Sphe Ngobese | 073 784 7822

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