The ANC-led KwaDukuza Local Municipality in KwaZulu-Natal has officially confirmed that funds were illegally siphoned from its ABSA bank account on Friday last week.
The confirmation comes after alleged attempts to keep the matter under wraps as it is believed that this could be an inside job.
However, the Umkhonto Wesizwe (MK) Party in the province blew the whistle, forcing the municipality to come out and confirm the theft.
The municipality did not say how much was stolen while the MK Party pegged the theft at R30 million.
The exact amount that was stolen will be known tomorrow (Thursday, February 6) after a special council meeting that has been called to discuss the matter.
In a statement, the KwaDukuza Local Municipality claimed that it was alerted about the fraud by the bank and the account was then suspended to prevent further movement of funds. It added that a case of fraud was opened on the day of the incident.
“It is suspected that an individual/s acted in [a] manner intended to interfere with the municipality’s banking profiles and constitute a breach of the financial system, thereby infiltrating the municipal primary bank account,” the municipality said.
It added that yesterday, 4th February 2025, ABSA bank sent an official to its offices to seek information that will assist them in their continued investigation.
“All payments were halted pending a report on what transpired. The Municipality appreciates the inconvenience this causes to our creditors, and we plead for their understanding and patience.
On our part, we will impress upon ABSA to help us find a safe way to meet our obligations without exposing the Municipality to further risk,” the municipality added.
It urged those who owed the municipality to make payments as the bank account remained open for deposits.
“We also call upon those who need to pay what is due to the Municipality to continue to do so as funds coming into the account are not suspended. We would like to assure the people of KwaDukuza that we will do everything in our power to bring the perpetrators of this crime to book.”
