Durban - The DA-run uMngeni Municipality (Howick) has officially confirmed to IOL that it is investigating the invoices of Mhlanga Inc, a law firm run by Durban-based lawyer Sthembelo Ralph Mhlanga.
Mhlanga was late last month arrested together with suspended Mhlathuze Water CEO Mthokozisi Duze, director-general in the Office of the KwaZulu-Natal Premier Dr Nonhlanhla Mkhize, and three others for alleged corruption at Mhlathuze Water in Richards Bay.
The charges relate to over-billing for legal work, and allegations that the extra money was meant to pay kickbacks to officials at the water entity.
Chris Pappas, uMngeni’s mayor, said Mhlanga's firm allegedly charged the municipality three times more than what others in the industry levied for similar work.
It is said the ANC, which was in charge of the municipality at that time, never lifted a finger to address the excess payments.
“The executive committee of the uMngeni Municipality has started an investigation into the appointment (of) and costs associated with Mhlanga Incorporated.
“This is in line with the municipality’s stance on consequence management and good financial management.
“At a special in-committee sitting of the executive committee, councillors deliberated on the process that was followed when appointing Mhlanga Inc, as well as the enormous costs associated with their appointment.
“The uMngeni Municipality was saddled with a huge legal bill in the last financial year (2021/2022) after Mhlanga Inc was appointed as the independent investigator to provide advice to council on the corruption that was uncovered by the (Special Investigating Unit) as it relates to Covid-19 expenditure,” Pappas said.
UPDATE: The DA-run Umgeni (Howick) local municipality has officially confirmed to @IOL that it is indeed probing the billing of Mhlanga Inc, a law firm run by Durban-based lawyer, Sthembelo Ralph Mhlanga, who was arrested together with Mhlathuze water CEO, Mthokozisi Duze and
— Sihle Mavuso (@ZANewsFlash) September 23, 2022
He revealed that, when the municipality was wrested from the ANC in November last year, it was dysfunctional and nearly bankrupt. He said Mhlanga took advantage of the lax accountability in place during the Covid-19 period.
“The preliminary investigation has revealed that Mhlanga Inc has seriously overcharged the municipality and has taken advantage of a time-bound and serious matter that was faced by the municipality at the time.
“Introductory evidence indicates that uMngeni Municipality could have been over-billed by up to three times as much as the industry-accepted rates on a number of line items.
“The first sitting of exco has provided a strong basis for the internal investigation. The meeting was adjourned after councillors requested additional informal and outside legal advice on some of the presented items.”
When Mhlanga was asked about the matter, he said the firm’s fees were high. He added that black lawyers deserved to be paid like their white peers.
"White or black peers? Ask yourself that, Bhuti, and carry on with your story. I will not glorify it. Just so you know: black lawyers deserve to be paid properly for the quality work they produce, just like their white peers," Mhlanga responded.
Mhlanga and four others are currently out on bail for the Mhlathuze matter, and will return to court in December.
Duze is currently in holding cells and is now taking his fight for bail to the Durban High Court, after the specialised commercial crimes court refused him bail on the basis that he posed a threat to witnesses.
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