FROM: MINISTRY OF LOCAL GOVERNMENT HOUSING & TRADITIONAL AFFAIRS - KWAZULU - NATAL

Date : 05 August 2004

Arising from allegations of irregularities and fraud leveled in respect of the Nomponjwana Water Scheme within the Ntambanana Municipal area through the Department of Justice's Anti-Corruption Hotline and a result of the Uthungulu District Municipality, being the water service authority for the area, subsequent discovering shortfalls in the receipt books and deposits of the said Water Scheme, my Department requested to launch a forensic investigation into this matter.

As a result and in the follow up thereof, I have therefore, in my capacity as the MEC responsible for Local Government in the Province of Kwazulu-Natal, iniated an investigation at the Ntambanana Municipality relation to the Nomponjwana Water Scheme, in terms of section 106(1)(b) of the Local Government Municipal Systems Act, Act 32 of 2000

Once the recommendations of the Service Provider appointed in the above regard have been received, my Department will then monitor that whatever actions are deemed necessary are taken by the Municipality to restore to normality the situation that is now prevailing within the Ntambanana Municipality.

I, as Minister, and my Department will continue to make every effort to ensure that the Municipality implements effective, efficient, transparent and accountable financial management and internal control systems in the interests of sustainable and affordable service delivery to all residents who make use of and rely on the services of this Water Scheme.

Yours sincerely

; Mr. D H Makhaye (MEC)