11 February 2025
Stephanie Walker, Executive Officer, DOCRRA
064 737 2269
stephanie@docrra.co.za
www.docrra.co.za
On 5 February 2025, KDM issued a press statement confirming that ‘unauthorised activity’ had taken place affecting the primary municipal account, on 31 January 2025. They characterized the incident as a ‘deliberate breach’ rather than a banking error and opened a case with SAPS. Prior to this statement, a video of a political party member, disclosing the alleged theft of R30 million, was widely circulated in the community, raising the alarm. Subsequently, a press statement, issued by COGTA, confirmed the amount missing as approximately R37 million.
Lack of Proactive Communication
As with the electricity crisis, this incident has highlighted KDM’s abject failure to communicate in a timely and transparent manner. Despite the incident occurring on 31 January 2025, and ABSA Bank immediately alerting municipal officials, no information was released until 5 February 2025, AND, not until after information had already been shared by someone outside the municipal office. This clearly demonstrates that KDM has a leak within their office who shared the incident prior to their statement, and also begs the question as to if, and when, they were planning to disclose the breach to the public. This behaviour only serves to erode trust, which already sits at an all-time low.
Transparency and Accountability Must Be Restored
Until the facts are established, it must be assumed that this incident was only possible due to collusion from individual(s) within the municipality, whether they be from the IT department, the municipal executive committee, the administration, or individuals that may have colluded together. As such, an external, independent entity must be appointed to conduct a full forensic investigation to determine what has occurred and ensure that the municipal financial systems are no longer susceptible to further breaches.
All investigative reports must be made public as soon as they become available, including the initial report from ABSA Bank. We expect all municipal officials and employees to fully cooperate with the SAPS investigation, as well as any other authority who may be called upon to look into this incident. Any individual(s) suspected to have defrauded the municipality, or to have aided thereto, must be immediately suspended from their position pending investigation. Perpetrators must be prosecuted to the fullest extent of the law and face the legal consequences of their actions.
Seeing this investigation through from initial fact-finding to successful prosecution is critical to restore accountability, trust, and must serve as a warning to those who seek to enrich themselves at the cost of ordinary citizens. Whilst this matter now rests in the hands of the authorities, we will be closely following the progress of this investigation and will keep the community updated.
Join DOCRRA and help to make a difference: https://docrra.co.za/membership/
Ends.
For media inquiries:
Stephanie Walker, Executive Officer, DOCRRA
064 737 2269
stephanie@docrra.co.za
Want regular DOCRRA updates? Join our WhatsApp group and follow us on social media.
Stand in solidarity with thousands of other like-minded residents.
