ABSA Bank
By Nkosana Khumalo
The KwaDukuza Local Municipality in KwaZulu-Natal has officially confirmed that millions of rands were illegally withdrawn from its ABSA bank account last week. Reports suggest that approximately R30 million was illicitly transferred in tranches, but the exact figure is expected to be disclosed following a special council meeting scheduled for tomorrow.
The revelation comes after the MK Party in KwaZulu-Natal exposed the incident, prompting the municipality to issue a public statement. Until then, the municipality had kept the matter under wraps, raising concerns about transparency and accountability in local governance.
Municipality Confirms Suspicious Transactions
In an official media statement issued on 5 February 2025, the KwaDukuza Municipality acknowledged that the ABSA Bank Fraud Division had contacted them on Friday, 31 January 2025, to report suspicious transactions on the municipality’s bank account. Upon verification, ABSA confirmed that these transactions were fraudulent and needed to be halted immediately.
KwaDukuza Municipality’s Official Statement:
“In the afternoon of Friday, 31st January 2025, ABSA Bank Fraud Division contacted the Municipality to advise that there were suspicious transactions that were processed on the municipal banking system. We confirmed with ABSA that those transactions were suspicious and must be stopped.”
Further internal investigations by the municipality revealed that unauthorised activity had indeed taken place, pointing to possible fraudulent interference with the municipality’s banking profiles. The statement continues:
“Upon further investigation by KwaDukuza Municipality on Friday, it emerged that an unlawful or unauthorised activity may have occurred in the Municipality’s primary bank account. 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 systems, thereby infiltrating the Municipal primary bank account.”
This confirms that the incident was not a mere banking error but a deliberate breach, raising serious concerns about internal security, municipal oversight, and financial controls within KwaDukuza Municipality.
How the Money Was Stolen
While the municipality did not initially disclose the exact amount stolen, insiders and the MK Party claim that R30 million was siphoned from the account in multiple transactions. Sources indicate that the funds were transferred in tranches to various undisclosed accounts, making it difficult to track and recover the money immediately.
The municipality has yet to confirm these details officially, but more information is expected to be made public following the special council meeting scheduled for Thursday, 6 February 2025.
Immediate Action Taken by KwaDukuza Municipality
Recognising the seriousness of the situation, municipal officials acted swiftly to prevent further losses. According to the statement, they implemented two key emergency measures:
1. Instructing ABSA Bank to block the municipal primary bank account to prevent additional unauthorised withdrawals.
2. Opening a criminal case at the KwaDukuza Police Station on the same day of the incident (31 January 2025) to launch a full-scale investigation into the fraud.
The municipality confirmed that ABSA has launched its own internal investigation, and on 4 February 2025, ABSA officials visited the KwaDukuza Municipality to gather more information to aid their inquiry.
Political Fallout: The MK Party Exposes the Theft
The incident was not made public by the municipality until the MK Party in KwaZulu-Natal raised the alarm. The party accused the ANC-run municipality of trying to cover up the crime, further alleging that officials had deliberately withheld information from the public.
The MK Party’s public disclosure forced the municipality to release its official media statement.
Critics argue that the delay in informing the public suggests a lack of transparency in handling financial crises. The fact that opposition parties revealed the issue first raises serious questions about whether the municipality would have acknowledged the crime had it not been exposed.
ANC’s Response and the Special Council Meeting
With political pressure mounting, the KwaDukuza Municipality scheduled a special council meeting for Thursday, 6 February 2025, where officials will:
• Present a full report on the incident and reveal the exact amount stolen.
• Discuss measures to recover the lost funds.
• Determine who may have been responsible and whether internal fraud was involved.
• Decide on further security measures to prevent similar incidents in the future.
The meeting is expected to be heated, as opposition parties and concerned residents demand accountability.
Financial Impact and Service Delivery Concerns
The theft of millions from the municipal bank account could have serious implications for service delivery in KwaDukuza.
According to the statement:
“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.”
This means that:
• Service providers expecting payments may experience delays.
• Essential municipal services that rely on these funds could be affected.
• Residents might face disruptions in service delivery until the issue is resolved.
The municipality has pledged to work with ABSA to find a safe way to meet financial obligations without exposing municipal funds to further risk.
Fraud and Corruption in Municipalities: A Growing Crisis?
The KwaDukuza banking fraud scandal is the latest in a series of financial mismanagement cases affecting South African municipalities.
In recent years, several municipalities have suffered fraudulent transactions, misappropriation of funds, and corruption scandals that have undermined public trust.
Recent High-Profile Municipal Banking Scandals in South Africa:
• In 2023, the Makhado Local Municipality in Limpopo lost R5.4 million in an online banking scam.
• In 2024, the Emalahleni Municipality in Mpumalanga was defrauded of R20 million by a syndicate using fake supplier invoices.
• The Msunduzi Municipality also faced controversy after R13 million in COVID-19 relief funds was allegedly siphoned into personal accounts.
The KwaDukuza scandal now adds to concerns about the security of municipal bank accounts and the risk of financial crimes within local government structures.
Public Reaction: Residents Demand Accountability
Following the public revelation of the theft, KwaDukuza residents and local business owners have expressed outrage.
Many are demanding that:
• The names of those responsible be revealed.
• The stolen money be recovered.
• Municipal financial controls be strengthened to prevent future fraud.
One resident, Mandla Zulu, said:
“We cannot afford to lose such huge amounts while people in this community struggle with basic services. Someone must take responsibility!”
The MK Party and other opposition groups have vowed to hold the ANC-led municipality accountable and are calling for a forensic audit into all municipal transactions.
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