eThekwini Refuses to Cancel R19.3m Moriel Contract After Director's Arrest
- eThekwini Municipality confirmed it will maintain its sewer contract with Moriel Infrastructure Group despite the arrest of the company's former director
- National ministers ordered probes into Moriel's government contracts while private entities cut ties with the firm following a viral intimidation video
- ActionSA launched a formal inquiry demanding full disclosure of all municipal deals with Moriel under council rules
PAY ATTENTION: Mark Briefly News as a preferred source, and our content will appear higher in your Google feed!
Source: UGC
DURBAN — eThekwini Municipality has confirmed it will not end its business relationship with Moriel Infrastructure Group, even as the company's former director, Lawrence Chamurwa Mudzinganyima, faces criminal charges and government departments move to scrutinise the firm's contracts.
According to IOL, the municipality's stance centres on a sewer reticulation project in North Park. The contract was originally awarded at R16.1 million but grew to R19.3 million once price escalation provisions and contingencies were factored in. eThekwini Water and Sanitation officials confirmed the project commenced in May 2025 and stands at 95% completion, with a deadline of 1 November 2026.
The municipality argued that terminating a contract requires specific breaches under the Municipal Finance Management Act, and that criminal proceedings against an individual fall under law enforcement, not procurement oversight.
National ministers order probes
The municipality's position puts it at odds with several national government departments. Transport Minister Barbara Creecy instructed SANRAL to probe Moriel's road contracts, while Public Works Minister Dean Macpherson directed the Construction Industry Development Board to investigate whether the company used irregular tender grading to secure work. Private sector entities, including Steyn City, have also cut ties with the firm.
PAY ATTENTION: You can now search for all your favourite news and topics on Briefly News.
ActionSA responded by filing a formal inquiry under Section 27(3) of council rules, demanding that eThekwini disclose the full extent of its dealings with Moriel.
Read ActionSA's formal inquiry on X here:
Arrest followed viral restaurant video
The controversy stems from the arrest of Mudzinganyima on 20 September 2026. A video circulating online showed him threatening to shoot women inside a Sandton restaurant bathroom. He was charged with intimidation and released on warning, and is expected to appear in court on 1 October 2026 at the Randburg Magistrate's Court. Moriel also axed him from all positions within the company.
Despite the public outrage and the actions taken by both government departments and private entities, eThekwini has maintained that its contractual obligations with Moriel remain unaffected by the conduct of individuals no longer associated with the firm.
Transport minister orders probe into Mudzinganyama
In a related article, Briefly News reported on Transport Minister Barbara Creecy’s directive for SANRAL to investigate Moriel Infrastructure Group’s appointment and government contract. The inquiry follows public scrutiny of the company’s alleged ties to Zimbabwean businessman Lawrence Mudzinganyama.
PAY ATTENTION: Follow Briefly News on Twitter and never miss the hottest topics! Find us at @brieflyza!
Source: Briefly News
