Forensic investigators employed by KwaZulu-Natal's social development department have recommended that 163 project managers be charged with fraud, officials said on Tuesday.

Nine of the department's employees also face internal disciplinary hearings, finance MEC Ina Cronje and social development MEC Meshack Radebe told journalists in Pietermaritzburg.

The investigators further recommended certain bank accounts be frozen. The matter had been referred to the SA Police Service's commercial crimes unit, they said.

The alleged corruption was happening in the department's sustainable livelihood projects, which the department ran with NGOs.

Widespread collusion

The investigations found there was collusion between officials of the department, members of various organisations and suppliers in perpetrating the alleged offences.

The department hopes to recover over R60-million of public funds which allegedly went into the wrong hands.

The two departments believed the implementation of the findings and recommendations would prevent similar occurrences and would send a clear message to all public officials and the public that fraud, corruption and theft were not tolerated.

The Democratic Alliance's John Steenhuisen said the party was disappointed that the full forensic report was not released as some of the investigations were at a sensitive stage.

"This report must be made available immediately after the sensitive aspects have been finalised," he said.

Poor financial control

Mentioned in the report were major problems with financial management controls and asset management, he said.

"The report also shows that there was collusion between officials of the department, members of various organisations and suppliers in perpetrating the alleged offences."

He said he believed serious systems weaknesses in the department had provided a fertile ground for corruption.

Never work in government again

"Whilst the DA is aware that police investigations do take time, the longer it takes to finalise formal charges, the less likely the chances of a successful prosecution."

He said they were also concerned that documentary evidence could be destroyed by implicated officials.

"The DA would like to see the department moving far more swiftly to suspend those government officials implicated - if found guilty they must never be able to be employed in the public service again."