The Special Investigating Unit (SIU) has referred contracts valued at R1.1 billion to municipalities for civil proceedings, highlighting ongoing issues in public procurement since 2012. This was revealed by SIU acting head Leonard Lekgetho when he briefed the Standing Committee on Public Accounts (Scopa) about their investigations conducted in municipalities across the country.
Lekgetho said the SIU had recovered only R1.1m, while R58.9m of potential cash or assets were to be recovered to date. He further said there was a total of 362 referrals to the National Prosecuting Authority for criminal investigation, 222 for disciplinary action against officials, and 629 referrals for administrative action during the same period.
Municipal Contracts Under Scrutiny
The SIU has submitted a motivation to the Justice and Constitutional Development Department for a proclamation to investigate the Mangaung and Mafube local municipalities. Lekgetho also said an investigation was underway at Mahikeng Municipality, while two were completed at JB Marks, and one each at the City of Matlosana and Ditsobotla Municipality.
In the Free State, there are two active proclamations at Masilonyana Municipality and one completed at Maluti-A-Phofung Municipality. Whereas one proclamation was active in the Tshwane Metro, two others were already completed there, along with two in the City of Johannesburg and one in the Ekurhuleni Metro.
Investigations in KwaZulu-Natal
There were six investigations in KwaZulu-Natal, with one already underway at eThekwini Metro and four others completed at the same municipality, and one at Msunduzi Municipality. Lekgetho said the pattern from the proclamations showed that there was irregular appointment of service providers, corruption, missing tender documents, irregular expenditure, contractors failing to perform, supply chain processes not being followed, and misconduct by officials.
Some of the key issues identified by the SIU include:
- Irregular appointment of service providers
- Corruption
- Missing tender documents
- Irregular expenditure
- Contractors failing to perform
Regarding the investigation at Tshwane Metro, Lekgetho said the SIU is probing Phase one upgrades and urgent refurbishment at the Rooivaal Wastewater Treatment Works. The procurement irregularities and misrepresentations resulted in the irregular appointment of the contractor. For more information on the Municipal Finance Management Act, visit the National Treasury website.
