The Special Investigating Unit (SIU) has referred contracts worth R1.1 billion to municipalities for civil proceedings, in cases dating back to 2012. During the same period, contracts valued at R545 million were declared invalid and set aside. SIU acting head Leonard Lekgetho revealed these figures while briefing the Standing Committee on Public Accounts (Scopa) on investigations conducted across municipalities nationwide.
Investigations and Outcomes
Lekgetho said that, despite the scale of the cases, only R1.1 million has been recovered so far, while R58.9 million in potential cash or assets remains targeted for recovery. The SIU’s investigations led to 362 referrals to the National Prosecuting Authority for criminal investigation, 222 referrals for disciplinary action against officials, and 629 referrals for administrative action over the same period.
He noted that there were currently four active municipal investigations, with 15 already completed across the Free State, North West, Gauteng, and KwaZulu-Natal provinces. In the Free State, two active proclamations were under way at Masilonyana Municipality, while one has been completed at Maluti-A-Phofung Municipality.
Patterns of Corruption
Patterns emerging from these proclamations point to irregular appointment of service providers, corruption, missing tender documents, irregular expenditure, contractor non-performance, failure to follow supply chain processes, and misconduct by officials. “At the centre, there is Municipal Finance Management Act contraventions,” Lekgetho said.
In eThekwini, the SIU uncovered maladministration in an ongoing investigation into water and sanitation services provided to human settlements and schools. “There are seven contracts under the project involving procurement irregularities and non-performance,” Lekgetho said. A total of 18 officials have been implicated and referred for disciplinary action, with those cases currently under review by the municipality.
Some of the key issues that have been identified by the SIU include:
- Irregular appointment of service providers
- Corruption
- Missing tender documents
- Irregular expenditure
- Contractor non-performance
- Failure to follow supply chain processes
- Misconduct by officials
For more information on the Municipal Finance Management Act, visit the National Treasury website.
