By Thabo Mosia
President Cyril Ramaphosa has officially authorised the Special Investigating Unit (SIU) to probe allegations of corruption and maladministration concerning the street light installation tender at the Dihlabeng Local Municipality in the Free State.
SIU’s Proclamation 209 – Investigating the Dihlabeng Street Light Tender
Under Proclamation 209, the SIU is empowered to investigate serious allegations surrounding the procurement and contracting processes for the supply, delivery, and installation of high-mast street lights at Dihlabeng Local Municipality. This investigation will focus on determining whether the tender process adhered to South Africa’s legislative and ethical standards. The SIU is mandated to scrutinise any irregularities, including unauthorised expenditures or violations of National or Provincial Treasury guidelines.
The Dihlabeng Municipality has faced scrutiny over allegations that the tendering process was not conducted transparently or competitively, raising concerns about potential collusion between officials and service providers. The SIU will look into all aspects of this tender, including the involvement of municipal employees and the potential for wasteful or irregular spending.
SIU’s Mandate and the Scope of Proclamation 208
While Proclamation 209 specifically targets Dihlabeng Municipality, Proclamation 208 broadens the SIU’s investigative powers to include six additional tenders awarded by the African Exploration Mining and Finance Corporation (AEMFC). These investigations will cover a range of contracts, including coal insourcing, asset-based financial services, and diesel supply. The goal is to identify any evidence of misconduct, improper procurement practices, or financial losses resulting from these contracts.
The SIU’s mandate, in both proclamations, extends to examining whether these procurement practices resulted in unlawful financial benefits or undue advantages for specific individuals or entities. If evidence of corruption or fraud is uncovered, the SIU is prepared to recommend criminal proceedings through the National Prosecuting Authority (NPA) and pursue civil actions to recover lost public funds.
Background and the Necessity for SIU Intervention
The Dihlabeng Municipality, like many other municipalities in South Africa, has experienced governance challenges and allegations of maladministration in recent years. In 2023, the Hawks initiated a separate investigation following reports from the Free State Premier’s office that implicated several high-ranking officials in fraudulent activities related to a generator installation at Saulspoort Dam. This case saw the arrest of Thabang Johannes Thinyane, a service provider, along with Municipal Director Ntokozo Erick Shabalala and Municipal Manager Lekgetho Isaac Mokgathle.
The three individuals were charged with fraud, forgery, and breaches of the Municipal Finance Management Act (MFMA). According to the Hawks, the generator project was not completed as per the contract terms, resulting in a R611,000 financial loss for the municipality. Although the trio were granted bail, the case underscored the extent of corruption issues within the Dihlabeng Municipality and heightened calls for a broader investigation.
Ramaphosa’s Commitment to Accountability in Local Government
President Ramaphosa’s decision to mandate the SIU investigation reflects a commitment to fostering accountability at all levels of government. His proclamations align with broader efforts to combat corruption and uphold ethical governance, particularly within municipalities that manage essential services for communities. Local governments are critical in delivering public services, and any misuse of funds or unethical practices undermines public trust and affects service delivery.
The President’s intervention also responds to calls from civil society and anti-corruption advocates who argue that without accountability, instances of maladministration may become more prevalent. By directing the SIU to investigate, Ramaphosa reinforces his stance that public officials must act transparently and responsibly in managing taxpayer funds.
DA and EFF’s Reactions to SIU Investigation
Political entities such as the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) have welcomed the President’s decision to authorise a thorough investigation. The DA has previously raised concerns about alleged corruption within the Dihlabeng Municipality, arguing that political interference and mismanagement have weakened governance structures.
The EFF, on the other hand, has been vocal about alleged corruption and inefficiency within municipalities across the Free State, calling for stricter oversight and regular auditing of municipal projects. Both parties agree that an independent SIU investigation could expose any unethical practices within the Dihlabeng Municipality and restore public confidence in the municipality’s leadership.
SIU’s Investigative Process and Expected Outcomes
The SIU’s investigation is expected to be comprehensive, examining all records, communications, and financial transactions related to the Dihlabeng street light tender. The Unit will investigate any conflicts of interest, undue influence, or collusion among officials and suppliers. The SIU also has the authority to interview witnesses, subpoena records, and conduct audits to uncover potential instances of fraud.
If the SIU finds substantial evidence of corruption, it will refer the matter to the NPA, which may pursue criminal charges against individuals involved. Additionally, the SIU is authorised to file civil suits in the High Court or a Special Tribunal to recover any funds lost due to corruption or maladministration.
The SIU’s focus extends beyond uncovering isolated cases of misconduct; it also aims to identify systemic issues within Dihlabeng Municipality that may have enabled unethical practices. Based on its findings, the SIU could recommend policy changes and improved governance frameworks to prevent future incidents.
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