By Phenyo Selinda
President Cyril Ramaphosa has signed Proclamation 172 of 2024, giving the Special Investigating Unit (SIU) the mandate to investigate allegations of serious maladministration within the O.R. Tambo District Municipality in the Eastern Cape.
This move, aimed at recovering any financial losses incurred by the State or the municipality, specifically targets irregularities related to the procurement of five water supply structures. The investigation, which will be conducted under the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), covers a wide range of alleged misconduct, including corruption, fraud, and maladministration.
The contracts under scrutiny involve significant infrastructure projects intended to improve water supply in the region, including:
• The Signal Hill Reservoir: The appointment of Amatola Water Board in 2019 and the alleged irregular payment made to the board in 2020.
• The Manduli Bulk Water Scheme: The involvement of Ginasonke Engineers and an alleged irregular payment made to the company in 2019.
• The Mganduli Bulk Water Scheme: The appointment of Khwalo’s Construction and the alleged irregular payment made to them in 2019.
• The Mhlontlo Cluster 1 Pump Installation: The appointment of Valotone 94 CC and Phoenix Tanks (Pty) Ltd in 2019, along with alleged irregular payments made in the same year.
• The Electrification of the Mthatha Dam and Highbury: The construction of the Thornbill Clear Water Pump Station and the alleged irregularities regarding payments to Amatola for projects conducted in 2018 and 2019.The SIU’s investigation is set to cover all unlawful or improper conduct by officials, service providers, or any other entities connected with these contracts. The scope includes allegations dating back to 1 January 2018 and extends to any relevant activities discovered after the proclamation’s publication on 16 August 2024.
In addition to examining financial misconduct, the SIU will also seek to identify and address systemic failures within the municipality that may have allowed these irregularities to occur. This could lead to recommendations aimed at preventing future occurrences of similar issues.
The investigation will also focus on recovering any unauthorised, irregular, fruitless, or wasteful expenditure that has occurred. Should the SIU uncover evidence of criminal activity, it is empowered to refer the matter to the National Prosecuting Authority (NPA) for further action. Additionally, the SIU can institute civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during its investigation.
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