President Cyril Ramaphosa has signed a proclamation that authorises the Special Investigating Unit (SIU) to probe the KwaZulu-Natal department of transport for maladministration.
According to SIU spokesperson Kaizer Kganyago, the SIU will investigate any alleged illegal conduct, misappropriation, and futile expenditure in the department.
Kganyago said the investigation will focus on offences that took place between March 3 2006 and the date of publication of the proclamation or “which took place prior to March 3 2006 or after the date of publication of this proclamation”.
“Proclamation R.76 of 2022 authorises the SIU to investigate serious maladministration in connection with the affairs of the KwaZulu-Natal department of transport including the causes of such maladministration, which has led to the department incurring irregular expenditure and fruitless and wasteful expenditure as identified by the auditor-general of South Africa in the AGSA Final Management Report dated 31 March 2019; and the AGSA Final Management Report dated 31 March 2021,” said Kganyago.
“The SIU will also investigate any alleged serious, improper or unlawful conduct by employees of the department, unlawful appropriation or expenditure of public money, unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing upon state property, intentional or negligent loss of public money or damage to public property, offence referred to in parts or sections of the Prevention and Combating of Corrupt Activities Act, 2004 [Act No. 12 of 2004].”
In June 2021, the SIU said it would have to recover any financial losses suffered by the government if the allegations that had not been cleared were proven true.
“The investigation will focus on the 10 August 2018 procurement of, or contracting for the construction of an 8km concrete barrier wall between uMkanyakude and Mozambique border, and payments made in respect thereof,” the SIU said at the time.
The tender was awarded to a joint venture between ISF Construction and Shula Construction with a value of over R85-million.
A report of the portfolio committee on public works and infrastructure showed [at the time] that only 0.166km of work was completed and an enormous amount of R48-million had already been paid to the contractor. This amount was supposed to have been spent on a 3km border wall placement.
Kganyago said Ramaphosa signed 13 other proclamations allowing the SIU to probe government entities and departments including the South African Social Security Agency (Sassa), provincial departments of health, Newcastle municipality, and the South African Council of Educators (Sace).
Kganyago said: “The SIU investigation [into health departments] will focus on unlawful or improper conduct by claimants or applicants in respect to medical negligence claims that were fraudulent, improper or unlawful by any person or entity that unduly benefited themselves or any other person. The SIU will also investigate any irregular, fruitless and wasteful expenditure incurred by institutions or the state.
“The probe will cover claims that took place between 1 January 2013 and 22 July 2022, the date of the proclamation or which took place prior to 1 January 2013 or after the date of publication of this proclamation, but is relevant to, connected with, incidental or ancillary to the matters investigated or involve the same persons, entities or contracts investigated.”
He said at the Sace, the probe will focus on the procurement for and acquisition of a commercial property in East London by the Sace and any related unauthorised, irregular or fruitless and wasteful expenditure incurred by the Sace or the state.
At Sassa, the SIU will seek to establish whether there was “any related unauthorised, irregular or fruitless and wasteful expenditure incurred by Sassa or the state or any resulting loss or damages suffered by the Sassa” in the awarding of at least five tenders.
Kganyago said the SIU will also cast a keen eye on the Newcastle municipality with investigations into, among others, procurement processes, the awarding of tenders and specific probes into at least four contracts.
“Furthermore, the SIU will investigate maladministration in the affairs of the municipality in relation to contracts awarded to [government employees], payments made to fictitious employees, fruitless and wasteful expenditure incurred as a result of late payments made to Eskom, fruitless and wasteful expenditure incurred as a result of late value-added tax and pay-as-you-earn payments to the South African Revenue Service, salary payments made to former employees after they had left the employ of the municipality, including the causes of such maladministration,” he added.
The investigation will also probe alleged “serious, improper or unlawful conduct by officials or employees” at the municipality.
Kganyago said the SIU will have to recover any financial losses suffered by the state as a result of negligence or corruption should any of these state entities be found guilty of maladministration.
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