The Special Investigating Unit (SIU) has exposed corruption within the Department of Water and Sanitation.
According to SIU head Andy Mothibi, the unit has been looking into 14 cases, nine of which have been finished and five of which are still pending.
Speaking to the portfolio committee on water and sanitation, Mothibi stated that the SIU had recovered R569-million in cash or assets and cancelled illegal contracts worth R1.1-billion.
It is anticipated that another R264-million will be recovered in the future.
The SIU investigated corruption at the City of Tshwane’s Rooiwal Wastewater Treatment Works.
The project was connected to Blackhead Consulting, the company owned by controversial businessman Edwin Sodi.
Singled out for lifestyle audits
A total of 65 individuals and entities have been flagged for thorough background investigations. These consist of private individuals, businesses, and government employees.
Mothibi claims that nine officials have already been singled out for additional lifestyle audits because, based on their assets, it seemed like they were living beyond their means.
A total of 27 officials were flagged for more thorough lifestyle reviews because of their dubious financial dealings and unexplained assets.
A significant investigation into the Grootfontein and Grootdraai pump stations revealed potential fraudulent claims involving repairs at pump five in Grootfontein, which could result in a recovery of R181 366.
Furthermore, R1 160.160 was paid to a service provider for unfinished work related to the design, supply, installation, and commissioning of a packaged water treatment plant at Grootdraai pump station.
Legal action has now been taken in this case with the intention of terminating the agreement and recouping all money.
Payment system likely manipulated
Additionally, the SIU looked into strange behaviour by both department officials and outside parties.
The department’s payment system was found to have been manipulated, possibly by creating purchase orders after contracts had ended.
“The SIU found possible manipulation of the payment system that might have resulted in the creation of purchase orders after the expiry of the contract,” said Mothibi.
“The department incurred potential irregular expenditure by effecting two sundry payments of R12 131.016 and R3 853.019, respectively.
“The officials certified and commissioned work that was not performed, resulting in possible irregular payments.
“The investigation is complete, and the team is finalising the report. The matter has been referred to litigation.”
An additional investigation was conducted into the Lepelle Northern Water Board (LNW).
The SIU investigated whether appropriate procurement practices were followed prior to selecting a service provider for a civil engineering management contract.
The seven-year contract was signed on April 8, 2020.
“The appointment of the service provider was found to be irregular, the contract extensions were found to be irregular, and during the SIU investigation, LNW terminated the contract with the service provider on 30 July 2014 by afflux of time, according to the termination letter.
“The letter further states that the purported extensions made after 14 November 2020 are invalid, unlawful, and unenforceable primarily because the contract had lapsed,” said Mothibi.
Disciplinary hearings conducted
Eight disciplinary hearings were consequently held in October 2024; however, three former LNW employees could not be disciplined because they had already left the company.
The selection of a service provider to test and pilot sand and water extraction technology was the second area of concern.
The SIU deemed it to be irregular because the appointment was made using a single-source procurement and the services were excessively expensive.
The investigation may result in two disciplinary referrals and one referral to the civil litigation unit (CLU), according to Mothibi, even though no results have been announced yet.
In the third focus area, a service provider was hired to carry out a financial investigation at LNW. This appointment took place following LNW’s decision to forego using the same supplier for the water extraction technology project.
“The appointment of the service provider in terms of Section 45 of the Water Services Act was found to be irregular.
“No actual outcomes have been achieved in respect of the third focus area. Potential outcomes for focus area three are one CLU referral.”
The fourth investigation relates to the refurbishment and construction of boreholes in the Moutse area. This case is still ongoing.
On January 14, the SIU appointed a civil engineering expert who is now working on an interim report. It is anticipated that the final report and a presidential report will be finished by May 31.
