President Cyril Ramaphosa. (Courtesy of GCIS)
- President Cyril Ramaphosa has given the Special Investigative Unit powers to investigate further allegations of wrongdoing in the Mthatha-based OR Tambo District Municipality.
- The SIU is already leading new investigations in the city.
- The new lawsuits involve large infrastructure projects and allegations from 2018.
President Cyril Ramaphosa has authorised a Special Investigating Unit (SIU) to investigate allegations of corruption in the OR Tambo District Municipality relating to the construction of the Signal Hill reservoir and the appointment of the 2019 Amathla Water Board.
The SIU will also be investigating alleged improper payments to the board, the construction of the Mkanduli Bulk Water Scheme and the appointment of Gusinasonke Engineers and alleged improper payments to the company, among a number of other allegations relating to large infrastructure projects undertaken by the Eastern Cape municipality.
Later in 2022, the SIU began investigating corruption in tenders for strategic, technical and operational support services within the same municipality.
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The initial investigation came after President Ramaphosa signed Proclamation R80 of 2022, empowering SIU investigators to investigate allegations of corruption and maladministration in municipalities and recover monies lost through unlawful means.
This week, President Ramaphosa authorised SIU investigators to look into five contracts relating to the construction of water infrastructure.
The latest investigation includes allegations regarding:
- the construction of Signal Hill Reservoir and the appointment of the Amatra Water Board in 2019, and alleged improper payments to the water board.
- the construction of the Mkanduri Bulk Water Scheme, the appointment of Gcinasonke Engineer (Gcinasonke) and allegedly corrupt payments made to Gcinasonke in 2019.
- the construction of the Mkanduri Bulk Water Scheme and the appointment of Kwalo Constructions (Kwalo) and allegedly corrupt payments made to Kwalo in 2019.
- the supply and installation of pumps to Mhlontlo Cluster 1 in 2019, the appointment of Valotone 94 CC and Phoenix Tanks (Pty) Ltd and allegedly corrupt payments made to service providers in 2019.
- Alleged irregularities by the municipality in relation to the electrification of Mutata Dam and Highbury, the construction of Thornville fresh water pumping station and payments to Amatra in relation to these projects between 2018 and 2019, and allegations that the payments were made in a manner that was not unfair, competitive, transparent, fair or cost-effective.
The investigation will also focus on any fraudulent, improper or illegal conduct by city officials or entities involved in the contract.
A 2020 forensic report presented to the OR Tambo District Municipal Council revealed that the municipality had paid Amathla Water “unexplained advances of R28 million and an advance of R12.6 million for materials that were never delivered”, as well as “paid millions more rands on questionable invoices”.
The report does not explain when the R12.6 million was paid, but it makes clear the payment was in relation to the construction of the Signal Hill reservoir.
We have asked OR Tambo Municipality spokesperson Zimkita Machingwane to confirm the investigation and a response will be added once it is received.
SIU spokesman Kaizer Kganyago said the unit would investigate fraud, irregularities and wasteful spending by government.
The investigation will cover allegations between July 2018 and August 2024.