President Cyril Ramaphosa. (Supplied/GCIS)
- President Cyril Ramaphosa has authorised the Special Investigating Unit to probe yet more alleged maladministration at the Mthatha-based OR Tambo District Municipality.
- The SIU is already leading another investigation in the municipality.
- The new cases include bulk infrastructure projects and allegations from 2018.
President Cyril Ramaphosa has authorised the Special Investigating Unit (SIU) to probe alleged corruption at the OR Tambo District Municipality in connection with the construction of the Signal Hill Reservoir and the appointment of the Amatola Water Board in 2019.
The SIU will also probe an allegedly irregular payment to the board, the construction of the Mqanduli Bulk Water Scheme and the appointment of, and allegedly irregular payment to, Gcinasonke Engineers, among a myriad other allegations relating to bulk infrastructure projects undertaken by the Eastern Cape municipality.
In late 2022, the SIU began to probe strategic, technical and operational Support services tender corruption within the same municipality.
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The initial investigation came after Ramaphosa signed Proclamation R80 of 2022, authorising SIU investigators to probe allegations of corruption and maladministration in the municipality, and to recover any money lost through illegal means.
This week, Ramaphosa gave SIU investigators the authority to investigate five contracts relating to the construction of water supply infrastrcuture.
The latest investigation will include allegations relating to:
- the construction of the Signal Hill Reservoir and the appointment of Amatola Water Board in 2019 and an alleged irregular payment made to the water board;
- the construction of the Mqanduli Bulk Water Scheme, the appointment of Gcinasonke Engineers (Gcinasonke) and an allegedly irregular payment made to Gcinasonke in 2019;
- the construction of the Mqanduli Bulk Water Scheme and the appointment of Khwalo’s Construction (Khwalo) and an alleged irregular payment made to Khwalo in 2019;
- the supply and installation of a pump at Mhlontlo Cluster 1 and the appointment of Valotone 94 CC and Phoenix Tanks (Pty) Ltd in 2019, and an allegedly irregular payment made to the service provider in 2019; and
- the electrification of the Mthatha Dam and Highbury, and the construction of the Thornbill Clear Water Pump Station, and the alleged irregularities regarding payment to Amatola for these projects between 2018 and 2019, by the municipality and payments made in a manner that was allegedly unfair, competitive, transparent, equitable or cost-effective.
The probe will also zero in on any irregular, improper or unlawful conduct by municipal officials or entities involved in the contracts.
According to a 2020 forensic report, tabled before the OR Tambo District Municipality council, which showed that not only did the municipality pay Amatola Water an “unexplained advance of R28 million and an advance of R12.6 million for materials that weren’t delivered, but it also doled out millions more for allegedly questionable invoices.”
While the report does not explain when R12.6 million was paid, it revealed that the payment related to the Signal Hill reservoir construction.
OR Tambo municipality spokesperson Zimkhitha Macingwane was approached to confirm the investigation. Her response will be added when received.
SIU spokesperson Kaizer Kganyago said the unit will look into any unauthorised, irregular or wasteful expenditure incurred by the government.
The probe will cover allegations from July 2018 to August 2024.
