Spokesperson for the unit, Kaizer Kganyago, says that the Atamaleng Magistrate’s Court granted the SIU a warrant to raid the municipal offices.

This, following the signing of Proclamation R23 of 2020 by President Cyril Ramaphosa, authorising the SIU to investigate allegations of corruption and maladministration in the affairs of state institutions in relation to the procurement of Covid-19 Personal Protective Equipment (PPE).

He says it is alleged that petrol cards are being abused by officials.

He adds that a whistle-blower informed the SIU that one card would incur up to R5 000 for a local trip that’s less than 60 kilometres.

He says “in this municipality there are a lot of allegations where a whistle blower informed us about the petrol card problems that were incurred as well as the expenditure of PPE’s - which is at the moment around R25 million. The figure is likely to rise after the raid because we’ll be able to find documents that will corroborate what we are looking for.”

Kganyago says that quotations received from the service providers were exorbitantly higher than the prescribed price limits as per Treasury Instruction, among others.

“The SIU received information from a whistle-blower that a senior official at the Municipality instructed officials to appoint service providers who are allegedly known to the senior official, for the provision of PPE and material to be used for disinfection of buildings. The appointments were done without following supply chain policies and emergency procurement directives issued by the National Treasury in terms of section 168 of the Municipal Finance Management Act No.56 of 2003,” adds Kganyago.

He goes to say that the municipality had been placed under administration in terms of Section 139(1)b of the Constitution earlier this year. 

Allegedly, rushed payments were made by the municipality to service providers who, among others, were appointed to supply and deliver PPE once an announcement of the investigation was made, says Kganyago.

This without the municipality ensuring that the services had been rendered in accordance to specification.

Kganyago further adds that, “On 14 January 2021, the Municipal Manager went on to organise a Special Council meeting where a resolution was taken to remove the mayor and speaker. Senior managers were appointed to act in certain critical positions, one being that of a Chief Financial Officer, even though Council’s powers had been revoked as the Municipality was now under administration. A court declared the Special Council’s meeting unlawful and ordered that the Administrator continue performing her duties assigned to her in terms of section 139(1)(b) of the Constitution. Following the court judgment, the Administrator received the SIU report recommending that disciplinary action be taken against the Municipal Manager and other officials for financial misconduct relating to the irregular procurement of PPE and the appointment of service providers to disinfect the municipal premises without following a competitive bidding process,”

The Municipal Manager was placed under precautionary suspension by the administrator while they await institution of disciplinary action against him, adds Kganyago. He says this was contested by the Municipal Manager in Labour Court but was deemed unsuccessful.

The SIU has yet to retrieve any information and documentation relating to the procurement undertaken throughout the national state of disaster as this information is in the municipality’s possession.

OFM News/Lee Simmons