Briefing parliament’s standing committee on public accounts, SIU acting head Leonard Lekgetho revealed contracts worth R1.1bn have been referred to municipalities for civil proceedings since 2012. During the same period, contracts valued at R545m were declared invalid and set aside.

The SIU has so far recovered only R1.1m, while R58.9m in potential cash or assets remains under investigation. In addition, 362 cases have been referred to the NPA for criminal investigation, alongside 222 disciplinary referrals and 629 administrative actions.

Investigations in the Free State and North West have revealed recurring patterns of governance failures, Lekgetho said, including irregular procurement processes, corruption, missing tender documents, and contractors failing to deliver on projects.

“In the Free State, we … have one active proclamation and one investigation that has already been completed,” said Lekgetho. “There are, however, two municipalities in the Free State where we do not yet have proclamations, and these will require further attention.

“We have submitted a motivation to the department of justice for a proclamation in Mangaung Metropolitan Municipality, while Mafube municipality also remains without a proclamation.

“In … North West, one investigation is currently ongoing, while four others have already been completed across several municipalities.”

The ongoing investigation in North West is in the Mahikeng municipality, with completed matters in JB Marks (Potchefstroom and Stilfontein), City of Matlosana (Klerksdorp, Orkney, and Stilfontein), and Ditsobotla (Lichtenburg), he said.

The unit has active investigations at Masilonyana (Winburg, Brandfort, Soutpan and Verkeerdevlei), with a completed probe at Maluti-A-Phofung (Harrismith and Phuthaditjhaba). Findings at Masilonyana include irregular appointments of service providers for the refurbishment of the Brandfort water treatment works and upgrades to the Brandfort sports centre.

It was revealed these cases have already resulted in three referrals for criminal investigation and three for disciplinary action.

North West municipalities have faced similarly serious allegations. SIU advocate Victoria Mdlalose said a R25m contract for generators was allegedly awarded over the phone by the Ditsobotla municipality, with no formal agreement in place at the time.

The situation, which unfolded during the height of the Covid-19 pandemic in March 2020, saw prices for generators inflated from R250,000 to R500,000.

An ongoing investigation at the Mahikeng municipality found officials bypassed legal requirements by taking on contracts from another municipality without proper approval or advertising. In one case, the bid evaluation committee failed to meet altogether.

OFM News/Zenande Mpame sm

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