SIU Launches Probe into Maladministration at Four Municipalities

Investigations will target the Tshwane Metro Municipality, Mahikeng Local Municipality, Alfred Nzo District Municipality, and an amended probe into the Chris Hani District Municipality.

The Special Investigating Unit (SIU) has been authorized to investigate alleged maladministration in the procurement processes and financial management of several South African municipalities, following proclamations signed by President Cyril Ramaphosa. Investigations will target the Tshwane Metro Municipality, Mahikeng Local Municipality, Alfred Nzo District Municipality, and an amended probe into the Chris Hani District Municipality.

Tshwane Metro Municipality: CCTV Procurement Under Scrutiny

The SIU’s investigation into Tshwane Metro will focus on the procurement process for the upgrade and extension of the city’s closed-circuit television (CCTV) surveillance system. The investigation will examine whether the contracting process was fair, competitive, and transparent, in compliance with National Treasury guidelines and municipal policies. It will also probe whether there was any irregular or wasteful expenditure and whether any officials, contractors, or service providers engaged in unlawful or improper conduct during the procurement.

“The investigation will determine whether the payments made for the project were authorized and if the procurement was cost-effective,” explained SIU spokesperson Kaizer Kganyago.

Mahikeng Municipality: Lease Agreements and Tender Irregularities

In Mahikeng Local Municipality, the SIU will investigate two specific tenders related to lease agreements: SCM/MLM17(A)/12/2015 and SCM/MLM17(B)/12/2015. The probe will assess whether the payments and processes involved in these lease agreements were in line with legal and financial standards, and whether they were fair, competitive, and cost-effective. The SIU will also look into allegations of fraudulent conduct, unauthorised or irregular interventions by municipal officials, and whether there was any wasteful expenditure.

Alfred Nzo District Municipality: Water Supply Projects Investigated

The Alfred Nzo District Municipality will face scrutiny over seven contracts related to water supply infrastructure projects, including schemes in Ntabankulu, Mount Ayliff, Mbizana, and Matatiele. The SIU’s investigation will focus on whether any irregular or unlawful activities took place during the procurement process and if there was any improper conduct by municipal officials, contractors, or service providers. The investigation will also examine whether any wasteful or unauthorised expenditure was incurred during these projects, which were funded through water services infrastructure grants.

Chris Hani District Municipality: Extension of Existing Probe

The Chris Hani District Municipality investigation, which focuses on the appointment of the Chris Hani Co-operative Development Centre NPC for converting community service providers into functional cooperatives, has been extended. The probe period now covers from 1 December 2011 to 8 November 2024. Additionally, the investigation will include the procurement process for a water treatment project at Tsomo. This extension follows the SIU’s findings that additional areas of investigation were necessary.

Strengthening Accountability in Local Government

The investigations reflect ongoing efforts by the SIU to enhance transparency and accountability within local government procurement processes, especially regarding public infrastructure and service contracts. By examining the financial and contractual dealings of these municipalities, the SIU aims to uncover any instances of fraud, corruption, or wasteful expenditure, ensuring that public funds are used appropriately and effectively.

In his statement, Kganyago emphasized that the SIU’s objective is to hold accountable those responsible for any unlawful conduct or maladministration, ensuring that the funds entrusted to municipalities are managed with the highest standards of governance and integrity.