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President Cyril Ramaphosa has signed a proclamation authorising the Special Investigation Unit to probe allegations of serious maladministration in a Nelson Mandela Bay Metropolitan Municipality street and flood lights contract
Spokesperson, Kaizer Kganyago, said on Monday that Proclamation 170 of 2024 also authorises the SIU to recover any financial loss suffered by the State or the Municipality.
He said the investigation will determine whether the contract for the supply, delivery, and “off-loading” of LED street lighting and flood-lighting luminaries and payments made in this regard were “fair, competitive, transparent, equitable or cost-effective.”
“The SIU will also investigate any unauthorised, irregular, fruitless, and wasteful expenditure incurred by NMBMM or the State.
“The scope of the investigation also covers any unlawful or improper conduct by officials or employees of NMBMM, the applicable suppliers or service providers or any other person or entity,” Kganyago said.
The Proclamation further covers allegations of unlawful and improper conduct that took place between 1 November 2020 and 12 July 2024, while also identifying system failures and making systematic recommendations to improve measures to prevent future losses.
Any evidence of criminal conduct will be referred to the National Prosecuting Authority for further action.
Meanwhile, the ACDP welcomed the news, saying the SIU's investigation follows alarming findings from internal audits and forensic investigations that revealed significant discrepancies and breaches of tender processes within the Electricity and Energy Department.
These included the incorrect preference point system used to adjudicate tenders, with the 80/20 point allocation applied instead of the appropriate 90/10 allocation for contracts exceeding R50 million.
“This led to unauthorized expenditures surpassing R50 million within the first 11 months of the contract,” said ACDP whip on the Electricity and Energy standing committee, councillor, Lance Grootboom.
He said the internal probe also found non-compliance with procurement policies, unauthorized contract deviations, and lack of accountability.
“We urge the SIU to conduct a thorough investigation and hold all implicated individuals and entities accountable,” Grootboom said.
