SIU launches probe into tender irregularities at Makana Local Municipality

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Photo: Supplied

By Charles Molele

The Special Investigating Unit has been authorized to investigate several allegations of corruption and maladministration related to seven contracts in Makana Local Municipality, Makhanda, in the Eastern Cape.

This comes after President Cyril Ramaphosa gave the SIU the green light to probe several contracts and procurement practices in the local municipality flagged by the Auditor General of South Africa.

SIU spokesperson Kaizer Kganyago said on Monday night that, in addition to probing maladministration, corruption, and fraud, the SIU aims to identify systemic failures and recommend measures to prevent future losses in the municipality. 

The investigation covers activities that took place between 1 January 2019 and 18 October 2024, as well as any related incidents before or after these dates that are relevant to the case.

“The investigation stems from concerns highlighted in a report dated 30 June 2019, which revealed that the Municipality had awarded contracts valued over R200,000 without following competitive bidding processes,” said Kganyago.

The investigation will focus on several key projects, including the Makana Bulk Sewer Upgrade Phase 1, the electrification project of the greater Makana area, and the reappointment of MBB Consulting for water conservation initiatives, among others.

The flagged projects include:

  • * Professional engineering services for groundwater development.
  • * Implementing agents for water conservation and demand management.
  • * Re-appointment of MBB Consulting for water conservation and demand management.
  • * Electrification of the Greater Makana and surrounding areas, specifically the 11KV Line Project.
  • * Hosting of municipal emails and provision of internet services.
  • * Operation and management of the Makana landfill site for six months.

The SIU’s investigation will scrutinize payments made in ways that violated the principles of fairness, competitiveness, transparency, equity, and cost-effectiveness.

This also includes any breaches of the applicable legislation or Treasury guidelines.

According to the Special Investigating Units and Special Tribunals Act 74 of 1996, any evidence of criminal conduct discovered during the investigation will be handed over to the National Prosecuting Authority for prosecution.

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