R646 Million water contract declared invalid in major blow to state procurement

By Thapelo Molefe

A R646 million contract intended to urgently upgrade KwaZulu-Natal’s Thukela–Goedertrouw water transfer scheme has been declared constitutionally invalid and set aside by the Special Tribunal, after it was found to have been awarded in violation of public procurement laws.

The ruling by the Special Tribunal comes after the Special Investigating Unit (SIU) launched an investigation into the Department of Water and Sanitation contract, which was initially budgeted at R407 million but ballooned to R646.5 million, generating irregular expenditure and substantial losses to the State.

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The Tribunal found that AECOM SA (Pty) Ltd, the company awarded the contract, was irregularly included in the closed tender process despite not being formally invited. The bid adjudication committee had recommended against AECOM’s appointment, but the Acting Director-General, Sfiso Mkhize, proceeded with the award regardless.

“This judgment reinforces that government