President Cyril Ramaphosa has signed proclamation 208 and 209 of 2024, authorizing the Special Investigating Unit to investigate allegations of maladministration within the African Exploration Mining and Finance Corporation and the Dihlabeng Local Municipality in the Free State.
Proclamation 208 authorizes the SIU to investigate serious maladministration in AEMFC’s handling of six tenders.
The tenders include:
• Coal insourcing contracts from 2017 and 2018
• Asset-based financier services (Bid AE/001/2018)
• Clean water diversion and stream crossing construction at Vlakfontein Mine (Bid AE/VLAK030/2018)
• Diesel supply (Bid AE/VLAK003/2017)
• Review of mining contractor tenders from 2016
• Proclamation 209: Investigation into Dihlabeng Municipality Contract
Proclamation 209, on the other hand, directs the SIU to investigate potential maladministration within Dihlabeng Municipality regarding the procurement of two 40m high-mast lights.
The investigation will assess if the procurement process met standards of fairness, transparency, and cost-effectiveness and if it complied with National and Provincial Treasury guidelines.
The SIU will examine whether payments for these contracts adhered to treasury guidelines and whether they led to irregular, fruitless, or wasteful expenditures.
In addition, the SIU is also expected to seek evidence of any unlawful conduct by AEMFC or Dihlabeng Municipality officials or contractors, focusing on potential personal enrichment.
The investigation cover actions from January 1, 2016, to November 1, 2024, with scope to include related activities predating January 2016 if relevant.
Under the Special Investigating Units and Special Tribunals Act (Act 74 of 1996), the SIU may refer any criminal evidence uncovered to the National Prosecuting Authority and pursue civil actions in the High Court or a Special Tribunal to address any identified corruption, fraud, or maladministration.
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