The Special Investigating Unit is going after suppliers who milked an Eastern Cape district municipality for the second time. Picture: Timothy Bernard / Independent Newspapers
THE Special Investigating Unit (SIU) is probing a struggling Eastern Cape municipality, the Alfred Nzo District, again for corruption in its water projects despite previously making damning findings in similar initiatives.
The latest investigation follows serious maladministration uncovered by Auditor-General Tsakani Maluleke in water services infrastructure, regional bulk infrastructure, and municipal infrastructure grants procurement, implementation, and payments.
Seven key projects were identified, tested, and reported on, over the project life cycle and it was established that they were not properly administered as required by the Municipal Finance Management Act and the municipal supply chain management regulations.
Last year, the SIU was tasked to investigate the implementation of water services infrastructure grant projects in Ntabankulu, implementation of pump stations and a reservoir, construction of a waste water treatment works and outfall sewer pipeline, construction of water treatment works and other water schemes as well as any related unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality.
In addition, the probe will focus on any irregular, improper or unlawful conduct by employees or officials of the municipality; or any other person or entity and zoom in on the period between January 2015 and November last year.
This week, the SIU stated that the investigation is in its initial stage and is expected to be finalised by/or before the end of November this year.
The corruption-busting unit reported that it met Alfred Nzo mayor Vukile Mhlelembana in December last year and sent a request for documentation the same month.
The current investigation is estimated to take up to a year to complete at the estimated cost of just over R14.1 million.
In the SIU probe authorised in 2017, it was found that contracts worth millions of rand were irregularly awarded.
They include the delivery of 100 Jojo tanks but the supplier, Intlangula, could only deliver and install 25, which had to be installed by the community, but the SIU exonerated the company and pointed fingers at municipal officials’ negligence.
”No evidence pointing to corruption and fraud was found on the part of Intlangula,” the SIU stated.
Another company, Lihle Nathi, was awarded two contracts worth R119.6m when the feasibility study estimated the projects to cost around R71m.
The SIU concluded that the evaluation and adjudication processes were irregular and did not pass the test for compliance with the Constitution, and that Lihle Nathi submitted a fraudulent tax clearance certificate as well as Construction Industry Development Board documentation with inaccurate information.
In its investigation, the SIU also found that the appointment of Sebata Municipal Solutions to assist the municipality that was experiencing difficulties with their revenue and billing management was irregular and in contravention of municipal policies and the MFMA.
”Sebata was paid in total of R83.4m. The SIU found evidence of corruption where some municipal officials received kickbacks from Sebata through a third party,” the unit revealed.
The entity continued: “It is important to note that at the time of reporting, the SIU was informed that although the project was reported as complete, water had not yet reached the community and further that this was not the fault of Lihle Nathi but other factors not related to the work of Lihle Nathi.”
The SIU was informed that the municipality faced other technical issues in pumping water from boreholes to tanks/reservoirs and that the pipes were bursting every time water was pumped in some parts of the municipality.
”The district municipality continued to have water challenges and further procurement processes were initiated which are now the subject of investigation,” the unit added.
loyiso.sidimba@inl.co.za