The Special Investigating Unit (SIU) has recovered nearly R600m in cash and assets that may have been lost to corruption and financial mismanagement since their probe into malfeasance in the water sector.
The SIU has also been successful in setting aside contracts worth more than R1.1bn between 2012 and this year after they were deemed invalid and unlawful.
This was presented to parliament by acting SIU chief national investigations officer Simangele Tshabalala during a briefing to the portfolio committee on water and sanitation on Tuesday.
Tshabalala also reported that the SIU, through their investigations, have prevented a potential loss of more than R700m to corruption, over and above R600m in recovered assets and the contracts that had been set aside or declared invalid.
A further 350 cases have been referred to the National Prosecuting Authority for criminal prosecution, while 130 more have been referred to the department of water and sanitation for disciplinary action to be instituted against officials and board executives in the sector.
Tshabalala and her team reported to parliament that they had thus far completed nine of the 16 proclamations that had been assigned to the SIU since 2008.
Those completed included allegations of corruption and looting at the uMngeni-uThukela Water board in KwaZulu-Natal.
But the SIU told MPs probes were still active at Limpopo’s Lepelle Northern Water board and the controversial Rooiwal Wastewater Works project in the City of Tshwane.
The Rooiwal Wastewater Works project, awarded to a company owned by businessman Edwin Sodi, has deprived the Hammanskraal area of clean water despite the City of Tshwane spending up to R4bn on it since 2022.
And there would be the overpricing of goods and services. Service providers would not perform work, yet officials would certify and commission that work was done and end up being paid for that. We also identified overpayment and incorrect VAT charges. Some contracts just ballooned from their initial budgets.
— Simangele Tshabalala, SIU's acting chief national investigations officer
Tshabalala told MPs they were still embroiled in the recovery of R107m that had been irregularly paid to service providers by the Lepelle Northern Water board.
The SIU senior manager painted a grim picture of financial mismanagement and wrongdoing in the water sector.
“We have identified the common patterns where you find procurement irregularities [and] irregular appointments of service providers. Supply chain management processes were not followed. National Treasury regulations are not followed in some instances,” said Tshabalala.
“And there would be the overpricing of goods and services. Service providers would not perform work, yet officials would certify and commission that work was done and end up being paid for that. We also identified overpayment and incorrect VAT charges. Some contracts just ballooned from their initial budgets.”
ActionSA MP Malebo Kobe asked if Sodi’s company, Blackhead Consulting, had been backlisted from doing work with the state.
Zodwa Xesibe, the acting SIU COO, said it was up to the department of water and sanitation, along with the City of Tshwane, to refer Blackhead Consulting to the National Treasury for blacklisting.
“I’m aware that the matter has been referred to the National Treasury,” said Xesibe.
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