Cape Town - The Special Investigating Unit (SIU) has made fresh requests to President Cyril Ramaphosa to authorise proclamations in order to investigate new allegations made against some water boards and the Department of Water and Sanitation.
This emerged on Wednesday when the SIU briefed the standing committee on public accounts (Scopa) on the investigations authorised in eight proclamations.
Briefing the committee, SIU chief investigator Leonard Lekgetho said they had received new allegations and motivations were submitted to Ramaphosa.
Lekgetho said they were looking at drought relief technology services and investigation services from service providers in a manner that was contrary to the Constitution and in the Lepelle Northern Water Board’s procurement prescripts.
“We also look at one allegation that one of the service providers was appointed on an expedited basis without just cause and the procurement was not budgeted for,” he said.
Lekgetho also said the allegations in Amatola Water Board (AWB) were related to procurement of drought relief technology services.
“We are also looking at an allegation that of the R230 million allocated to the AWB for drought relief solutions, 60% was earmarked for the drought relief technology service provider.
“The procurement of both services was not budgeted for.”
He added that the SIU was aware of various allegations and concerns voiced in the media and elsewhere regarding The War on Leaks Program, Drop a Block and the Sedibeng Water Board.
Lekgetho said the corruption busting body had requested and reviewed reports from the auditor-general, OUTA, Parliament and the Department of Water and Sanitation in order to thoroughly assess the matter and the allegations around the billions of rand of irregular and unauthorised expenditure.
“The SIU has assessed the allegations and has applied to the president for a proclamation to investigate these matters,” he said.
Gina Pretorius, one of the lead investigators, said from the eight proclamations, there were five civil matters currently before court.
Pretorius said the SIU had made 52 Asset Forfeiture Unit referrals, 110 National Prosecuting Authority referrals, 55 disciplinary referrals, 45 blacklisting of companies, 20 referrals to SARS and three referrals to the Construction Industry Development Board.
SIU head Andy Mothibi said most of the investigations were complete and the department was dealing with the disciplinary matters.
However, Mothibi said there were worrying observations arising from their investigations.
“There is just an indication of widespread maladministration, wanton disregard of procurement processes, unauthorised processes, non-compliance with Public Finance Management Act, abuse of emergency provision and, of importance, poor project management.”
Mothibi also said years after they completed the investigations, some of the projects were not completed such as the Vuwani pipeline.
“There is really no effort made to make sure the department is charged appropriate prices,” he said, before making an example for value for money in Lepelle Northern Water where costs have increased to 116%.
“This shows that there is a critical and serious problem here. How do you pay such huge amounts when projects are not completed? This is poor project management we refer to,” Mothibi said.
He also said departments should not be quick to accept settlements from companies that were implicated in wrong-doing without first determining their losses.
He made an example of the service provider EOH that offered to settle with the department at R52m.
“We calculated the loss to R236m. That settlement is totally unacceptable. It is undercutting what they are supposed to pay.”
Scopa chairperson Mkhuleko Hlengwa said the extent of corruption required a particular effort and focus of the committee.
“The slow pace of consequence management is worrisome. We speak about billions of rand.
“Seemingly, successful prosecutions, recovering and bringing to legal conclusion is not happening at the desired pace. This created conducive environment for corruption to continue,” Hlengwa said.
Cape Times