Uncooperative GovernanceNelson Mandela Bay streetlight probe uncovers fraud, corruption and organised crime, says MinisterByEstelle Ellis

Preliminary findings by the Special Investigating Unit, probing the controversial 2020 streetlight contracts in Nelson Mandela Bay, have uncovered evidence that several officials from the municipality failed to adhere to supply chain management regulations, finance policies and the Municipal Finance Management Act. An investigation into controversial 2020 streetlight contracts issued by the Nelson Mandela Bay metro has uncovered cases of fraud, the Contravention of the Prevention and Combating of Corrupt Activities Act and contravention of the Prevention of Organised Crime Act, Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa told Parliament in a written answer to a question. He said the Special Investigating Unit (SIU) provided his office with the information.

“The investigation focuses on whether the process and payments were unfair, non-competitive, non-transparent, or contrary to legislation and Treasury guidelines,” Hlabisa said. Hlabisa continued in his answer that according to the preliminary SIU report, three companies, with their directors, and more than 10 officials were involved. “The names of the companies and officials involved cannot be divulged at present as the investigation team is busy processing the right of replies for disciplinary referrals and preparing referrals to the National Prosecuting Authority.

The presidential report has not been issued yet. “The SIU has established that the procurement undertaken by the municipality was irregular and must be set aside. A memorandum has been prepared and forwarded to the [relevant unit] for consideration.

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Several officials from the municipality failed to adhere to the SCM and finance policies as well as the Municipal Finance Management Act,” Hlabisa continued. “The SIU is busy preparing systemic recommendations on the processes and systems in the municipality and referring evidence to the Civil Litigation Unit for civil litigation to set aside the contracts at the Special Tribunal,” he added. Hlabisa said the metro had cooperated with the SIU by providing the documents and information requested in support of the investigation.

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