This covers the period from March 2020 to November last year and includes the allegedly inflated price paid for ageneratorfor the Vants Drift Water Treatment Plant in Nquthu. The municipal manager was suspended last year due to corruption allegations relating to a payment of R5.7m forwater projectsthat were never undertaken. Co-operative governance and traditional affairs ministerVelenkosini Hlabisaexpressed concern in October over R1.4bn in irregular expenditure incurred by the municipality in the previous financial year.
This came in the wake of a report by theauditor-general’s officecriticising management of municipal funds in the province. SIU spokesperson Kaizer Kganyago said: “The investigation will determine whether contracts and related payments were conducted in a manner that was not fair, competitive, transparent, equitable or cost-effective. “The SIU will also probe any potential violations of applicable legislation, National Treasury guidelines, and the municipality’s own policies and procedures.” Any evidence of criminal conduct uncovered during its investigation will be referred to the National Prosecuting Authority for further action. The SIU is also authorised to initiate civil proceedings in the high court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the state, including funds paid for services not rendered.
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