Cape Town — President Cyril Ramaphosa has given authorisation to the Special Investigating Unit (SIU) to investigate any allegations of maladministration within Transnet, and to recover any financial losses.
Ramaphosa signed Proclamation 174 of 2024 which gives the SIU power to probe procurement processes and contractual agreements related to the leasing of properties belonging to Transnet or the State. The investigation will focus on leases that were possibly facilitated through unlawful or improper conduct by Transnet employees or officials, or any other involved parties, it said in a statement.
“The investigation will specifically examine whether Transnet officials or agents acted corruptly or unduly to benefit themselves or others, leading to unauthorised, irregular, or fruitless and wasteful expenditure, or financial losses for Transnet,” SIU spokesperson, Kaizer Kganyago said.
There are five long-term leases set to be investigated by the SIU including the construction of bulk fuel storage facilities in Bayhead, Durban. the property of Erf 140 in Rossburgh, the property known as Film Production Studios in the Calrton Skyrink Building in the Carlton Centre in Marshalltown, and the properties at Erf 1763 and Erf 1764 Juksvlei View in Midrand.
The final lease is the premises of the old Durban International Airport, including the runway, tarmac, apron, taxiways, old terminal building, ATNS building, security building, Maritime School, and SAA Site.
SIU authorised to investigate allegations of serious maladministration in five Transnet lease agreements pic.twitter.com/71VpbIC3oC
— Special Investigating Unit (SIU) (@RSASIU) August 23, 2024
The SIU’s mandate includes an investigation of the procurement of goods, works and services such as leased accommodation, tenant installations and fit-out allowances made by Transnet, linked better to the above-mentioned contracts.
“Additionally, the SIU will investigate any unauthorised, irregular, or fruitless and wasteful expenditure incurred by Transnet or the State. The investigation will encompass any unlawful or improper conduct by Transnet officials, employees, suppliers, service providers, or any other involved parties,” Kganyago added.
The proclamation covers all allegations of unlawful and improper conduct that occurred between 1 January 2024 and 23 August 2024, as well as any related activities before 1 January 2024.
The Proclamation also covers allegations of unlawful and improper conduct that occurred between 1 January 2014 and 23 August 2024, as well as any related activities before 1 January 2014 and after the date of the Proclamation
Those that are pertinent to the matters under investigation or involve the same persons, entities, or contracts will also be investigated. The SIU will also investigate maladministration, corruption, and fraud, as well as identify systemic failures and recommend measures to prevent future incidents.
“The SIU is also authorised under the SIU Act to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration,” Kganyago concluded.
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According to IOL, Ramaphosa also authorised the SIU to investigate maladministration in the OR Tambo District Municipality in the Eastern Cape to discover losses suffered by the municipality following allegations of an unlawful and improper contract between 1 January 2018 and 16 August 2024.
SIU spokesperson, Kaizer Kganyago, said the SIU has also been authorised to recover any financial losses suffered by the state or the municipality about these reported irregularities and maladministration.
The investigation also covers the construction of the Manduli Bulk Water Scheme the appointment of Ginasonke Engineers and an alleged irregular payment made to Ginasonke in 2019.
The same goes for the electrification of the Mthatha Dam and Highbury, the construction of the Thornbill Clear Water Pump Station, and the alleged irregularities regarding payment of Amatola for these projects in 2018 and 2019, among many others.
“Furthermore, the investigation will also establish whether there was any unlawful appropriation or expenditure of public money,” Kganyago said.
In addition to all of these aspects of the probe, the SIU will also probe financial misconduct while assessing systemic failures, he said.
Picture: X/@tyson_929
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Compiled by Matthew Petersen
