The Special Investigating Unit (SIU) has pounced on a Free State municipality over suspected tender irregularities and maladministration involving water supply contracts. 

Assisted by the Hawks and the South African Police Service (SAPS), the unit’s members swooped on the Masilonyana Local Municipality’s premises in Welkom. They seized documents relating to tenders for the Brandfort Water Treatment Works and Raw Water Pump Stations and the upgrading of the Brandfort Sports Centre Phase II including payment records and electronic devices. 

The SIU Spokesperson Kaizer Kganyago said the raid on Monday, 09 December 2024, comes after the Welkom Magistrate Court granted the unit a warrant to search three Masilonyana Local Municipality premises and seize evidence that may assist with its ongoing investigation.

The search and seizure warrant was granted on Tuesday, 03 December 2024.

“The investigation focus also seeks to establish whether municipal officials, service providers, or any other involved parties unduly benefit themselves or others, leading to unauthorised, irregular, or fruitless and wasteful expenditure or financial losses for the municipality. The search and seizure operation is the SIU’s last resort to access documents needed for the investigation and obtain the necessary documentation for its investigation,” said Kganyago. 

“Since the proclamation was published on 13 September 2024, the SIU has made multiple attempts to contact the municipality in an effort to access the required documents voluntarily; however, these attempts have gone unanswered. This lack of cooperation prompted the SIU to seek the court’s assistance in securing a warrant to search and seize pertinent documents and electronic equipment.” 

During the search, Kganyago said the unit collected a range of documentation and devices essential for auditing and compliance concerning successful tenders awarded between 1 January 2013 and 13 September 2024, as outlined in Proclamation 182 of 2024. 

As stipulated in the warrant, the seized materials include company registration documents, payment records (invoices, purchase orders, remittance advice), electronic devices, including laptops, mobile devices, and external storage media used by relevant officials and employees, and any associated electronic data, including emails and cloud storage information linked to specific personnel.

“The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act) to subpoena bank statements and cell phone records, search and seize evidence, and interrogate witnesses under oath to thoroughly investigate allegations brought before it. The SIU is also empowered to institute a civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations caused by acts of corruption, fraud, or maladministration. In line with the SIU Act, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action,” he concluded.

In September 2024, the South African Municipal Workers’ Union (Samwu) in the Free State welcomed President Cyril Ramaphosa’s decision to authorise an investigation into allegations of maladministration at the Masilonyana Local Municipality.

“Samwu is particularly concerned about the negative impact of maladministration and financial mismanagement on municipal workers and the communities they serve. The lack of proper financial oversight and accountability has resulted in unauthorised, irregular or wasteful expenditure, ultimately having an adverse impact on service delivery and worker conditions,” said SAMWU provincial secretary Thabang Tseuoa in a statement.

Tseuoa reiterated that the Auditor-General’s report had already flagged the Masilonyana Local Municipality for its total collapse of internal controls, adding that the council’s political leadership once again failed to implement lasting solutions to the municipality’s challenges. 

“Proclamation 182 of 2024 directs the SIU to investigate two tenders awarded by the municipality, namely the refurbishment of the Brandfort Water Treatment Works and Raw Water Pump Stations and the upgrading of Brandfort Sports Centre Phase II. The investigation will examine whether municipal officials, service providers, or other parties unduly benefited themselves or others, resulting in unauthorized, irregular, or wasteful expenditure or financial losses for the municipality,” Tseuoa explained.

The SAMWU leader urged the newly elected Department of Cooperative Governance and Traditional Affairs (Cogta) MEC, Teboho Zacharia Mokoena, to follow Ramaphosa’s example by ensuring that the department adhered to constitutional prescripts in implementing corrective measures to stop the crisis.

Kganyago confirmed the SIU investigation covers the period 1 May 2020 to 13 September 2024, as well as any related activities before or after these dates that are pertinent to the investigation or involve the same individuals, entities, or contracts.