The investigation will examine transport contracts, security tenders and payments linked to alleged maladministration and financial losses.
Special Investigating Unit head Leonard Lekgetho. Picture: Gallo Images
The Special Investigating Unit (SIU) has been authorised to probe allegations of serious maladministration, corruption and irregular expenditure at North West Transport Investments SOC Ltd (NTI) and the eThekwini Metropolitan Municipality.
President Cyril Ramaphosa signed a new proclamation and an amendment that empowers the SIU to investigate the claims.
SIU tasked with probing transport contracts
SIU spokesperson Selby Makgotho said the unit is mandated to recover any financial losses incurred by the state or the two institutions due to corruption or maladministration.
Makgotho said with regard to the NTI, Ramaphosa has directed the SIU to look into “the affairs of the NTI, its wholly owned subsidiary, North West Star SOC Ltd (NSL), and the Atteridgeville Bus Service SOC Ltd (ABS), which is also a wholly owned subsidiary of NSL”.
The spokesperson said the unit will investigate the procurement and contracting processes related to:
- Fuel supplied by Zentrafor Fuel (Pty) Ltd, trading as Fuel;
- Vehicle rental services provided under a Vehicle Rental Agreement dated 28 July 2023; and
- Commuter bus services outlined in a Sub-Contractor Agreement dated 7 July 2023, by or on behalf of the NTI, as well as the payments made for these services.
Investigation to examine payments and business rescue actions
In addition, the anti-corruption agency has also been authorised to investigate significant maladministration in the NTl’s operations regarding the receipt, processing, approval, and payment of claims submitted by Tansanat Coachlines (Pty) Ltd, Ziggy Investments CC, and the Tansanat Coachlines (Pty) Ltd Ziggy Investments CC Joint Venture.
“The SIU will examine whether these operations breached applicable legislation and guidelines issued by the National Treasury or the relevant Provincial Treasury,” Makgotho said.
The investigation will also look into actions taken by the Business Rescue Practitioner appointed on 21 July 2022, their agents, or NTI employees.
It will also examine whether individuals or entities received undue benefits and whether this resulted in serious maladministration, causing actual or potential losses to the NTI or the government.
eThekwini security contracts added to probe
Ramaphosa also extended the investigation period and the procurement of several services at the eThekwini Metropolitan Municipality.
The president had previously authorised the SIU to investigate the eThekwini Metropolitan Municipality‘s procurement of security and VIP protection services.
“It now also includes the procurement or contracting of security and VIP protection services under contract numbers CMS 0031, 1C15104, 1 C 18709, 1C 20359, 1 X 31747, and 1 C 29300, as well as any subsequent extensions or variations made by or on behalf of the municipality, including relevant payments,” Makgotho said.
He said the unit’s investigation will determine whether the procurement processes followed were fair, competitive, transparent, equitable, and cost-effective.
It will also determine whether irregular expenditure was incurred.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” Makgotho said.
