Date: October 25, 2024

Subject: Overview of SIU Proclamation 207 of 2024

Purpose: This document summarizes the key points of the Special Investigating Unit (SIU) investigations authorized by President Cyril Ramaphosa into the Makana Local Municipality.

Proclamation 207: This proclamation empowers the SIU to investigate allegations of serious maladministration in seven specific tenders awarded by the Makana Local Municipality:

• Makana Bulk Sewer Upgrade Phase 1
• Professional Engineering services for groundwater development projects
• Implementing Agents for water conservation and demand management
• Re-appointment of MBB Consulting for water conservation and demand management
• Electrification of the greater Makana and surrounding areas 11KV Line Project
• Host municipal emails and provide internet services
• Operate and manage the Makana burning landfill site for six months

Key Areas of Investigation:

• Financial Irregularities: The SIU will scrutinize payments made in a manner that was not “fair, competitive, transparent, equitable, or cost-effective” or violated relevant legislation and guidelines. This includes unauthorized, irregular, or wasteful expenditure by the Municipality or the State.
• Conduct of Officials and Contractors: The investigation will examine any irregular, unlawful, or improper conduct by officials or employees of the Municipality, as well as suppliers, service providers, or any other involved parties.
• Conflicts of Interest: The SIU will investigate any undisclosed or unauthorized interests that municipal officials or employees may have had in suppliers or service providers involved in bidding or awarded contracts. This includes interests identified by the Auditor-General of South Africa (AGSA).
• Stand-by Allowances and Overtime: The investigation will probe allegations of serious maladministration in the payment of stand-by allowances, overtime, and benefits to employees, specifically focusing on instances that contradict applicable manuals, policies, and procedures identified in the AGSA Management Report dated June 30, 2020.

Timeline:

The SIU investigation will cover allegations occurring between January 1, 2019, and October 18, 2024. It will also examine related activities that took place before and after this period, involving the same individuals, entities, or contracts.

SIU Powers and Responsibilities:

• Investigation and Reporting: The SIU will conduct a comprehensive investigation, identify systemic failures, and recommend measures to prevent future losses.
• Criminal Referrals: Evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority (NPA).
• Civil Litigation: The SIU is authorized to initiate civil action in the High Court or a Special Tribunal to address wrongdoing related to corruption, fraud, or maladministration.

Conclusion:

The SIU investigations into the Makana Local Municipality signal a strong commitment to addressing allegations of corruption and maladministration within this long-troubled municipality. The outcomes of these investigations could have significant implications for those found to have engaged in wrongdoing and could lead to recommendations for improving governance and financial management practices.