The Hawks are investigating alleged procurement irregularities and possible contract manipulation within the Eastern Cape department of human settlements following a dispute over a conveyancing tender.
The investigation, which is at an advanced stage, stems from allegations by a KuGompo City-based attorney who claims payments from a government contract were improperly redirected and irregularities concealed through administrative processes.
According to affidavits seen by sister publication Daily Dispatch, the attorney — who has since become a state witness — alleges that a conveyancing contract awarded through a joint venture was diverted to their former partner’s firm without explanation.
The joint venture was appointed to the department’s conveyancing panel in April 2023 after responding to a 2022 tender calling for qualified conveyancers to assist with the transfer of property ownership to housing beneficiaries across the province.
The partnership’s first assignment involved 357 property transfers in the Amathole district, covering areas in the Raymond Mhlaba and Amahlathi municipalities.
The firm received assignments worth R1.3m with no indication how much the department had allocated for the overall tender.
However, the attorney alleges that despite the joint venture being the successful bidder, the work was subsequently allocated to their partner’s firm.
They said they initially sought to resolve the matter administratively by asking the department to correct the contract to reflect the original bidding entity.
According to the affidavit, a senior department official rejected the request, stating that the work fell under a separate category of post-1994 transfers — an explanation the attorney claims was not contained in the original tender documentation.
In July 2025, they approached the high court in KuGompo City, launching a judicial review of the procurement process and seeking full disclosure of records relating to appointments, payments and allocation criteria.
In court papers, the attorney alleges that:
- A bid for the same tender was adjudicated months after the official closing date;
- Individuals not qualified as conveyancers were included on the panel;
- Joint venture records were altered without formal agreement; and
- The department failed to provide a complete record of proceedings as required.
Despite the ongoing litigation, the attorney alleges that a senior official continued to approach them informally to take on additional work, which they described as irregular.
“I still get calls even now begging me to take up another contract. I’ve even filed for damages the department has [allegedly] done,” they said.
“I am sure more can be uncovered from this and it looks like I’ve disrupted a pattern that has been ongoing for many years.”
The allegations triggered a criminal investigation, with the Hawks examining contracts awarded over several years.
In August 2025, investigators raided the department’s offices in Bhisho, seizing laptops and other devices as part of the probe.
Provincial Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana confirmed the investigation was ongoing.
“We can safely say that we’re on the right track,” he said.
Human settlements spokesperson Yanga Funani confirmed the department was aware of the matter but declined to comment further.
“Both matters are sub judice and therefore the department will not comment any further on them,” he said.
The case raises broader questions about procurement processes and oversight within the department, particularly in relation to how contracts are allocated and recorded.
Mandilakhe Kwababana
www.timeslive.co.za