Ramaphosa orders SIU probe into Mangaung Municipality contracts and Gauteng Health tender

President Cyril Ramaphosa has authorised Special Investigating Unit (SIU) probes into nine Mangaung Metropolitan Municipality contracts and a Gauteng Department of Health tender over alleged maladministration and irregular expenditure.

The investigations will focus on procurement processes, expenditure and possible misconduct involving municipal officials, service providers and other entities connected to the contracts.

The SIU said Proclamation 329 of 2026 “initiates an investigation into serious maladministration within the Mangaung Metropolitan Municipality in the Free State over nine contracts”.

According to the SIU, the investigation will focus on matters related to the establishment and operationalisation of the Mangaung Metropolitan Municipal Police, as well as alleged overpayments made by the municipality to suppliers.

“The investigation will specifically focus on the causes related to the establishment and operationalisation of the Mangaung Metropolitan Municipal Police, as outlined in Provincial Notice No. 124 of 2019, as well as overpayments made by the municipality to suppliers, as indicated in the municipality’s annual financial statements for the year ending June 30, 2024,” the SIU said.

The probe will scrutinise contracts involving branding and marketing items, corporate gifts, catering services, decorating items, structural assessments of municipal buildings, the upgrading and relocation of office space for the municipal police, the procurement of eight Toyota Corolla vehicles, a fire truck and the appointment of contractors for the municipality’s Integrated Public Transport Network.

The SIU said investigators would also examine “related unauthorised, irregular, or fruitless and wasteful expenditure incurred by the municipality or the State, as recorded in the Municipality’s Fruitless and Wasteful Expenditure Register for the financial years 2022–2023 and 2023–2024”.

The proclamation further empowers investigators to examine any improper or unlawful conduct by municipal officials, employees, suppliers and service providers linked to the contracts.

The investigation covers allegations dating back to October 1, 2016, and extends to July 31, 2026. The SIU said it is also authorised to investigate related conduct outside the specified period, including contracts “where services were paid for but not delivered”.

In a separate proclamation, Ramaphosa authorised an SIU investigation into the Gauteng Provincial Department of Health’s procurement of voluntary medical male circumcision services under Tender No. GT/GDH/099/2018.

“The investigation pertains to Tender No. GT/GDH/099/2018 and the payments made in relation to it, examining the process and compliance involved,” the SIU said.

Investigators will assess whether the procurement process complied with applicable laws and whether it was “fair, competitive, transparent, equitable, and cost-effective”.

The SIU said the probe would also examine compliance with National Treasury and Provincial Treasury regulations, departmental policies and procurement procedures.

“The investigation will also examine whether the process was fair, competitive, transparent, equitable, and cost-effective. It will also assess compliance with applicable legislation, as well as manuals, guidelines, practice notes, circulars, or instructions issued by the National Treasury or the relevant Provincial Treasury,” the SIU said.

The health department investigation will also review any unauthorised, irregular, fruitless and wasteful expenditure linked to the tender.

The SIU said the proclamation empowers investigators to probe allegations between August 1, 2018, and July 31, 2026, as well as any related conduct before or after that period.

“The SIU is mandated to investigate allegations of serious maladministration, irregular expenditure, unlawful conduct and any related corruption or fraud, and to recover any financial losses suffered by the State,” the SIU said.

In terms of the Special Investigating Units and Special Tribunals Act, the SIU can institute civil proceedings in the Special Tribunal or the High Court to recover losses and set aside unlawful contracts uncovered during its investigations

IOL News

Wendy Dondolo
iol.co.za

Wendy Dondolo
Author: Wendy Dondolo

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