Ramaphosa Orders Special Investigation into Corruption at OR Tambo Municipality

President Cyril Ramaphosa has directed the Special Investigating Unit (SIU) to investigate allegations of corruption within the OR Tambo District Municipality. The investigation will focus on a range of issues tied to the municipality’s infrastructure projects, specifically concerning the construction of the Signal Hill Reservoir, the appointment and payments related to the Amatola Water Board, and various other bulk infrastructure initiatives.

The SIU’s new mandate, issued this week, extends to examining several critical contracts and financial transactions involving water supply infrastructure. This includes scrutinizing the construction of the Signal Hill Reservoir, the appointment of Amatola Water Board in 2019, and any potentially irregular payments made to the board. Additionally, the investigation will cover the construction of the Mqanduli Bulk Water Scheme, the hiring of Gcinasonke Engineers (Gcinasonke), and any irregular payments to this firm in 2019. It will also address similar concerns related to the appointment of Khwalo’s Construction (Khwalo) and their payments, as well as issues surrounding the supply and installation of pumps at Mhlontlo Cluster 1 and the appointment of Valotone 94 CC and Phoenix Tanks (Pty) Ltd.

Furthermore, the probe will include the electrification projects for Mthatha Dam and Highbury, along with the construction of the Thornbill Clear Water Pump Station. The focus will be on alleged irregularities in payments made to Amatola for these projects between 2018 and 2019, and whether these payments were made in a manner that was fair, competitive, transparent, equitable, or cost-effective.

The SIU’s investigation also aims to uncover any instances of irregular, improper, or unlawful conduct by municipal officials or entities involved in these contracts. This inquiry follows a forensic report presented to the OR Tambo District Municipality council in 2020. The report highlighted significant financial discrepancies, including an unexplained advance of R28 million to Amatola Water and an additional R12.6 million paid for materials that were reportedly not delivered. The report also noted questionable payments for various invoices.

President Ramaphosa initially authorized the SIU’s investigation into the OR Tambo District Municipality’s strategic, technical, and operational support services tenders in late 2022. This was prompted by Proclamation R80 of 2022, which empowered the SIU to investigate corruption and maladministration within the municipality and recover any lost funds.

The current investigation will cover allegations from July 2018 to August 2024, focusing on unauthorized, irregular, or wasteful expenditure by the government. SIU spokesperson Kaizer Kganyago emphasized that the unit’s mandate includes addressing any financial mismanagement or misconduct discovered during the probe.

The OR Tambo municipality has been contacted for comments on the investigation, and Zimkhitha Macingwane, a spokesperson for the municipality, has been approached for a statement. Her response will be included once it is received.

As the SIU embarks on this comprehensive investigation, it underscores a broader effort to ensure transparency and accountability in municipal operations and infrastructure projects across the country. The probe is expected to bring to light any financial misconduct and ensure that those responsible for any irregularities are held accountable.