The Special Investigating Unit (SIU) has referred municipal contracts worth R1.1 billion for civil proceedings, as part of investigations into irregularities dating back to 2012.
Briefing Parliament’s Standing Committee on Public Accounts, acting SIU head Leonard Lekgetho said contracts valued at R545 million have already been declared invalid and set aside.
Despite these findings, the SIU has so far recovered only R1.1 million, with a further R58.9 million in cash or assets still targeted for recovery.
Lekgetho said the investigations have led to 362 referrals to the National Prosecuting Authority for criminal probes, 222 referrals for disciplinary action against officials and 629 for administrative action.
The SIU has conducted investigations across several provinces, including the Free State, North West, Gauteng and KwaZulu-Natal, with multiple cases completed and others still under way.
Findings across municipalities point to recurring issues such as irregular appointment of service providers, corruption, missing tender documentation, non-compliance with procurement processes and poor contractor performance.
In Tshwane, the SIU is investigating procurement irregularities linked to upgrades at the Rooivaal Wastewater Treatment Works, where alleged misconduct has resulted in significant irregular expenditure.
The unit has made several referrals related to this matter, including disciplinary actions against officials, criminal investigations and recommendations for contractor blacklisting.
In KwaZulu-Natal, ongoing investigations into water and sanitation projects at eThekwini Metro have uncovered multiple contracts affected by procurement irregularities and non-performance, with several officials already referred for disciplinary processes.
Additional cases in municipalities such as Masilonyana and Mahikeng have revealed further instances of irregular procurement and governance failures.
Lekgetho said the pattern emerging from these investigations highlights systemic weaknesses in municipal financial management, particularly violations of the Municipal Finance Management Act.
The SIU continues to pursue legal and administrative action as part of efforts to recover public funds and hold those responsible accountable.
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