Written reply by President Jacob Zuma to question submitted in Parliament:

914. Mr J Selfe (DA) to ask the President of the Republic:

What is the (a) intention, (b) starting date, (c) expected conclusion date, (d) scope and (e) current status of each investigation that is currently being conducted by the Special Investigating Unit (the SIU)? 

Reply:

The following investigations, which were all referred to the Special Investigating Unit (SIU) in terms of section 2(1) of the Special Investigating Units and Special Tribunals Act, 1996 (Act 74 of 1996), by proclamation in the Gazette, are currently being prioritised.

A synopsis of the intention and scope, the starting date, the estimated date for conclusion of the investigation and the status of each investigation are indicated in respect of each matter.

1. Kopanong Local Municipality (Free State province)

1.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 July 2006 and 31 March 2009:

• The procurement of consulting or related services by or on behalf of the Municipality and related expenditure incurred in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Municipality.
• The manipulation of the Municipality's supply chain management or procurement processes.
• Any related unauthorised, irregular or fruitless and wasteful expenditure.
• losses or prejudice suffered by the Municipality as a result of the unnecessary or wasteful engagement of consultancy or related services, payments made to consultancy or related service providers notwithstanding their non-performance, incomplete performance or defective performance and the settlement of claims made by consultancy or related service providers for payments not lawfully due to them.

1.2 Starting date of investigation

The investigation commenced on 12 October 2011, which is the date upon which Proclamation No. R.58 of 2011 was published in the Gazette.

1.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 October 2012.

1.4 Current status of investigation

Evidence is being collected and is being analysed.

2. National Department of Rural Development and Land Reform

2.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 January 2006 and 18 February 2011:

• The application for and award of grants, the transfer of land or the payment of funds to beneficiaries and the administration thereof by the department, under the Department's Land Reform Programme, in a manner that was -

(a) contrary to applicable -

(i) legislation;
(ii) manuals, guidelines, practice notes and instructions issued by the National Treasury; or
(iii) manuals, policies, procedures, instructions, prescripts or practices of, or applicable to the department; or

(b) fraudulent. - The incurrence of - 

(i) irregular expenditure;
(ii) fruitless and wasteful expenditure; or 
(iii) expenditure not due, owing and payable, in relation to payments made, land transferred or grants awarded to beneficiaries, suppliers, contractors or service providers, in or relating to the Department's Land Reform Programme.

2.2 Starting date of investigation

The investigation commenced on 18 February 2011, which is the date upon which Proclamation No. R. 8 of 2011 was published in the Gazette.

2.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 March 2014.

2.4 Current status of investigation

Thirty investigations have been finalised, which resulted, inter alia, in:

(a) The arresting of four officials and a KwaZulu-Natal ("KZN") businessman on fraud and corruption charges relating to the irregular awarding and administration of land reform grants to the value of R51 million.

(b) The seizure of farms and assets to the value of R51 million in KZN, with additional preservation orders by the Asset Forfeiture Unit ("AFU") pending.

(c) Six matters being referred to the Directorate for Priority Crime Investigation ("Hawks") of the South African Police Service ("SAPS"), the applicable prosecuting authority and AFU for the institution of criminal proceedings and the seizure of assets as proceeds of crime to the value of R86 million.

(d) The recommendation for the institution of civil proceedings for purposes of making civil recoveries totalling R28 million, where the cause of action resulted from the irregular awarding and administration of land reform grants.

(e) The recommendation for the institution of disciplinary proceedings against officials or employees implicated in the irregularities.

(f) The identification of maladministration and non-compliance with policies.

3. George Local Municipality (Western Cape)

3.1 Intention and scope of investigation The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 January 2004 and 9 December 2010:

(a) Losses suffered by the Municipality as a result of unlawful conduct or irregular practices by the Municipality's personnel or persons or entities doing business with the Municipality in relation to payments made to or disposal of municipal land to the George Housing Agency ("GHA") or the corrupt benefitting as a result of the alienation of municipal property.

(b) The procurement of goods, works or services by or on behalf of the Municipality and related expenditure incurred by the Municipality in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Municipality.

3.2 Starting date of investigation

The investigation commenced on 9 December 2010, which is the date upon which Proclamation No. R. 76 of 2010 was published in the Gazette.

3.3 Estimated date for conclusion of investigation

The investigation is nearly completed.

3.4 Current status of investigation

(a) The SIU came to the conclusion that the former Municipal Manager and the Legal Adviser.

(i) were grossly negligent by taking the incorrect legal position during the establishment of the GHA;

(ii) were grossly negligent in authorising three payments to the value of R5.1 million to the GHA, which was unlawful or contrary to the provisions of the Local Government:

Municipal Systems Act, 2000 (Act No. 32 of 2000) (Systems Act).

(b) The matters referred to in (a), above, need to be referred to:

(i) The SAPS or the applicable prosecuting authority for criminal investigation and the potential institution of criminal proceedings; and

(ii) the Municipality for the potential institution of civil proceedings, against the persons implicated in the irregularities or otherwise responsible for the losses suffered by the Municipality.

(c) The investigation into the other matters set out in the proclamation revealed no indication of irregularities and no further action is required.

4. Oudtshoorn Local Municipality (Western Cape)

4.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 January 2004 and 4 February 2011:

(a) The procurement of goods, works or services by or on behalf of the Municipality and related expenditure incurred by the Municipality in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Municipality.

(b) Losses or prejudice suffered by the Municipality as a result of unlawful conduct or irregular practices of the Municipality's personnel, the Municipality's suppliers and service providers or third parties.

(c) Losses or prejudice suffered by the Municipality as a result of the mismanagement of the Municipality's assets, finances or other resources.

4.2 Starting date of investigation

The investigation commenced on 4 February 2011, which is the date upon which Proclamation No. R. 6 of 2011 was published in the Gazette.

4.3 Estimated date for conclusion of investigation

The investigation has been finalised and a report is being drafted.

4.4 Current status of investigation

The following findings have been made, inter alia:

(a) R1.7 million in duplicate payments to a service provider has been identified in a housing project.

Evidence of fraud and corruption in this regard, implicating a former Municipal Manager, has been referred to the SAPS or the applicable prosecuting authority.

(b) A service provider instituted a civil claim to the value of a R2.7 million against the Municipality. The SIU, however, found the payment on which this claim is based to be irregular.

(c) Evidence obtained revealed possible theft of Municipal trust funds and a number of other possible irregularities by a law firm contracted to collect municipal debt. The matter has been referred to the SAPS or the applicable prosecuting authority for criminal investigation or the potential institution of criminal proceedings.

(d) The irregular procurement of services at inflated cost of between R6.5 million and R8.4 million from a service provider has been identified. The investigation has revealed contraventions of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003 ("MFMA") and possible fraud. The matter has been referred to the SAPS or the relevant prosecuting authority.

(e) The irregular procurement of services in order to do an unnecessary survey at a cost of R559 648.40 has been identified. The investigation has revealed contraventions of the MFMA and possible fraud. The matter has been referred to the SAPS or the applicable prosecuting authority.

(f) Irregular and unlawful procurement of consultants, to the value of R1.9 million, had been identified. The investigation has revealed evidence of contraventions of the MFMA and possible fraud.

The matter has been referred to the SAPS or the applicable prosecutingauthority.

(g) It was found that the services of a specific service provider were procured in an irregular and unlawful manner. The losses are still to be quantified and the matter is about to be referred to the SAPS or the applicable prosecuting authority.

(h) The SIU recommended the suspension of the Municipal Manager and recommended to the Municipality to institute proceedings in an attempt to recover losses and prevent further losses. Instead, the Municipal Council opted to enter into severance agreements with the Municipal Manager and former Municipal Manager, which indemnified these managers from liability for the losses they caused the Municipality.

5. Stellenbosch Local Municipality (Western Cape)

5.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 September 2005 and 14 January 2011:

(a) The procurement of goods, works or services by or on behalf of the Municipality and related expenditure incurred by the Municipality in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Municipality.

(b) Losses or prejudice suffered by the Municipality as a result of the mismanagement of the Municipality's assets, finances or other resources.

5.2 Starting date of investigation

The investigation commenced on 14 January 2011, which is the date upon which Proclamation No. R. 3 of 2011 was published in the Gazette.

5.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 May 2012.

5.4 Current status of investigation

The following findings were made to date, inter alia:

(a) In respect of the Kayamandi Cultural Day, evidence of fraud and contraventions of the MFMA were uncovered. The former Municipal Mayor, his brother, the Chief Financial Officer (CFO), the former Mayor, the former deputy Mayor, a councillor and a supplier or service provider have been implicated in these irregularities. The matter has been referred to the SAPS or the applicable prosecuting authority, but it appears unlikely that any losses will be recovered.

(b) Evidence of fraud and other statutory contraventions involving the former Municipal Manager, other municipal officials, a councillor and a supplier or service provider have been identified in respect of the demolition of a building.

This matter has been referred to the SAPS or the applicable prosecuting authority.

(c) In respect of the Stellenbosch 2010 Soccer World Cup Project, evidence of fraud and other statutory contraventions involving the former Municipal Manager, his brother, the CFO, the former Mayor, other councillors and suppliers or service providers were uncovered. The matter has been referred to the SAPS or the applicable prosecuting authority. The recovery of any losses is unlikely due to the fact that severance packages and/or settlement agreements have been entered into with those implicated.

(d) In respect of the investigation of seven tenders, evidence of irregularities such as conflicts of interest in the tender process was identified. The Municipality has already intervened by taking civil action and reported the matter to the SAPS early on in the investigation.

(e) In respect of the Kayamandi Stadium, no evidence uncovered to date has been able to substantiate the allegations under investigation.

6. Swellendam Local Municipality (Western Cape)

6.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 January 2006 and 29 February 2012:

Maladministration of the affairs of the Municipality by its councillors, officials, employees or agents in relation to:

(a) the supply chain management system of the Municipality;

(b) the management of the Municipality's finances and assets; and

(c) applications by developers for the development of the Swellengate and Swellenmark shopping centre developments and the Municipality's approval of such applications, including the causes of such maladministration.

6.2 Starting date of investigation The investigation commenced on 29 February 2012, which is the date upon which Proclamation No. R. 12 of 2012 was published in the Gazette.

6.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 28 February 2013.

6.4 Current status of investigation

The investigation has recently commenced and the collection and analysis of evidence is being done.

7. National Treasury Limpopo Intervention

7.1 Intention and scope of investigation

The SIU is to investigate the following alleged irregularities, which allegedly took place between 1 April 2010 and 23 March 2012:

Maladministration of the affairs of the Limpopo Provincial Treasury, the Limpopo Department of Health and Social Development, the Limpopo Department of Roads and Transport, the Limpopo Department of Education and the Limpopo Department of Public Works ("the Departments") in relation to their -

(a) cash management
(b) supply chain management
(c) contract management and
(d) budget preparation and implementation, including the causes of such maladministration.

7.2 Starting date of investigation

The investigation commenced on 23 March 2012, which is the date upon which Proclamation No. R. 21 of 2012 was published in the Gazette.

7.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 July 2012.

7.4 Current status of investigation Investigations are being conducted at the departments at the request of the National Treasury and in cooperation with the National Treasury, the South African Receiver of Revenue (SARS), the Accountant General, the Hawks and the National Prosecuting Authority (NPA).

8. National Department of Human Settlements

Housing Subsidies and Housing Contracts

8.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities in the affairs of the National Department of Housing, the Provincial Departments of Housing, the former Housing Development Boards and Corporations and Local Authorities and their appointed agents (hereinafter collectively referred to as the "Institutions"), which allegedly took place between 1994 and 5 March 2012:

(a) Loss of State funds that were allocated to low cost housing schemes;

(b) mismanagement and misuse of the State's low cost housing scheme; and

(c) the conduct of officials, employees and municipal councillors of the Institutions and their appointed agents responsible for or involved in the administration of the State's low cost housing schemes and in the payment of subsidies under such schemes, which has resulted in losses of or lack of control over property or money allocated for such schemes.

8.2 Starting date of investigation

The investigation commenced on 25 April 2007, which is the date upon which Proclamation No. R. 7 of 2007 was published in the Gazette.

Proclamation No. R. 7 of 2007 was subsequently amended by:

(a) Proclamation No. R. 35 of 2010, which extended the cut-off date of the period of investigation to 30 July 2010; and

(b) Proclamation No. R. 15 of 2012, which further extended the cut-off date of the period of investigation to 5 March 2012.

8.3 Estimated date for conclusion of investigation

The investigation into housing subsidies was completed on 31 March 2012. The estimated date for the conclusion of the remaining investigation is 30 April 2013.

8.4 Current status of investigation

8.4.1 The investigation into housing subsidies has been completed and a final report is being prepared.

8.4.2 In respect of the investigation into housing contracts the following:

(a) The investigation relates to housing projects approved up to 29 Feb 2012, with some investigations relating to projects approved as early as the 1996/97 financial year. The focus of the investigation relates to low cost housing construction contracts, where 59 contracts were identified for investigation. The total value of the 59 contracts that are being investigated is R4 billion. From the aforementioned 59 contracts, the investigations into 42 contracts have been completed and the investigations into 17 contracts are still ongoing across 7 provinces

(b) High level systemic findings made by the SIU include:

(i) Non-compliance with the Housing Act, 1997 (Act No. 107 of 1997) and National Housing Code;

(ii) non-compliance with the Public Finance Management Act, 1999 (Act No. 1 of 1999) ("PFMA"); and

(iii) non-adherence to Section 217 of the Constitution and other procurement related legislation in respect of the procurement of goods and services.

(c) Other findings made by the SIU include:

(i) Fruitless and wasteful expenditure amounting to R27.9 million for certain investigations;

(ii) potential losses estimated at over R71 million suffered by provincial departments;

(iii) potential recoveries amounting to over R100 million have been identified in respect of certain investigations;

(iv) various instances of misconduct by officials, employees or agents of the Institutions; and

(v) possible criminal charges against some of the previous and/or current heads of departments.

(d) An investigation is currently being conducted in respect of the People's Housing Process in the Western Cape Province.

9. Gauteng Department of Health

9.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2006 and 14 May 2010:

(a) The procurement of goods, works or services by or on behalf of the department and related expenditure incurred by the department in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the department; and

(b) the incurrence of unauthorised expenditure, irregular expenditure, fruitless and wasteful expenditure and the payment of expenditure not due or payable.

9.2 Starting date of investigation

The investigation commenced on 14 May 2010, which is the date upon which Proclamation No. R. 21 of 2010 was published in the Gazette.

9.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 30 November 2012.

9.4 Current status of investigation Ten specific matters were identified for investigation. All these matters relate to contracts that were entered into by the Department with various suppliers or service providers. The total value of these matters is over R1 billion. Preliminary findings that were made to date include:

(a) Three cases of fraud to the value of R17 million have been identified and is being dealt with;

(b) recommendations were made to recover approximately R15.3 million from a number of former senior officials or employees of the Department; and

(c) duplicate payments to the value of over R13 million have been identified. Cash recoveries for duplicate payments to the value of over R1 million were made.

10. Ekurhuleni Metropolitan Municipality (Gauteng)

10.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2007 and 8 November 2010:

(a) Fruitless and wasteful expenditure and resultant losses suffered by the Municipality due to payments made for goods and services not supplied or not rendered or not delivered and the duplication of payments due to fraudulent or corrupt involvement by Municipal employees, officials, contractors, service providers and suppliers.

10.2 Starting date of investigation

The investigation commenced on 8 November 2010, which is the date upon which Proclamation No. R. 63 of 2010 was published in the Gazette.

10.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 30 November 2012.

10.4 Current status of investigation

(a) 11 waste management contracts to the value of R530 million have been reviewed.

(b) Five officials or employees of the Municipality have been suspended. One official subsequently resigned and one official has been dismissed. The disciplinary hearings of the other three officials are pending.

(c) The investigation identified R1.8 million of ostensibly fraudulent invoices that were submitted to and paid for by the Municipality in respect of the refuse bins contract.

(d) The investigation identified R10 million that was claimed for escalations, despite the fact that no escalations have been approved.

(e) Irregular payments to the amount of R8.9 million on invoices for the waste removal contract were uncovered during the investigation.

(f) The unlawful transfer of R20 million without council approval was identified.

(g) In respect of the investigation of the ICT contracts, the following:

(aa) The investigations in respect of one contract have been completed.

(bb) A number of suspects were arrested and have appeared in court.

(cc) An asset forfeiture order was obtained and assets to the value of R32 million have been seized.

(dd) One senior official was suspended for fraudulently signing invoices to the value of R12.5 million. Criminal conduct is being investigated by the SAPS.

(h) In respect of the investigation of a security contract, the following:

(aa) It was found that the municipality exceeded its budget by R15 million and the service provider admitted that the contract was awarded based on a bid document not completed by him. Stock to the value of R4 million was invoiced and paid for, but cannot be accounted for. Total losses are still being quantified but the owner of the service provider has since died. The SIU is negotiating possible recoveries with the trustee of the estate of the service provider.

(i) In respect of various contracts that relate to the upgrading of sports facilities, the investigation uncovered that although R35 million was paid for the upgrading of 30 sports fields, no work has been done or the work has not been completed.

(j) In respect of employee management by the municipality, the following:

(aa) Eight officials were identified with fraudulent matric certificates. They have since been dismissed and criminal cases have been registered.

(bb) Various officials have been identified with criminal convictions.

(cc) Various fictitious claims made by employees were identified.

(dd) Various entities, which belong to employees of the municipality or their spouses are doing business with the Municipality.

(ee) Various "ghost" employees have been identified.

(k) In respect of a contract that relates to the purchasing of water meters and tokens, the investigation uncovered that according to invoices for September and November 2010, which were paid in May and July 2011, R38 million was paid for 17,421 meters and tokens but only 5,804 meters and 5,796 tokens were procured.

(l) The preliminary findings after an investigation of the Valuation Roll are as follow:

(aa) Various service providers were not recommended by the Bid Evaluation Committee and there were possible conflicts of interest.

(bb) In various instances payments for services were made in full although the services were not rendered.

(cc) Various instances of non-compliance with statutory provisions have been identified.

(m) As a result of the investigation an array of criminal charges were laid. R400 million has been recommended for recovery as a result of irregularities that were uncovered during the investigation.

11. Midvaal Local Municipality (Gauteng)

11.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2002 and 20 May 2011:

(a) Maladministration of the affairs of the Municipality by its councillors, officials, employees or agents in respect of:

(i) The improper, negligent or erroneous disposal of the Municipality's operating assets as being redundant assets.

(ii) The failure to properly implement the Municipality's Indigent Policy.

(iii) The erroneous issuing of town planning certificates.

(iv) The failure to obtain money belonging to the Municipality from the trust account of the Municipality's attorneys and the failure to utilise such money for municipal purposes.

(v) The failure to properly control the debt owing by the Municipality's debtors.

(vi) The failure to record the Municipality's assets in its asset registers.

(vii) The appointment of staff of the Municipality at incorrect post levels.

(b) The procurement of legal services by or on behalf of the Municipality and related expenditure incurred by the Municipality in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Municipality.

11.2 Starting date of investigation

The investigation commenced on 20 May 2011, which is the date upon which Proclamation No. R. 33 of 2011 was published in the Gazette.

11.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of investigation is 31 August 2012.

11.4 Current status of investigation

The investigation is nearing completion. To date the investigation had the following results, inter alia,:

(a) Irregularities in the debt collecting processes had been identified, in that 129 officials were identified with three months' arrear rates and taxes to the value of R354 805. These are being deducted from the officials' salaries to repay the amounts owed.

(b) One hundred debtor accounts were identified to the value of R56 870 456. To date R31 261 348 has been recovered.

(c) Through the investigation of the indigent database and grants, 2020 applications were identified where people failed to comply with the indigent policy and who benefitted from indigent grants. 53 applications are currently being reviewed and assessed.

(d) Various irregularities in personnel related matters have been identified.

12. Tshwane Metropolitan Municipality (Gauteng)

12.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2007 and 8 November 2010:

(a) Irregularities in the recruitment, selection and appointment of staff to the Municipality.

(b) Payment or remuneration, allowances or other benefits to Municipal staff that were not due, owing or payable or that was in excess of stipulated limits.

(c) Fruitless and wasteful expenditure by outsourcing work and services that could be rendered by the officials or employees of the Municipality.

(d) The mismanagement of finances, assets or other resources of the Municipality.

12.2 Starting date of investigation The investigation commenced on 8 November 2010, which is the date upon which Proclamation No. R. 62 of 2010 was published in the Gazette.

12.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 October 2012.

12.4 Current status of investigation

The investigation is in the process of being finalised. The investigation, inter alia, identified the following irregularities and maladministration:

(a) 65 officials had been identified who had or have conflicts of interest in contracts to the value of R185 million. Disciplinary action against these employees is pending.

(b) Various investigations relating to procurement have been finalised, which unveiled gross negligence, irregular expenditure, unauthorised expenditure, tender irregularities and fraud.

(c) Investigation into personnel related matters had the following results, inter alia:

(i) 212 employees were identified with fraudulent drivers' licenses and action is being taken against these employees.

(ii) Non-declaration of interest matters have been referred to the Anti-corruption Task Team (ACTT) and joint investigations are underway. An official was identified with links to six companies that have possibly defrauded the municipality of R100 million. The SIU is assisting with possible further disciplinary action.

(iii) Five senior officials were identified who submitted fraudulent qualifications which resulted in their appointments. Two of these officials have already been found guilty and dismissed.

(iv) One official was arrested and convicted of fraud due to using a stolen ID number.

(v) Criminal investigations have been finalised against 164 Metro police officials.

13. National Department of Social Development (DSD) and the South African Social Security Agency (SASSA)

13.1 Intention and scope of investigation

(a) The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 April 1996 and 30 March 2007 in respect of the Department of Social Development (DSD):

The payment and/or receipt of social grants or benefits in respect of deceased and/or fictitious persons and/or persons who do not or did not qualify for the receipt of such grants/benefits or any portion thereof and any conduct directed at, promoting, or facilitating payment or receipt of same.

(b) Conduct of government officials and/or agents responsible for the administration and/or payment of social grants or benefits which has resulted in losses of, lack of control over, or delays in the payment of monies allocated for the payment of such grants or benefits and any conduct directed at, promoting or facilitating same.

Proclamation No. R. 27 of 2010 authorised the SIU to investigate the following alleged irregularities, which allegedly took place between 15 November 2004 and 8 June 2010 in respect of the South African Social Security Agency (SASSA):

(a) The unlawful payment and receipt of social grants in respect of deceased or fictitious persons or by persons who do not qualify for any or all such social grants.

(b) Allegations that staff of SASSA have undisclosed or unauthorised conflicts of interest with suppliers or service providers of SASSA.

(c) Failure by staff of SASSA to disclose that they have engaged in business activities for reward outside their employment with SASSA

13.2 Starting date of investigation The investigation into the affairs of DSD commenced on 06 April 2005, which is the date upon which Proclamation No. R. 18 of 2005 was published in the Gazette.

Proclamation No. R. 18 of 2005 was subsequently amended by Proclamation No. R. 5 of 2007, which extended the cut-off date of the period of investigation to 30 March 2007.

The investigation into the affairs of SASSA commenced on 8 June 2010, which is the date upon which Proclamation No. R. 27 of 2010 was published in the Gazette.

13.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 March 2013.

13.4 Current status of investigation

The results of the investigation thus far are as follows, inter alia:

(a) 20,544 criminal convictions were recommended, which resulted in 17,880 convictions.

(b) 26,013 disciplinary hearings were recommended.

(c) 46,237 civil litigations were recommended and R304.9 million was recovered through civil litigation or admissions of debt.

(d) Actual savings that resulted from the investigation is calculated at R1 billion.

(e) Prevention of future losses resulted from the investigation is calculated at R11.9 billion.

14. Eskom

14.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2006 and 7 February 2012:

(a) Procurement of coal supplies and coal transport by or on behalf of Eskom and related irregular or fruitless and wasteful expenditure incurred in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing Eskom.

(b) Procurement of helicopter services for the Eastern Cape region by or on behalf of Eskom and related irregular or fruitless and wasteful expenditure incurred in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing Eskom, or which was conducted or facilitated by board members, officials or employees of Eskom with undeclared or unauthorised conflicts of interest.

(c) Any undisclosed or unauthorised interests which by board members, officials or employees of Eskom may have had in contractors, suppliers or service providers of Eskom and the extent of benefits so derived by such persons.

(d) Maladministration in the affairs of Eskom in relation to:

(i) The incorrect blending of different grades of coal to fuel its coal burning power stations;

(ii) the payment for or acceptance by Eskom of coal of inferior quality to that contracted for;

(iii) the procurement of and contracting for work, goods or services for fencing in excess of the need thereof;

(iv) the failure to safeguard fencing materials belonging to Eskom or in respect of which Eskom carried the risk for loss or damage; or

(v) payments made for the blending of coal, for coal or for fencing that were not due or payable, and any related losses that Eskom suffered.

14.2 Starting date of investigation

The investigation commenced on 7 February 2012, which is the date upon which Proclamation No. R. 2 of 2012 was published in the Gazette.

14.3 Estimated date for conclusion of investigation and status

After initial constraints that affected the funding of resources for this project, the investigation has now begun and the collection and analysis of evidence is underway.

The allocation of additional resources to this project is on hold until the Judicial Matters Amendment Bill, 2012, is finalised by Parliament, which will allow the SIU to recover funding from State institutions involved in SIU investigations, which funding will in turn be used to acquire or deploy additional resources to the SIU's investigations.

13.4 Current status of investigation

After initial constraints that affected the funding of resources for this project, the investigation has now begun and the collection and analysis of evidence is underway.

15. KwaZulu-Natal: Department of Public Works

15.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2005 and 27 August 2010:

(a) Allegations that staff of the department enjoy remuneration, income, allowances or rewards in conflict with the conditions of their employment with the department and contrary to the Public Service Act, 1994.

(b) Allegations that staff of the department have undisclosed or unauthorised conflicts of interest with suppliers or service providers of the department.

(c) The premature return by the department of performance guarantees lodged by construction contractors.

(d) The unlawful or irregular conduct by staff of the department, service providers to the Department and third parties relating to any of the aforementioned allegations.

15.2 Starting date of investigation

The investigation commenced on 27 August 2010, which is the date upon which Proclamation No. R. 43 of 2010 was published in the Gazette.

15.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 January 2013.

15.4 Current status of investigation

Considerable progress has thus far been made in the investigation. Some of the highlights are:

(a) A supplier or service provider is criminally charged with 150 counts of fraud and corruption relating to the award of contracts with a combined value in excess of R87 million. The AFU has frozen over R68 million of the supplier or service provider's assets pending trial.

(b) Two former and two current officials of the department have been arrested on charges of corruption and theft.

16. National Department of Public Works

16.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 October 2003 and 30 July 2010:

(a) The incurrence of irregular expenditure and/or fruitless and wasteful expenditure and the payment of expenditure not due, owing or payable.

16.2 Starting date of investigation

The investigation commenced on 30 July 2010, which is the date upon which Proclamation No. R. 30 of 2010 was published in the Gazette.

16.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 March 2014.

16.4 Current status of investigation

(a) The investigation focuses on a wide range of vulnerabilities in the supply chain management (SCM) environment of the Department of Public Works (DPW) and includes leases, prestige portfolio and capital works projects.

(b) To date five DPW officials were suspended, including one Deputy Director-General and disciplinary action instituted.

(c) Disciplinary action was also recommended against a further eight DPW officials for SCM related misconduct.

(d) Criminal proceedings were also instituted against current and ex DPW officials and suppliers or service providers for fraud and corruption involving approximately 32 contracts with a combined value exceeding R400 million.

(e) Civil recoveries in excess of R70 million were recommended as a result of overpayments and/or non-performance by suppliers or service providers.

(f) Recommendations were also made for the overturning of lease agreements with a total value in excess of R700 million due to non-compliance with SCM processes and prescripts.

(g) Disciplinary action was also recommended against four DPW officials found to have direct interests in companies contracting with the DPW.

(h) A consistent abuse of SCM delegations and non-compliance with SCM prescripts have been identified throughout the SCM value chain, as well as poor controls and lack of proper governance.

17.24 North West Municipalities

17.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2005 and 10 November 2009:

(a) Appointment of staff that is not suitably qualified or otherwise unsuitable.

(b) The promotion and excessive remuneration of staff, contrary to applicable laws and municipal policies.

(c) Failure to take appropriate action against non-performing or under-performing municipal staff.

(d) Allegations of procurement irregularities.

(e) Losses of municipal funds due to theft, fraud and misallocation and the irregular expenditure and mismanagement of municipal funds.

(f) The external influence over and manipulation of procurement and alienation processes.

(g) Undue preference to and favouring of certain parties in the awarding of contracts.

(h) The impairment of the independence and integrity of bid structures and processes.

17.2 Starting date of investigation

The investigation commenced on 10 November 2009, which is the date upon which Proclamation No. R. 72 of 2009 was published in the Gazette.

17.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 March 2013.

17.4 Current status of investigation: the investigation relating to all the identified municipalities is in an advanced stage and the following irregularities have been identified, inter alia:

(a) Payments were made in several instances despite the fact that goods or services that were contracted for were not delivered or not delivered in full.

(b) Various instances of non-compliance with SCM were identified.

(c) Various instances where the staff of the various municipalities have undisclosed or unauthorised conflicts of interest with suppliers or service providers of the municipalities were identified.

(d) Contracts are awarded to family members of senior officials.

(e) Various instances of -

(i) irregular appointment of personnel;

(ii) irregular promotions of personnel; and

(iii) irregular salary increases of officials, of various municipalities have been uncovered.

(f) Various instances of irregular appointment and remuneration of suppliers or service providers have been uncovered.

18. Mpumalanga Department of Cooperative Governance and Traditional Affairs

18.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 April 2007 and 5 March 2012:

(a) The procurement of and contracting for consulting or related services by or on behalf of the department in relation to its Water for All Flagship Project and payments made in respect thereof.

(b) The procurement of and contracting for sewerage suctioning or related services by or on behalf of the department and payments made in respect thereof.

(c) Maladministration of the affairs of the department and any losses or prejudice suffered by the department as a result of such maladministration in relation to its Water for All Flagship Project, the provision of sewerage suctioning or related services or the engagement of service providers or contractors to repair or refurbish water pipelines.

(d) Practices in terms of which officials or employees of the department were promised, solicited or received benefits or other forms of unlawful gratification from anyone in connection with the execution of their duties or the failure to execute their duties.

18.2 Starting date of investigation

The investigation commenced on 5 March 2012, which is the date upon which Proclamation No. R. 16 of 2012 was published in the Gazette.

18.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 March 2013.

18.4 Current status of investigation

The investigation has recently commenced and the collection and analysis of evidence is being done.

19. South African Broadcasting Corporation (SABC)

19.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2005 and 29 October 2010:

(a) Allegations that SABC board members or personnel have undisclosed or unauthorised conflicts of interest with suppliers or service providers of the SABC.

(b) Payment or remuneration, commission or allowances or the provisioning of benefits to the SABC's personnel that were not due, owing or payable or that was in excess of stipulated limits.

(c) The continued payment of remuneration or allowances or provisioning of benefits to the SABC's personnel suspended from duty for excessively long periods.

19.2 Starting date of investigation

The investigation commenced on 29 October 2010, which is the date upon which Proclamation No. R. 58 of 2010 was published in the Gazette.

19.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 May 2012.

19.4 Current status of investigation

The Investigation is nearly completed. Some notable results of the investigation are the following, inter alia:

(a) 42 potential conflicts of interest matters were investigated with a combined contract value of R2.6 billion in respect of which 23 disciplinary files were prepared for the SABC.

(b) Potential VAT fraud was identified and reported to South African Revenue Service (SARS), the SAPS or the applicable prosecuting authority.

(c) 4 000 business interests were investigated and 400 disciplinary files where prepared and are ready to be handed to the SABC.

(d) 15 possible criminal prosecutions were identified for non-compliance with the Companies Act.

(e) Serious deficiencies in the controls environment were identified and reported to the SABC.

(f) R35 million in potentially un-taxed fringe benefits were uncovered and reported to SARS.

(g) 20 revenue contracts were investigated to the value of R798 million. It was found that these contracts were non-compliant with policies. Severe corporate governance deficiencies were identified and reported. In this regard, disciplinary files were prepared and will be handed to the SABC. Criminal prosecutions may also follow.

(h) 131 procurement matters, valued at R932 million were investigated and irregular expenditure to the value of R152 million and fruitless and wasteful expenditure to the value of R35 million were to date identified. This number will definitely increase because an ongoing investigation is envisaged. Serious corporate governance deficiencies in this regard were identified and reported to the SABC.

(i) The SIU introduced data analytical techniques across various SABC business areas to assist the SABC Board to identify possible "red flag" areas in their operations.

(j) The SIU also assisted the Brixton Commercial Crime Unit of the SAPS in eight criminal matters that relate to the investigation. Seven case dockets have already been completed, whilst other case dockets are near completion. Four persons have been arrested on criminal charges and a warrant of arrest has been issued for another person.

20. Department of Arts and Culture - National Heritage Council

20.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2006 and 14 January 2011:

(a) The procurement of goods, works or services by or on behalf of the Council and related expenditure incurred by the Council in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the Council;

(b) the incurrence of irregular expenditure; and

(c) the making of false financial statements.

20.2 Starting date of investigation: the investigation commenced on 14 January 2011, which is the date upon which Proclamation No. R. 2 of 2011 was published in the Gazette.

20.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 30 April 2012 and a report is being prepared.

20.4 Current status of investigation

(a) The investigation focuses primarily on irregular expenditure and contracts, conflicts of interest and the compliance of the utilisation of expenditure in relation to the National Lottery fund.

(b) Irregular expenditure totalling R53.4 million, including lottery funding of R35 million, was identified.

(c) Two criminal cases were registered at the Serious Economic Offences Unit of the SAPS and referred to the ACTT.

21. Eastern Cape Department of Health

21.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2003 and 4 September 2008:

(a) Payments made to fictitious employees.

(b) Payment of salaries, benefits, commission, allowances and overtime to employees that were not due or owing to them.

(c) Non-compliance by the department's employees with applicable legislation governing the procurement processes.

(d) Procurement of goods or services by or for the department by its employees at the Kgotsong Santa Hospital from entities in which relatives, friends or associates of the department's employees held an interest.

(e) Payments made to suppliers or service providers for goods or services not completed or in excess of what was due.

(f) Losses suffered by the department due to the forfeiture of indemnification for accident damages as a result of the failure by staff of the department to timeously report accidents and submit insurance claims.

21.2 Starting date of investigation

The investigation commenced on 4 September 2008, which is the date upon which Proclamation No. R. 36 of 2008 was published in the Gazette.

21.3 Estimated date for conclusion of investigation

It is difficult to say, as a number of challenges were only recently overcome. Further, the SIU is in the process of applying for an extension to this proclamation that will also provide for a number of new allegations or matters to be investigated.

21.4 Current status of investigation

(a) Although this investigation has suffered from numerous challenges, including a perceived lack of cooperation by the department, there is now a renewed focus on this investigation and a dedicated team has been assigned.

(b) The SIU has noticed a marked improvement in the levels of cooperation with the department.

(c) Further, the SIU is in the process of applying for an extension to this proclamation that will also provide for a number of new allegations or matters to be investigated.

22. Eastern Cape Department of Education

22.1Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 April 2005 and 30 July 2010:

(a) Losses suffered by the department as a result of the mismanagement of its expenditure or through theft, fraud or other unlawful conduct and irregular practices of the staff of the department and third parties.

(b) The mismanagement of the remuneration or benefits of the staff of the Department.

(c) Remuneration or benefits granted to staff of the department, whilst these employees were not entitled to such remuneration or benefits or any part thereof.

(d) Failure by the department to take appropriate steps to recover remuneration and benefits paid out or granted incorrectly or erroneously.

(e) Irregularities in the recruitment, selection and appointment of staff to the department.

22.2 Starting date of investigation

The investigation commenced on 30 July 2010, which is the date upon which Proclamation No. R. 37 of 2010 was published in the Gazette.

22.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 30 September 2012.

22.4 Current status of investigation

(a) Various instances were uncovered during the investigation where the Department suffered losses.

(b) To date R4.4 million was recovered.

(c) Thus far the investigation ensured actual savings of approximately R30.3 million and prevented substantial future losses.

(d) 69 cases were identified for disciplinary proceedings.

(e) The SIU is also assisting the SAPS with 14 possible criminal prosecutions.

(f) Evidence is also being prepared for civil litigation in 16 matters that have been identified to date.

23. The former Eastern Cape Department of Roads and Transport

23.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 10 May 2001 and 28 March 2010:

(a) The procurement of goods, works or services by or on behalf of the former department and related expenditure incurred by the former department in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the former department.

(b) Undeclared or unauthorised conflicts of interest by officials or employees of the department.

23.2 Starting date of investigation

The investigation commenced on 20 May 2011, which is the date upon which Proclamation No. R. 34 of 2011 was published in the Gazette.

23.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 1 June 2013.

23.4 Current status of investigation

The following areas, within the scope of the SIU's terms of reference, have so far been identified for investigation:

(a) The Kei Rail project.

(b) The awarding of irregular tenders to three entities that provided IT related supplies or services. It seems that the contracts with these entities were continuously extended with no competitive bidding process being followed.

(c) Irregular payments, totalling R60 million, that were made to suppliers or service providers of Port St Johns Municipality.

(d) The alleged irregular awards of three tenders for ICT supplies or services.

(e) The irregular awarding of a tender to a training entity with questionable accreditation to train traffic officials.

(f) Allegations of corruption, fraud and maladministration against a senior official employed at the Alfred Nzo District Office of the department in relation to community-based transport.

(g) The alleged irregular award of tenders to three entities to construct/repair seven emergency and eight non-emergency roads for approximately R30 million between 2005 and 2009. It is alleged that some of these roads were never constructed or repaired.

24. South African Police Service

24.1 Intention and scope of investigation

The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 January 2005 and 22 December 2011:

(a) The procurement of goods, works or services (including leased accommodation) by or on behalf of the SAPS and related expenditure incurred by the SAPS in a manner that was not fair, competitive, transparent, equitable or cost-effective and which was contrary to applicable legislation or internal policies and procedures governing the SAPS.

(b) The incurrence of unauthorised expenditure, irregular expenditure, fruitless and wasteful expenditure and/or the payment of expenditure not due, owing or payable.

(c) Allegations that SAPS staff have undisclosed or unauthorised conflicts of interest with suppliers or service providers of the SAPS.

(d) Non-compliance with the provisions of the Government Immovable Asset Management Act, 2007.

(e) The unlawful or irregular conduct by staff of the SAPS, suppliers or service providers to the SAPS and third parties relating to any of the above allegations.

24.2 Starting date of investigation

The investigation commenced on 10 August 2010, which is the date upon which Proclamation No. R. 42 of 2010 was published in the Gazette.

Proclamation No. R. 42 of 2010 was subsequently amended by Proclamation No. R. 73 of 2011, which extended the cut-off date of the period of investigation to 22 December 2011.

24.3 Estimated date for conclusion of investigation

The estimated date for the conclusion of the investigation is 31 July 2013.

24.4 Current status of investigation

(a) One matter relating to the forensic Science Laboratory Division of the SAPS (the FSL) is being worked on by the ACTT with SIU assistance. Other matters pertaining to the FSL also being investigated by the SIU and the SIU are awaiting documentation in this regard. The value of this investigation is approximately R12 million.

(b) Investigations in respect of SAPS facilities are the following:

(i) Intenda: No criminal conduct or unauthorised, fruitless and wasteful expenditure was uncovered during the investigation. However, findings relating to disciplinary action have been made in that members of the SAPS failed to report for training, which had already been paid for.

(ii) Kingsgate: No criminal conduct or unauthorised, fruitless and wasteful expenditure were uncovered during the investigation. However, systematic recommendations will be made to cover risk areas that were identified during the investigation. The value of the contract is R287 million.

(c) Investigations in respect of the TetraNet installation and deployment are nearly complete. Discussions are underway with the ACTT for further investigation. Recommendations for disciplinary action against 2 SAPS members will also be made. Others implicated members of the SAPS in this matter have since left the SAPS.

(d) In respect of the construction of 33 police stations, it was found that the SAPS had no legal mandate to build its own stations and should have referred this to the Department of Public Works (DPW). This makes the entire expenditure for the building of the police stations irregular.

(e) Investigations in respect of possible conflicts of interest should be complete by the end of May 2012. 193 files will be handed to the SAPS with a recommendation for possible disciplinary action.

(f) Documentation relating to the National Police day celebrations was recently received and is currently being analysed. The amount involved is approximately R48 million.

(g) The investigations into the contracts between the SAPS and Midway Two Holdings, which are valued at R1 billion, are ongoing.

(h) In respect of the investigation relating to the installation of solar panels at the Boschkop police stations, it was found that the purchasing and installation was done without following the proper SCM procedure.

(i) The SIU also assisted the Public Protector with investigations into leases for SAPS offices in Pretoria and Durban.

25. National Department of Arts and Culture -investing in culture

25.1 Intention and scope of investigation The SIU was requested to investigate the following alleged irregularities, which allegedly took place between 1 April 2006 and 30 July 2010:

(a) The under-spending or misspending of the department's budgets for the 2010 FIFA World Cup Projects for the 2007, 2008 and 2009 financial years.

(b) Failure by staff of the department to ensure that transfers and subsidies to beneficiaries in terms of the Department's Arts and Culture in Society Programme, the 2010 FIFA World Cup, the Investing in Culture Programme and the Cultural Development Programme were applied for their intended purposes.

(c) The incurrence of irregular expenditure or fruitless and wasteful expenditure in respect of the aforementioned Programmes.

25.2 Starting date of investigation

The investigation commenced on 30 July 2010, which is the date upon which Proclamation No. R. 36 of 2010 was published in the Gazette.

25.3 Estimated date for conclusion of investigation: The investigation has been finalised and a final report is being prepared.

25.4 Current status of investigation

This investigation has been finalised. Some of the irregularities that were uncovered by the investigation are the following:

(a) Misuse of R26 million that was earmarked for the Soccer World Cup.

(b) Irregular expenditure uncovered relating to 17 contracts totalling R94 million.

(c) Various instances of unauthorised and irregular expenditure were identified.

(d) A supplier or service provider not registered with SARS claimed VAT to the value of R390 439. This matter has been referred to SARS, the SAPS or the applicable prosecuting authority.

(e) Civil recovery in excess of R22.5 million was recommended.

Issued by the Presidency, September 30 2012

Click here to sign up to receive our free daily headline email newsletter