City Welcomes SIU Investigation, Questions Timing

14 March 2019

Today, I would like to welcome President Cyril Ramaphosa’s decision to institute a Special Investigating Unit (SIU) investigation into corruption under the previous administration, dating back to 2009 and in specific relation to the ANC administration’s decision to procure fire engines - known as the “red fleet” - from Fire Raiders (Pty) Ltd in a 2014 tender valued at R86,4 million at the time.

It is my hope that this investigation will not amount to another empty gesture like a Commission of Enquiry or talk shop, but rather achieve the justice which has been systematically denied through the failure of the criminal justice system to prosecute cases of corruption investigated by the City of Johannesburg.

The residents deserve to see justice done and those responsible for corruption must be held criminally to account.

Given that the City’s cases have been ignored, even when pleas were issued to the President himself, the City will study the terms of reference of the investigation with great interest. The President’s announcement is at odds with the manner in which our investigations have been ignored. This causes concerns around whether these cases are the real target of the investigation, or whether a fishing expedition is being orchestrated in the run-up to the elections to discredit the Multi-Party Government.

The war against corruption is won not by words, but by deeds and its success is measured not by commissions of enquiry but by the number of people behind bars.

Since coming into office, the City has opened over 4000 cases totaling more than R24 Billion in corruption under investigation.

The City, after having been ignored by the criminal justice system, sought the assistance of the President himself in ensuring that these cases be urgently addressed by our law enforcement authorities. A copy of this letter is attached.

The City also directed correspondence to the new National Director of Public Prosecutions (NDPP), Adv. Shamila Batohi, in order to acquire urgent assistance.

This followed the disappointing trend of cases being withdrawn by the National Prosecuting Authority (NPA), which has failed to ensure those responsible for corruption are held to account.

Unfortunately, to date, my correspondence to the President, detailing 60 critical cases in need of urgent attention, has not even been acknowledged let alone acted upon. 

It is my hope that the President will soon be seized with these matters for the benefit of our residents.

In respect of this specific investigation, am pleased to inform our residents that multi-party government has already taken the appropriate action, within its powers. 

In November of 2017, the City cancelled this contract after it was discovered that the tender was awarded on the basis of forged Bid Evaluation Committee (BEC) documents.

The agreement, ultimately entered into in 2015, was allegedly entered on condition that the contractor furnished the City with a performance guarantee of R16 million and that it demonstrated that it had sufficient cash flow to enable delivery.

A purchased order of R19 million was also issued in favour of contractor for delivery of the first set of fire engines to the City.

Alarm bells went off after the contractor not only failed to provide the performance guarantee but also failed to deliver the 29 new fires engines per the contract.

Following the conclusion of our investigation it appeared that the minutes from the BEC, which sat to adjudicate proposals for the tender, were forged. As a result of the seemingly criminal conduct behind the tender and the contractor’s failed performance, the City had no choice but to seek the termination the contract.

The City has laid criminal charges in relation to this.

These kinds of corrupt dealings, presided over by the past administration, have cost the residents of this City dearly for years. In this case, due to this corruption, the City’s ability to provide adequate emergency services had been compromised.

Following the termination of the contract, the City begun a new process for the acquisition of fire engines that will ensure the provision of quality emergency services to our residents. 

As the new administration, we will do all we can to ensure that those responsible for this corruption are held to account. In this respect, I welcome the SIU investigation.

The multi-party government in the City of Johannesburg operates transparently, and is confident that its efforts to uncover the corruption in these cases speaks for itself.

Issued by Luyanda Mfeka, Director: Mayoral Communications, Office of the Executive Mayor, 14 March 2019