Presidency update on the Special Investigating Unit Proclamations
22 July 2014
President Jacob Zuma has, during the period 2009 to 2014, signed thirty six (36) proclamations with five extensions, authorising the Special Investigating Unit (SIU) to probe departments and entities in the three spheres of government as well as state-owned enterprises.
Nine investigations have been completed and reports have been submitted to the Presidency, while twenty seven (27) investigations are still on-going. The reports indicate that progress is being made in the fight against corruption within the public service and the actions taken should serve as a deterrent to other officials.
The nine completed proclamations are the following:
a. Proclamation R.36 of 2010 in relation to the Department of Arts and Culture
The SIU investigated allegations which included 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. Seven criminal cases have been registered with the police involving matters amounting to R 2 375 000. Acknowledgements of Debt have been obtained to the total value of R351 000.
b. Proclamation R.58 of 2010 in relation to the South African Broadcasting Corporation
The SIU investigated allegations regarding SABC personnel which included undisclosed or unauthorised conflicts of interest with service providers of the SABC. Twenty eight criminal case have been referred to the police, nine for fraud and 19 for the Contravention of Companies Act of 61 of 1973. In addition, 464 disciplinary cases have been referred to the SABC for recommended action.
c. Proclamation R.59 of 2010 relating to the Ikhala Further Education and Training College (Ikhala FET):
Eastern Cape Province directed the SIU to investigate the procurement of goods and services, including leased accommodation, by or on behalf of the College and other expenditure incurred by the College in an improper manner. As a result of the investigation the Chief Executive Officer and the Director of Internal Audit at the College were found guilty and dismissed. In addition, the Internal Audit Director was charged with fraud and theft whereas the Principal was charged with fraud and corruption.
d. Proclamation R.76 of 2010 directed the probing of George Local Municipality in the Western Cape Province.
The SIU investigated 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 or the corrupt benefitting as a result of the alienation of municipal property. A criminal case against the Municipal Manager was referred to the National Prosecuting Authority while it was also recommended that the Municipality institute civil action against the Municipal Manager and the Legal Adviser for the loss to the value of R5.1 million to the Municipality.
e. Proclamation R.2 of 2011 directed the probe of the National Heritage Council within the Department of Arts and Culture.
The SIU investigated the procurement of goods, works or services by or on behalf of the Council and related expenditure incurred by the Council in an improper manner.
The SIU has referred two criminal cases of tender fraud to the police. In addition, recommendations were made for disciplinary charges to be instituted against eight staff members for non-compliance with statutes and regulations in both procurement and expenditure management at the National Heritage Council.
f. Proclamation R.3 of 2011 in relation to Stellenbosch Local Municipality in the Western Cape Province.
The SIU probed the procurement of goods, works or services by or on behalf of the Municipality and related expenditure incurred by the Municipality in an improper manner. The SIU has referred four criminal cases to the NPA and recommended disciplinary action against the officials, and also recommended that a civil matter be instituted by the municipality.
g. In terms of Proclamation in respect R.6 of 2011, Oudtshoorn Local Municipality in the Western Cape Province, the SIU investigated the procurement of goods, works or services by or on behalf of the Municipality and related expenditure incurred by the Municipality in an improper manner. The outcome is six criminal cases that were referred to the NPA which led to three arrests.
h. With regards to Proclamation R.37 of 2010 relating to the Department of Education in the Eastern Cape Province, the SIU investigated allegations which include 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.
i. Proclamation R.12 of 2012 in respect of Swellendam Local Municipality in the Western Cape Province.
The SIU investigated allegations which includes maladministration in relation to the supply chain management systems of the Municipality; management of the Municipality's finances and assets; 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. The SIU referred evidence to the NPA with regard to a municipal official and her spouse for fraud and corruption, with recommendations for disciplinary action against the official.
The SIU also recovered a total of R5 038 754 which was due to the department and saved the department R29 137 500 in losses. A total of 87 cases against officials were referred to the department for disciplinary action. Fourteen criminal cases were referred to the NPA, while 33 acknowledgement of debt agreements were obtained by the SIU, to the value of R 2 921 001.
INVESTIGATIONS THAT ARE STILL BEING UNDERTAKEN
The following investigations are still on-going;
1. Proclamation R.72 of 2009: North West Province Municipalities.
2. Proclamation R.21 of 2010: Department of Health: Gauteng Province.
3. Proclamation R.27 of 2010: South African Social Security Agency (SASSA).
4. Proclamation R.38 of 2010: Department of Public Works.
5. Proclamation R.42 of 2010 with extension: South African Police Service (SAPS).
6. Proclamation R.43 of 2010 with extension: Department of Public Works for the KwaZulu-Natal Province.
7. Proclamation R.62 of 2010: Tshwane Metropolitan Municipality (TMM): Gauteng Province.
8. Proclamation R.63 of 2010: Ekurhuleni Metropolitan Municipality (EMM): Gauteng Province.
9. Proclamation R.8 of 2011: National Department of Rural Development and Land Reform.
10. Proclamation R.33 of 2011: Midvaal Local Municipality: Gauteng Province.
11. Proclamation R.34 of 2011: The former Department of Roads and Transport: Eastern Cape Province.
12. Proclamation 58 of 2011: Kopanong Local Municipality: Free State Province.
13. Proclamation R.2 of 2012: Eskom Holdings Ltd.
14. Proclamation R.16 of 2012: Former Department of Local Government and Housing: Mpumalanga Province and its successor in title the Department of Cooperative Governance and Traditional Affairs: Mpumalanga Province in its Water for all project.
15. Proclamation R.21 of 2012: Limpopo Province Intervention.
16. Proclamation R.48 of 2012: State Information Technology Agency (Pty) Ltd ("SITA").
17. Proclamation R.53 of 2012: National Department of Rural Development and Land Reform and its agents.
18. Proclamation R.54 of 2012: Department of Water Affairs (formerly the Department of Water Affairs and Forestry).
19. Proclamation R.55 of 2012: The Guardians Fund components of the KwaZulu-Natal and Gauteng offices of the Master of the High Court of the Department of Justice and Constitutional Development.
20. Proclamation R.65 of 2012: Public Service Sector Education and Training Authority ("PSETA").
21. Proclamation R.59 of 2013: National Department of Public Works: Prestige Project situated at Nkandla, KwaZulu-Natal.
22. Proclamation R.5 of 2014: South African Post Office (SOC) Limited (SAPO).
23. Proclamation R.6 of 2014: National Department of Co-operative Governance and Traditional Affairs (COGTA).
24. Proclamation R.7 of 2014: Department of Rural Development and Land Reform (formerly known as the Department of Land Affairs) in its national department, its provincial departments, its trading entities and their respective agencies (herein referred to as the DRDLR) and the State Information Technology.
25. Proclamation R.8 of 2014: Bushbuckridge Local Municipality: Mpumalanga Province
26. Proclamation R.10 of 2014: Department of Communications.
27. Proclamation R.20 of 2014: USAASA (Universal Service and Access Agency of South Africa).
There have also been extensions to some proclamations. The following extensions have been granted:
1. Proclamation R.35 of 2010 extension: National Department of Housing.
2. Proclamation R.73 of 2011 extension: South African Police Service (SAPS).
3. Proclamation R.15 of 2012 extension: National Department of Housing.
4. Proclamation R.14 of 2012 extension: Department of Education: Mpumalanga Province.
5. Proclamation R.49 of 2012 extension: Department of Public Works for the KwaZulu-Natal Province.
Statement issued by Mac Maharaj, The Presidency, July 22 2014
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