SIU saves billions during 2023/24 financial year

15 October 2024

The Special Investigating Unit (SIU) saved the South African government approximately R8 billion in the 2023/24 financial year.

These results stem from effective investigations, speedy litigation, and recovery processes.

The amount includes a record recovery of funds in actual cash amounting to R2.28 billion, marking the highest recovery in the SIU’s 27-year history. In addition to these recoveries, the SIU prevented a further R2.32 billion in potential state losses and secured cash to be recovered from the acknowledgement of debt and admission of liability agreements to the value of R1.6 billion. In our pursuit of rectifying irregular administrative decisions, the SIU successfully set aside contracts worth over R2.13 billion through the Special Tribunal and the High Court of South Africa. 

This legal action ensures that public funds are recovered, not squandered, and redirected to serve their intended public purposes. This achievement underscores the SIU's ongoing commitment to fighting corruption, maladministration, malpractice and safeguarding state assets.

Furthermore, the SIU received an unqualified audit outcome for its financial performance from the Auditor-General of South Africa.

Addressing members of the Portfolio Committee on Justice and Constitutional Development from the Parliament of South Africa on the SIU's 2023/24 Annual Report, SIU Head Advocate Andy Mothibi highlighted the significant role of investigations in entities such as Transnet, Eskom and the National Student Financial Aid Scheme (NSFAS) as the most significant contributors to these recoveries. 

The Transnet recoveries amounted to R710 104 826,03, R500 000 000 from Eskom, and the NSFAS investigation totalled R191 027 281,50 by the end of the 2023/24 financial year. He also emphasised the success of the Medico-Legal investigation, which accounted for R1.98 billion of the R2.32 billion in prevented losses, showcasing the effectiveness of the SIU’s work in protecting public funds.

In terms of matters, contract and/or administrative decisions and or actions set aside or deemed invalid, contracts emanating from the Eskom investigation contributed the most, with the contract value of R1 206 984 667,56.

Progress in Investigations and Legal Actions

Investigations remain the core of the SIU’s business. During the 2023/24 period, the SIU closed 1,919 investigations under published proclamations and submitted 26 comprehensive reports to the President outlining the outcomes of investigations. These reports include, amongst others, the investigations about the National Lotteries Commission, PRASA, the Masters' Office, and NSFAS. These reports reflect the SIU's dedication to transparency and accountability in the fight against corruption.

The SIU has referred evidence for the institution or defence/opposition of civil proceedings worth R4.8 billion. This includes, amongst others, matters regarding R2 billion from Eskom, R834 million from Transnet, R29.1 million from eThekwini Metropolitan Municipality and R48.4 million from the City of Cape Town.

Expanding Capacity with Lifestyle Audits

In our continued effort to enhance accountability and prevention of corruption, the SIU has expanded its capacity through secondment agreements to conduct lifestyle audits within government and state-owned entities. Over the course of the year, lifestyle audits were conducted at PRASA, the Gauteng Office of the Premier, and the Free State Department of Community Safety, Roads, and Transport.

Collaborating with Law Enforcement

The SIU recognises the importance of collaboration in the fight against corruption. In line with the SIU Act, 583 criminal referrals were made to the National Prosecuting Authority (NPA), ensuring accountability prosecution of officials, private entities and individuals involved in corrupt activities. These referrals reflect the Unit’s ongoing efforts to ensure consequences for those who engage in corruption, maladministration and fraud.

To ensure accountability for government officials involved in wrongdoing, SIU referred 297 officials to respective state institutions for disciplinary action.

As the SIU concludes the final year of its five-year turnaround strategy, we remain resolute in our mission to combat corruption, fraud, maladministration and malpractice in the public sector. The next five-year strategy will build on the successes of the previous strategy and focus on developing and implementing the National Corruption Prevention Strategy and implementing best practices, including cyber and data analytics, and further business process digitisation programmes.

The SIU continues to safeguard the public purse, ensuring that state resources are protected and used for the benefit of all South Africans.

We call on All South Africans to be involved in the fight against corruption.

Issued by Kaizer Kganyago, Spokesperson: Special Investigating Unit, 15 October 2024