President Ramaphosa Authorizes SIU to Probe Corruption in Multiple Institutions

The SIU will investigate activities between 1 January 2022 and 31 January 2025, including any relevant prior or subsequent misconduct.

President Cyril Ramaphosa has signed four new proclamations authorizing the Special Investigating Unit (SIU) to probe allegations of corruption, fraud, and maladministration at the Ithala Development Finance Corporation, the Greater Kokstad Local Municipality, the Lepelle-Nkumpi Local Municipality, and Greater North Transport. These investigations aim to uncover financial mismanagement, irregular contracts, and any unlawful conduct that may have led to financial losses for the government.

Ithala Development Finance Corporation

Proclamation 243 of 2025 empowers the SIU to investigate allegations of serious maladministration at the Ithala Development Finance Corporation in KwaZulu-Natal, specifically focusing on the tendering process for the supply, implementation, and maintenance of an integrated banking solution.

The SIU will examine:

• Whether payments made under the contract complied with National Treasury guidelines.
• Whether these payments were irregular, wasteful, or resulted in financial losses.
• Any unlawful conduct by Ithala officials leading to improper benefits.
• Potential fraudulent activities and subsequent financial damages.

The probe will cover incidents from 1 January 2017 to 31 January 2025, as well as any relevant events before or after these dates.

Greater Kokstad Local Municipality

Proclamation 244 of 2025 mandates the SIU to investigate irregularities in two key tenders at the Greater Kokstad Local Municipality in KwaZulu-Natal:

1. Supply and renewal of software licenses for three years.
2. Implementation of a customer care and IT service desk solution.

The investigation will determine:

• If the procurement and contracting process adhered to fairness, competitiveness, transparency, equity, and cost-effectiveness.
• Any violations of applicable legislation or Treasury regulations.
• Unauthorized, irregular, or wasteful expenditures by the municipality.
• Any unlawful or improper conduct by municipal officials, suppliers, or service providers.

The SIU will investigate activities between 1 January 2022 and 31 January 2025, including any relevant prior or subsequent misconduct.

Lepelle-Nkumpi Local Municipality

Proclamation 245 of 2025 allows the SIU to investigate serious maladministration in the Limpopo-based municipality regarding six contracts:

1. Professional services for the closure and rehabilitation of an old dumping site in Zone A.
2. Electrification projects in Rakgoatha, Mapatjakeng, and Motserereng villages.
3. Upgrading the access road from Units S to Q.
4. Construction of the Madisha Ditoro small access bridge and stormwater drains in Rakgoatha.
5. Tarring 9 km of internal streets in Rockville and Unit S, Lebowakgomo.
6. Refurbishment of the Lebowakgomo Civic Centre.

The SIU will probe potential irregularities in awarding these contracts, investigating any unlawful conduct by employees, financial losses, and the possible involvement of third parties in corrupt activities.

Greater North Transport (GNT)

Proclamation 246 of 2025 allows the SIU to probe corruption and maladministration at Greater North Transport in Limpopo Province. Investigations will focus on eight procurement contracts suspected of corruption and six contracts linked to maladministration.

The contracts under scrutiny include:

• Procurement of 150 buses from Mercedes-Benz South Africa.
• Procurement of 87 80-seater buses from MAN Truck and Bus South Africa.
• Appointment of Raletjena Technologies and Trading (Pty) Ltd.
• Extension of a contract with Fidelity Cash Management.
• Appointment of Scania South Africa for maintenance services.
• Procurement of legal services and a fleet management system.

Additionally, maladministration investigations will assess:

• Fruitless and wasteful expenditure due to interest payments to Africa Oil (Pty) Ltd.
• Settlement agreements with Umvuzo Energy (Pty) Ltd.
• Mismanagement of diesel supplies.
• Failure to collect outstanding debts owed to GNT.
• Questionable agreements with emerging bus operators.

The probe covers alleged misconduct between 1 January 2002 and 31 January 2025, including any linked activities before or after these dates.

SIU's Mandate and Legal Authority

Beyond investigating corruption, fraud, and maladministration, the SIU is committed to identifying systemic failures and recommending measures to prevent future financial losses.

In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU has the authority to:

• Refer any uncovered criminal conduct to the National Prosecuting Authority (NPA) for prosecution.
• Initiate civil action in the High Court or Special Tribunal to recover losses resulting from corruption or maladministration.

Government’s Stance on Corruption

These investigations are part of President Ramaphosa’s ongoing commitment to fighting corruption and restoring integrity in public service delivery. The outcomes of these probes could lead to criminal charges, disciplinary actions, and financial recovery efforts.

South Africans are encouraged to report any instances of corruption or maladministration to the relevant authorities to ensure accountability and good governance.