SIU Recovers R67m in Plumbing Contract Scandal, Exposes Widespread Graft

The Tribunal’s ruling declared these contracts “invalid and unlawful”, ordering Kroucamp Plumbers to refund the R67 million it received from the department.

July 2025 In a major legal and anti-corruption victory, the Special Investigating Unit (SIU) has secured a R67 million recovery order against Kroucamp Plumbers, a contractor linked to a multi-year corruption scheme within the Department of Public Works and Infrastructure (DPWI). The Special Tribunal ruled in favour of the SIU, annulling contracts issued between 2015 and 2019, and preventing a further R33 million in potential losses to the State.

This decisive ruling follows a comprehensive investigation by the SIU into fraudulent procurement practices, including misrepresentation, collusion, falsified B-BBEE credentials, and conflicts of interest involving departmental officials.

Tribunal Declares Contracts Invalid and Unlawful

The Special Tribunal, led by Judge David Makhoba, reviewed and overturned several contracts awarded to Kroucamp Plumbers, which were initially intended for:

• Vacuum pumping of septic tanks, and

• Emergency sewage blockage interventions.

The Tribunal’s ruling declared these contracts “invalid and unlawful”, ordering Kroucamp Plumbers to refund the R67 million it received from the department. The total includes:

• R46.6 million for contracts awarded between 2015–2017, and

• R20 million for contracts awarded during 2017–2019.

Additionally, the Tribunal dismissed a R33 million counterclaim filed by Kroucamp Plumbers against the department, a move that the SIU strongly opposed and successfully contested in court.

Key Findings: Fraud, Misrepresentation, and Collusion

The SIU's investigation, conducted under Proclamation R20 of 2018, revealed disturbing levels of procurement fraud and systemic abuse of government contracting procedures. Notably:

• Kroucamp Plumbers falsified B-BBEE credentials to appear compliant with transformation legislation.

• The company submitted incomplete and deceptive bidding documents.

• It engaged in collusion with DPWI officials, who manipulated tender processes for financial kickbacks and personal benefit.

• Payments were made to government employees who facilitated the awarding of tenders without proper oversight or due diligence.

The SIU further uncovered that the company’s director, Johannes Jacobus Kroucamp, abused corporate structures for personal gain. This conduct resulted in substantial losses to the State and eroded public trust in government procurement systems.

Severe Legal Consequences and Accountability

In a rare and stern decision, the Tribunal:

• Revoked the juristic personality of Kroucamp Plumbers, effectively dissolving the company’s legal status.

• Ruled that Mr Kroucamp may be held personally liable for the company’s financial obligations to the State.

“These tenders breached constitutional procurement regulations and severely damaged public confidence in our systems,” said Judge Makhoba.

The Tribunal’s ruling represents not only financial restitution but a powerful precedent for holding individuals accountable in cases where companies are used as vehicles for corruption.

SIU’s Expanding Role in Fighting Maladministration

The SIU, established under the Special Investigating Units and Special Tribunals Act No. 74 of 1996, is empowered to:

• Investigate serious allegations of maladministration, fraud, and corruption within state institutions.

• Institute civil action in the High Court or a Special Tribunal to recover public funds.

• Refer criminal matters uncovered during investigations to the National Prosecuting Authority (NPA).

The success of this case highlights the effectiveness of the Special Tribunal model, which allows the SIU to pursue expedited civil litigation against corrupt contractors and officials, bypassing some of the traditional bottlenecks in South Africa’s court system.

A Step Forward for Clean Governance

This ruling sends a strong message to both the public and private sectors that corruption in public procurement will not go unpunished. The case is also a clear indication of the SIU’s strategic shift towards asset recovery and personal accountability.

By holding both the company and its director liable, the SIU is setting a benchmark for how state capture and corruption at operational levels should be addressed—not just through criminal referrals, but through immediate financial recourse and institutional reform.

Broader Implications for Procurement Reform

As South Africa continues to grapple with the legacy of state capture, this judgment could serve as a blueprint for reforming procurement practices, particularly in sectors vulnerable to abuse such as infrastructure, health, and education.

The DPWI, now working under a renewed anti-corruption mandate, is expected to implement stricter procurement controls, enhanced vetting processes, and training for supply chain officials to ensure compliance with the Public Finance Management Act (PFMA) and Treasury regulations.

 Justice and Prevention Intertwined

While the R67 million recovery represents a tangible financial victory, the long-term success of the SIU’s work lies in the prevention of future abuses, stronger institutional controls, and the cultivation of a culture of accountability.

As more investigations unfold, the public can expect further efforts from the SIU to restore integrity to the public procurement space—ensuring that every rand allocated for services and development reaches its intended purpose.