Makana says it is preparing information and documentation required by the Special Investigating Unit (SIU), for a probe into the procurement and payment processes related to the awarding of certain tenders and contracts. The municipality was responding to a query from Talk of the Town following a presidential proclamation empowers the SIU to investigate allegations of serious maladministration, improper or unlawful conduct and unlawful appropriation or expenditure of public money or property. The proclamation has been welcomed by a range of Makhanda civil society stakeholders. Meanwhile, a group called the Dissolve Corruption Collective says the groundwork they did to help get a SIU investigation under way provides a template for probes into other public institutions, such as municipalities.
The proclamation, signed by President Cyril Ramaphosa on September 10, 2024 and published in the Government Gazette of October 18, notes the allegations made regarding the affairs of Makana and that on the basis the municipality may have suffered losses that could be recovered, civil proceedings should follow any investigations.
The proclamation instructs the SIU to investigate any alleged:
- Serious maladministration in connection with the affairs of the municipality;
- Improper or unlawful conduct by employees of the municipality;
- Unlawful appropriation or expenditure of public money or property;
- Unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing on State property;
- Intentional or negligent loss of public money or damage to public property;
The proclamation indicates that the SIU should investigate these with reference to certain sections of the Prevention and Combating of Corrupt Activities Act. It also says the SIU should investigate any alleged “unlawful or improper conduct by any person, which has caused or may cause serious harm to the interests of the public or any category thereof”.
The proclamation specifies that the investigations should cover the period January 1, 2019 to October 18, 2024. However, they should also include incidents outside that period that are relevant to the allegations, or which concern the same individuals, entities or contracts being investigated.
A schedule follows, listing specific tenders for goods and services, and relationships or practices flagged in the Management Reports of the Auditor General of 2019 and 2020.
The spotlight is on procurements and contracts that were allegedly done in a manner that was not fair, competitive, transparent, equitable or cost effective. The proclamation says procurement done that contravened the applicable legislation or was contrary to Treasury guidelines or municipal policies should be investigated.
The proclamation refers to specific contracts and appointments. Most are infrastructure related; however, the provision of internet and email hosting services and the operation of the municipal landfill are also to come under scrutiny.
In addition, also for investigation is alleged “Serious maladministration in the affairs of the municipality in relation to the payment of standby allowances and overtime benefits to employees, contrary to [municipal policy]”.
On behalf of Makana Municipality, communications officer Anele Mjekula responded to Talk of the Town’s request for comment as follows: “I can confirm that the office of the Municipal Manager has received official communication from the SIU requesting documents for purposes of assessing the allegations of maladministration and collusion reported to it by various whistleblowers. According to the SIU, they have received requests from whistleblowers to investigate the procurement and payment processes related to the awarding of certain tenders/contracts. The municipality is complying with the request by preparing all the information and documents required for submission to the SIU.”
In a joint statement issued yesterday, 17 Makhanda stakeholders, including educational institutions, citizen rights, monitoring and welfare organisations, welcomed the proclamation.
“As members of civil society, residents, and organisations of Makhanda, we welcome and support the SIU’s investigation,” the stakeholders said. “This Proclamation can be linked to the sustained efforts and activism of residents and organisations that have long called for meaningful intervention in Makana through various forums, structures, and campaigns. This investigation is crucial to promoting transparency, accountability, and good governance in our community. We encourage all organisations and members of the public to cooperate fully with the SIU as may be required.”
The stakeholders group, which includes Rhodes University, said their interest was in revitalising the municipality and removing any obstacles to positive development.
“We believe fairness, integrity, and accountability are essential for advancement, and this investigation is a chance to address past irregularities and rebuild public trust in our institutions,” they said.
A group called the Dissolve Corruption Collective said in its statement that the investigation had arisen out of a citizens’ initiative to gather evidence for potential prosecution and cost recovery. The collective said its primary evidence gathering had been motivated by the failure of the Auditor General to act on clear wrongdoing in the municipality. The collective also cited the assassination of Makana Parks manager Jeff Budaza on May 25, 2022 and the hijacking of Makana Citizens Front council seats as spurring them to action.
Budaza was a key whistleblower and witness in a ghost workers case. He also had a lengthy dossier of other alleged wrongdoings, which he shared with various constituencies.
The collective said: “We created a strategy to take Budaza’s legacy forward without endangering any more whistleblowers. We made a strategic decision to exclude MCF leadership from our approach so they would not become a target… We also aimed to protect our sources in two ways: we targeted a broad spectrum of tenders and contracts; the proclamation does not come close to covering the evidence we collected. We also only relied on documents in the public domain so they could not be traced back to a whistleblower.
“We believe that this approach is a template for others to follow; there is a lot of information in the public domain, such as calls for tenders, council agendas and so on. It is helpful to have whistleblowers to point to the places to search but it is not necessary to expose them.”
The collective said they were very disappointed that the Auditor General had not used the new power it had under the amended Public Audit Act of 2018.
“With over 90 points in each Makana audit disclaimer over multiple years, why did the AG not refer a single thing to law enforcement? Why has no Certificate of Debt been issued to recover fruitless, wasteful or irregular expenditure in Makana?” they asked.
READ THE PROCLAMATION HERE
GG 51415 dd 18 Oct 2024 – Proc 207 of 2024 – Makana Local Municipality
READ THE MAKHANDA STAKEHOLDERS’ STATEMENT HERE
Final Multistakeholder Statement MLM SIU Investigation 23.10
