SIU to investigate six Buffalo City projects for maladministration and corruption - IOL
The Special Investigating Unit (SIU) will investigate alleged wrongdoing in several Buffalo City contracts and seek to recover any financial losses suffered by the State.
President Cyril Ramaphosa has authorised the Special Investigating Unit (SIU) to investigate six projects linked to the Buffalo City Metropolitan Municipality and its development agency over allegations of serious maladministration and corruption.
The investigation, authorised through Proclamation 350 of 2026, will examine procurement and contracting involving several projects, including the Mdantsane NU2 Swimming Pool and Water World projects.
The SIU will investigate conduct that took place between January 1, 2016, and September 18, 2026.
“The SIU is mandated to investigate the allegations, identify any financial losses suffered by the State or affected institutions, and, where appropriate, take steps to recover such losses,” SIU spokesperson Selby Makgotho said.
The proclamation covers the affairs of both the Buffalo City Metropolitan Municipality and the Buffalo City Metropolitan Development Agency (BCMDA).
The SIU will investigate procurement relating to the Mdantsane NU2 Swimming Pool Project, as well as the appointment of First New Generation Trading (Pty) Ltd for the demolition of existing walls.
It will also scrutinise the appointment of Lefito Trading, trading as Kuyasa Electrical Contractors, for the removal of the Donkin wall and installation of palisade fencing.
Consulting engineering services and the appointment of a main contractor for the Water World Project also fall within the scope of the investigation.
The SIU lists the Mdantsane NU2 Swimming Pool Project twice among the six projects covered by the proclamation.
According to the SIU, investigators will examine allegations of serious maladministration and improper or unlawful conduct by employees of the municipality and BCMDA.
The probe will also look into possible unlawful expenditure or appropriation of public money or property, as well as any intentional or negligent losses of public funds.
“The SIU will further investigate payments made in connection with the above matters where such payments were not fair, competitive, transparent, equitable or cost-effective, or were contrary to applicable legislation,” Makgotho said.
Ramaphosa has also amended Proclamation 181 of 2024, expanding an existing SIU investigation into tenders awarded by the Gauteng Provincial Department of Human Settlements.
The existing investigation covers procurement relating to 150 ablution and sanitation facilities at the Sicelo Shiceka informal settlement, Phase 1 and Evaton, as well as 180 walk-up units at Sicelo Shiceka Extension 5.
The amendment expands the investigation to include 100 ablution and sanitation facilities at Bekkersdal.
It also extends the period under investigation to include alleged unlawful and improper conduct that occurred between April 1, 2017 and September 18, 2026.
The SIU said any evidence pointing to criminal conduct uncovered during the investigations would be referred to the National Prosecuting Authority (NPA).
“In terms of the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer evidence of criminal conduct uncovered during its investigations to the National Prosecuting Authority (NPA) for consideration and further action,” Makgotho said.
The SIU is also empowered to institute civil proceedings in the High Court or Special Tribunal to recover financial losses or address wrongdoing linked to corruption, fraud or maladministration.
