The Special Investigating Unit (SIU) has instituted civil proceedings in the Special Tribunal to set aside and review a R215-million IT tender awarded by the Moretele municipality.
This after the arrest of the former municipal manager, Theletsi Nkhumise, on Friday for allegedly wrongfully awarding the tender to Flame IT Strategy to render those services.
SIU spokesman Kaizer Kganyago said the corruption-busting unit investigated the tender following a proclamation by President Cyril Ramaphosa.
Kganyago added that the R215-million was inherited by the Moretele municipality from the Madibeng local municipality.
“The arrest of Nkhumise follows an investigation conducted by the SIU, which revealed that the Moretele municipality increased the scope of work with two addendums to the original contract without following processes governing municipal procurement of goods and services.
“Furthermore, the SIU investigation revealed that the price from that of the original contract between Madibeng municipality and Flame IT is definitely not in sync with the pricing between Moretele Municipality and Flame IT. Madibeng paid Flame IT approximately R64-million for a similar service,” Kganyago said.
He said if successful, the proceedings instituted in the Special Tribunal will claw back some of the monies lost by the local municipality through the tender.
“The SIU has instituted a civil action in the Special Tribunal to review and set aside the contract. This will pave the way for the state’s only anti-corruption, forensic investigation and civil litigation agency to recover financial losses suffered by the municipality due to negligence and corruption.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU referred evidence pointing to a criminal action to the National Prosecuting Authority for further action,” Kganyago said.