The Special Investigating Unit has had 14 water projects under scrutiny since 2012.
The Special Investigating Unit (SIU) is leading the compliance fight to solve South Africa’s water crisis.
A newly launched Water Sector Anti-Corruption Forum (WSACF) held its first meeting to celebrate the SIU’s work in the water sector.
The forum is a part of a national anti-corruption strategy that focuses on protecting public projects vulnerable to corruption.
New anti-corruption forum
As South Africa’s foremost anti-corruption arm, the body is obligated to lead the forum, which falls under a greater G20 anti-corruption umbrella.
“The WSACF is a strategic intervention aimed at developing tailored solutions to address corruption risks in the water sector,” stated SIU spokesperson Kaizer Kganyago.
This week, the SIU announced the collective outcomes of almost 13 years of investigations into the country’s water projects.
The SIU has investigated 13 water projects since 2012 and has one outstanding proclamation that still needs to be executed.
“With eight investigations completed and five still active, the need for a coordinated anti-corruption response in water management has never been clearer,” Kganyago added.
SIU successes
From the investigations, the SIU has recovered R569 million in undue gains, while R264 million in cash and asset recoveries are still pending
Potential losses prevented are listed at R717 million, as the SIU boasts that contracts worth R1.1 billion have been set aside.
The value of contracts under the microscope has been massive, with R6.2 billion worth of contracts signed since 2012 flagged for irregular or fraudulent actions.
Consequences secured by the SIU include 270 matters being referred to the National Prosecuting Authority (NPA), as well as 140 referrals for disciplinary or administrative actions commissioned against business executives and government officials.
Affected projects
The Umngeni-Uthukela water project is responsible for 61 of those NPA referrals, with the matters currently with the Hawks.
The 61 cases are tied to contracts worth R465 million for work ranging from the installation of pipelines to the replacement of filter slabs.
A further 38 NPA referrals for fraud and forgery were tied to the Amatola Water Board, where R230 million was allocated for drought relief.
Large private sector players linked to SIU investigations include four contracts with construction giants EOH, which has since repaid R160 million.
“EOH accepted liability without prejudice for R178 million. The repayment arrangement was a lump sum of R65 million, and a balance split into 36 monthly installments of R3.5 million,” the SIU stated.
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