The SIU probe revealed the irregular procurement contract for trucks, water tankers, and jet vacuum tankers.
As the country battles a deepening water crisis, the Special Investigating Unit has welcomed the arrest of nine people over an illegal R75 million water tanker tender in the Alfred Nzo District Municipality (ANDM) in the Eastern Cape.
These arrests follow referrals made by the SIU to the National Prosecuting Authority (NPA) after uncovering evidence of serious maladministration and corruption during its investigation.
SIU probe
The SIU probe revealed that the irregular procurement contract for trucks, water tankers, and jet vacuum tankers was awarded to Kwane Capital (Pty) without budget approval.
“The accused appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court on charges of fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act (MFMA),” SIU spokesperson Kaizer Kganyago said.
“The yellow fleet refers to six trucks, six sprinkler water tankers, and three jet vacuum tankers that were meant for water supply, sanitation, and infrastructure support in the municipality.”
The accused were granted bail of R10 000 each.
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Tender
Kganyago said the SIU investigation revealed that the ANDM paid R75 million to Kwane Capital for trucks, water tankers, and jet vacuum tankers without budget approval and in contravention of Regulation 32 of the Municipal Supply Chain Management Regulations.
“Kwane Capital misrepresented ownership of the vehicles, unlawfully used the name of Avis Fleet and induced the municipality into contracts that were invalid and unlawful.
“Fraudulent licensing and vehicle examination were also uncovered, with roadworthy certificates issued despite GPS data showing the vehicles never attended testing stations.
“The municipality suffered an actual or potential financial loss of R60.7 million due to overcharging and excessive profit margins. The SIU has instituted a civil action in the Special Tribunal to review and set aside the contract and to recover losses suffered by the municipality,” he said.
The Hawks’ Serious Corruption Investigation (SCI) and Serious Commercial Crime Investigation (SCCI), in collaboration with other law enforcement agencies, handcuffed the group aged between 43 and 73 years, including the two corporate entities from various localities, including areas outside the province, last week.
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