SIU thwarts R33 million claim and recovers R67 million from Kroucamp Plumbers
Image: File
The Special Investigating Unit (SIU) has secured a victory for the state, recovering R67 million from Kroucamp Plumbers (Pty) Ltd after the Special Tribunal reviewed and set aside unlawful contracts awarded by the Department of Public Works and Infrastructure.
SIU spokesperson Kaizer Kganyago says the Tribunal's ruling not only recovers public funds but also prevents a potential R33 million loss following the dismissal of a counterclaim brought by Kroucamp Plumbers against the department.
The Tribunal declared contracts worth R67 million, awarded between 2015 and 2019 for vacuum pumping of septic tanks and emergency sewage blockage interventions, invalid and unlawful.
As a result, the service provider has been ordered to refund all payments received from the department. The financial recovery includes R46 613 873.26 from contracts between 2015 and 2017 and R20 389 052.70 from tenders between 2017 and 2019.
The SIU investigation revealed a web of corruption involving falsified bidding documents, undisclosed conflicts of interest, and payments to officials who manipulated the tendering process.
"The SIU investigation revealed that Kroucamp Plumbers misrepresented its Broad-Based Black Economic Empowerment (B-BBEE) status, submitted incomplete bidding information, and colluded with departmental officials to secure contracts totalling millions of rand," Kganyago said.
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The Tribunal further found that Mr. Johannes Jacobus Kroucamp, the director of Kroucamp Plumbers, had abused the corporate structure for personal gain, ultimately jeopardising the interests of the state.
Judge D. Makhoba highlighted the seriousness of the misconduct, stating that the tenders "breached constitutional procurement regulations and eroded public trust."
As part of the ruling, both contracts were annulled, and Kroucamp Plumbers' juristic personality was revoked, making the company liable for repaying the state. This decision opens the possibility for Mr. Kroucamp to be held personally responsible for the company's debts owed to the state.
The investigation was conducted under Proclamation R20 of 2018, which empowered the SIU to probe allegations of maladministration, improper conduct, and corruption within the Department of Public Works and Infrastructure's tender processes.
"The SIU is also empowered to institute civil action in the High Court or a Special Tribunal to address any wrongdoing uncovered during investigations related to corruption, fraud, or maladministration," Kganyago said.
"In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action."
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