Latest news with #SpecialInvestigatingUnit
TimesLIVE
3 days ago
- Business
- TimesLIVE
Special Tribunal nullifies two Mpumalanga PPE contracts
The Special Tribunal has ruled that two personal protective equipment (PPE) contracts awarded by the Mpumalanga health department to Vitae Zoe to the combined value of R9.1m were unlawful and invalid. These contracts were for the supply and delivery of 3,000 infrared thermometers in April 2020 and an additional 1,000 devices in May 2020. The tribunal set aside the contracts after an application made by the Special Investigating Unit (SIU). The tribunal, in its order dated May 5, also directed Vita Zoe to submit audited financial statements for the 2020/2021 financial year to the SIU and the tribunal registrar within 30 days of the order to determine payments received by Vitae Zoe under the two contracts. Vitae Zoe had to propose a repayment plan within 15 days of a formal demand by the SIU. 'The SIU has received Vitae Zoe's financial statement and is determining the amount Vitae Zoe must repay,' SIU spokesperson Kaizer Kganyago said.
The Citizen
4 days ago
- Business
- The Citizen
SIU recovers R6 billion through investigations but remains underfunded
The SIU clawed back R6.6 billion over the past six years while maintaining operational costs of R5.2 billion. The portfolio committee on justice and constitutional development has expressed serious concerns about the severe underfunding plaguing two of South Africa's most crucial law enforcement and legal assistance entities. It warned that budget constraints are undermining their ability to serve the public effectively. During Tuesday's parliamentary session, committee members received troubling briefings from both the Special Investigating Unit and Legal Aid SA regarding their annual performance plans and budgets for the 2025-26 financial year, revealing a funding crisis that threatens the very foundations of these institutions' operations. SIU faces mounting pressure despite strong recovery record The Special Investigating Unit (SIU) has been operating under increasingly strained circumstances, with demand for its anti-corruption services skyrocketing while resources remain stagnant. The committee, during the meeting, heard that over the past nine years, proclamations requiring SIU intervention surged by 52%. These figures are contradictory to the unit's staff complement, which grew by a mere 6.5% during the same period. However, the committee's media officer, Rajaa Azzakani said despite these constraints, the SIU has demonstrated effectiveness in recovering funds for the state. The unit informed the committee that it had clawed back R6.6 billion in the past six years while maintaining operational costs of R5.2 billion. However, this success story is overshadowed by declining grant funding that threatens future operations. 'SIU's grant income in 2025-26 is R459 860 000, with R481 157 000 estimated for 2026-27, less than R489 839 000 it received in 2023-24, despite the SIU having grown and recovered more funds for the government,' said Azzakani. This reduction comes at a time when the SIU has expanded its operations and increased its recovery rates for government coffers. Committee Chairperson Xola Nqola acknowledged the critical nature of the situation, stating: 'Both have suffered from underfunding or budget cuts. 'The committee will engage with all necessary to see how we better finance entities that are doing excellent and important work, but whose work is being hampered due to funding constraints.' ALSO READ: SIU blocks R3.3 million pension payout of former Gauteng HOD Outstanding debts hamper operations The SIU's financial challenges are compounded by a staggering R1.2 billion in outstanding invoices as of March 2025. Provincial government departments account for the largest portion of this debt, owing R358.3 million or 30% of the total. 'Meanwhile, public entities owed the SIU 29% or R358 200 000, while national government departments owe 23% or R275 817 000,' Azzakani added. To address this debt crisis, the SIU has launched Project Khokhela, a targeted debt recovery initiative, 'with the aim of instituting a targeted approach to debt recovery'. The unit issued formal demand letters to the top 20 state institutions with the longest outstanding debts, with ministers' offices assisting in the distribution process. It further stated that the SIU expressed optimism that settlements will be reached in the coming months. Expansion plans threatened by resource constraints The SIU's ambitious plans to expand its workforce to meet growing demands face significant obstacles due to funding limitations. The unit estimated that it needs at least 1 000 officials to handle incoming work from increased proclamations, with the Estimates of National Expenditure budgeting for 1,100 officials. However, without an additional R250 million annually, the SIU lacks the resources to fund this essential growth. The unit is also developing a permanent structure for lifestyle audits, including the procurement of comprehensive analytical tools aimed at enhancing fraud and corruption prevention and detection capabilities. This initiative represents a shift toward making lifestyle audits a cornerstone of risk management strategies. ALSO READ: 'War on Leaks' programme: SIU reveals R2.2bn budget balloons to over R4bn Funding model requires urgent overhaul SIU officials emphasised that the organisation's financial stability hinges on a complete revision of its funding model to accommodate the increasing number of proclamations. Securing additional funding from the national treasury and amending the SIU Act in consultation with the Minister of Finance have been identified as crucial steps for ensuring long-term sustainability. Nqola supported this position, declaring: 'To strengthen the SIU, we must solidify the SIU Act. We need to establish with the department how far is this process.' Legal Aid SA struggles with severe budget cuts Legal Aid SA faces its own funding nightmare, grappling with a devastating R239 million budget reduction for the 2025/26 financial year. The organisation's operational flexibility is severely limited, as salaries and related costs consume 80 percent of the budget, leaving cost containment measures to target only the remaining 20% allocated to operations. The organisation has been forced to implement staff rationalisation plans, including position freezes and delayed recruitment, to manage employee costs. However, these measures directly impact service delivery to clients and reduce operational capacity, ultimately limiting the number of people the entity can assist. ALSO READ: SIU and Transnet freeze R20 million in luxury assets amid fraud probe Rental costs add to financial pressure Legal Aid SA's financial woes are exacerbated by office accommodation leasing costs, where rental escalation rates consistently outpace the modest increases in budget allocations. This creates an unsustainable situation where fixed costs consume an ever-growing portion of the available budget. According to Legal Aid SA representatives, despite ongoing cost-cutting efforts, opportunities for additional savings have been largely exhausted. The organisation stressed the importance of aligning organisational targets with available resources to ensure it can meet service demands without overextending its capacity. Justice committee chair commits to advocacy Nqola emphasised the committee's recognition of Legal Aid SA's vital role in ensuring access to justice for vulnerable populations. 'Therefore, the committee should do everything in its power to ensure that they are better funded, as it speaks directly to the services they are able to render to those who cannot afford to pay for legal services,' he stated. WATCH: Justice Committee briefed by Legal Aid and SIU READ NEXT: Lottery corruption: SIU granted order against pension of former NLC official
TimesLIVE
6 days ago
- Politics
- TimesLIVE
Special Tribunal interdicts payment of pension fund to former NLC manager
The Special Investigating Unit (SIU) has secured an interim interdict preventing a former senior manager at the National Lotteries Commission (NLC) from withdrawing his pension benefits pending the outcome of ongoing litigation. The interdict, granted by the Special Tribunal on June 10, bars Sanele Dlamini from accessing his pension benefits until the SIU's main case, a civil recovery action tied to the misallocation of R6m in NLC grant funds, is concluded. The tribunal directed Liberty's Corporate Selection Umbrella Retirement Fund to assess and disclose the value of Dlamini's pension within 60 days. 'This preservation is intended to ensure that funds remain available for potential recovery should the SIU succeed in its claim', SIU spokesperson Kaizer Kganyago said. Dlamini, who held several senior positions at the NLC, including provincial manager for KwaZulu-Natal, senior manager: grant operations and acting COO, was found guilty on four of six disciplinary charges related to misconduct during his tenure. 'The charges included approving falsified progress reports, as well as gross negligence and dereliction of duty. His dismissal was finalised on October 4 2024 after the disciplinary process.' Kganyago said the SIU's investigation revealed that the NLC-funded project — a sports complex — was never initiated, and supporting documents, including progress reports and financial statements, were falsified. Dlamini, who facilitated the irregular disbursement of R3m to the Motheo Sports and Entertainment Foundation, cosigned the fraudulent progress report without verifying the site or documentation, enabling the unlawful payout. Kganyago said the SIU pursued a preservation order to limit the risk of a 'hollow judgment' if funds were released, noting concerns that Dlamini might lack sufficient assets to satisfy future claims.
IOL News
19-06-2025
- Business
- IOL News
Chieta welcomes SIU investigation into discretionary grant funding
The Special Investigating Unit is probing fraud, corruption, irregularities, malpractices or maladministration at the Chemical Industries Education and Training Authority. Image: Supplied The Chemical Industries Education and Training Authority (Chieta) is taking credit for the Special Investigating Unit's (SIU's) probe into its affairs and the disbursement of millions of rand in discretionary grant funding. The SIU investigation was authorised by President Cyril Ramaphosa and is expected to zoom in on the allocation of discretionary grant funding to entities in which Chieta employees or officials may have had undisclosed or unauthorised interests and the extent of any benefit derived by the employees or officials. Chieta, whose annual budget is over R735 million for 2025/26, is expected to disburse R446m in discretionary grants in the current financial year. It has welcomed the presidential proclamation authorising the SIU to investigate certain historical matters related to the entity. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ According to Chieta, the probe is the direct result of a proactive step it took. 'In 2019, in line with our commitment to ethical governance and accountability, Chieta commissioned an independent forensic investigation into concerns related to past procurement processes,' the sector education and training authority explained. It added that this included the procurement of information technology and audit services. 'The organisation subsequently submitted the findings to the SIU and, in 2021, opened a criminal case involving a former employee, with a board directive to recover misappropriated funds,' the entity said. Chieta indicated that this demonstrated its values in action, accountability, transparency, and respect for its public mandate. 'Our strong governance culture has since been affirmed through consistent clean audits and a 100% performance rating from the Auditor-General. 'We wish to assure stakeholders and the public that the investigation does not relate to current leadership or programmes,' stated Chieta. The authority also gave assurances that its work, including the national rollout of Smart Skills Centres, will continue uninterrupted and aligned with its vision for inclusive skills development. The SIU will also probe any losses or actual or potential prejudice suffered by Chieta or the State as a result of such fraud, corruption, irregularities, malpractices or maladministration, including the causes of such fraud, corruption, irregularities, malpractices or maladministration. Additionally, the corruption-busting unit will look into the procurement of, or contracting for information, and communications technology services and auditing services by or on behalf of Chieta and payments made.
News24
18-06-2025
- Business
- News24
Lesufi details progress on lifestyle audits, hijacked buildings and the battle to clean up Gauteng
Gauteng Government Gauteng is the only province to audit all HODs and CEOs, with only two reports still under review according to Lesufi Crime Prevention Wardens, known as Amapanyapanya, support law enforcement in reclaiming crime-prone areas. Lesufi says lifestyle audits help detect fraud, prevent corruption, and build public trust. Premier Panyaza Lesufi faced tough questions in the Gauteng legislature about corruption and crime but remained calm and confident as he laid out the province's progress. From lifestyle audits for top officials to efforts to tackle hijacked buildings in Johannesburg, Lesufi assured members that the government is taking real steps to promote accountability and improve safety. Nomathemba Mokgethi of the ANC posed a hard-hitting question to Premier Lesufi: With reports indicating that 37% of Gauteng's senior officials had failed lifestyle audits, what action would be taken? Furthermore, did the audits reveal who posed the greatest risk among CEOs, heads of departments (HODs) and supply chain managers – and how exactly do these audits help in promoting ethical governance? Lesufi clarified that Gauteng is leading the way nationally, being 'the only province to have conducted lifestyle audits for all HODs and CEOs using state institutions.' 'All HODs and CEOs subjected themselves to the process,' Lesufi said, noting that only four reports flagged issues needing further scrutiny. Two of those cases remain under review by the Special Investigating Unit, and the premier expects finalisation by the end of the quarter. He refuted the 37% failure figure, suggesting that this information was outdated and misleading. Regarding risk profiling, Lesufi revealed that the province has now expanded the audit process to include those in supply chain management (SCM), acknowledging that this function often sits at the centre of procurement controversies. We're now in the middle of lifestyle audits for SCM officials, and once complete, we will compare them with those of HODs. Panyaza Lesufi On the importance of these audits, Lesufi listed a range of benefits, from identifying unexplained wealth and potential conflicts of interest to preventing fraud and strengthening internal controls. 'This isn't just about compliance, it's about fostering a culture of ethical leadership and accountability in public service,' he said, praising the province's Anti-Corruption and Ethics Council for its role in the process. He assured that once the SCM audit concludes, those results too will be made public. CRIME AND HIJACKED BUILDINGS Thabang Nkani, MPL from the Umkhonto weSizwe Party shifted the debate to inner-city crime. He pressed Lesufi on the role of crime prevention wardens (CPWs), colloquially known as Amapanyapanya, in reclaiming hijacked buildings. 'These properties are now crime dens, drug trafficking, extortion, human trafficking, and violent crime are rife. What measurable progress have CPWs made, and how are they being held accountable?' Nkani asked. Lesufi outlined a coordinated approach: The SA Police Service works closely with metros, district municipalities, and the department of social development. A comprehensive plan to tackle hijacked buildings is already in place. Panyaza Lesufi He explained that the police can only intervene once a criminal case is opened—either by the property owner or local authorities. The CPWs, meanwhile, provide operational support, visibility, and manpower during joint operations led by law enforcement. Addressing professionalisation and oversight, Lesufi said the Gauteng department of community safety has already implemented mechanisms including: Oversight for CPWs An internal affairs unit; Targeted oversight initiatives; A culture of proactive accountability; and Alignment with SAPS operational standards. When it comes to formalising CPW employment, Lesufi confirmed that the process is guided by the Public Service Act of 1994 and Public Service Regulations of 2016. Employment equity will also be a key consideration. Finally, he assured that the CPW programme is sustainable, with funding secured through the provincial equitable share over the Medium-Term Framework.
