The Special Investigating Unit (SIU) has welcomed the freezing of a Greater Kokstad Local Municipality official’s pension fund following his alleged involvement in a R5.2 million fraudulent information technology (IT) tender.
The Special Tribunal granted the order after an SIU investigation into the matter found that municipal IT manager Yaw Owusu-Boakye was the owner of an IT company, Obytech Solutions, which was awarded the tender.
“The SIU investigation found that Owusu-Boakye allegedly manipulated the procurement process to secure the appointment of his company through fraudulent misrepresentations in its bid documents.
“The municipality made three payments to Obytech Solutions in respect of the software license renewal contract, including R1,227,875.55 on 5 March 2023; R2,815,652.74 on 26 July 2023; and a further R1,227,875.55 on 24 January 2025. The payments totalled R5,271,403.84,” the SIU said in a statement.
Furthermore, the unit’s investigation found that the municipality had “little or no value for money from the services provided by Obytech Solutions”.
“The investigation identified significant non-delivery under the contract, valued at R3,465,835, with proceeds allegedly used to fund personal expenses and lifestyle. He resigned in June 2025 after the SIU investigation began.
“On 31 March 2026, the SIU launched an application before the Tribunal seeking to review and set aside the…municipality’s decision to appoint Obytech Solutions to provide the three-year software license renewal services. The SIU is also seeking an order directing Obytech Solutions to repay the profits derived from the tender,” the statement read.
The corruption-busting unit was authorised to investigate two tenders of the municipality through Proclamation 244 of 2025.
“The preservation order forms part of the SIU’s efforts to implement investigation outcomes and ensure consequence management, including the recovery of financial losses suffered by state institutions as a result of corruption, fraud and maladministration.
“The SIU also refers evidence pointing to criminal conduct to the National Prosecuting Authority for further action,” the statement concluded. – SAnews.gov.za
Source: Original report at SAnews.gov.za.
