SIU to investigate state-owned North West Transport Investments

The Special Investigating Unit (SIU) will investigate procurement and contracting processes of the North West Transport Investments (NTI).

This after President Cyril Ramaphosa signed a proclamation authorising the corruption busting unit to probe allegations of serious maladministration, corruption and irregular expenditure at the state-owned entity.

“The President has directed the SIU to investigate the affairs of the NTI, its wholly owned subsidiary, North West Star SOC Limited [NSL], and the Atteridgeville Bus Service SOC Limited [ABS], which is also a wholly owned subsidiary of NSL,” the SIU said.

The unit will investigate the procurement and contracting processes related to the following:
•    Fuel supplied by Zentrafor Fuel (Pty) Limited, trading as FuelU.
•    Vehicle rental services provided under a Vehicle Rental Agreement dated 28 July 2023.
•    Commuter bus services outlined in a Sub-Contractor Agreement dated 7 July 2023, by or on behalf of the NTI, as well as the payments made for these services.

“The SIU has also been authorised to investigate significant maladministration in the NTI’s operations regarding the receipt, processing, approval, and payment of claims submitted by Tansanat Coachlines (Pty) Limited, Ziggy Investments CC, and the Tansanat Coachlines (Pty) Limited Ziggy Investments CC Joint Venture.

“The SIU will examine whether these operations breached applicable legislation and guidelines issued by the National Treasury or the relevant Provincial Treasury.

“The investigation will also examine actions taken by the Business Rescue Practitioner appointed on 21 July 2022, their agents, or NTI employees; whether individuals or entities received undue benefits; and whether this resulted in serious maladministration, causing actual or potential losses to the NTI or the State,” the SIU explained.

eThekwini Metropolitan Municipality

Meanwhile, an amendment has been made to the SIU’s investigation into the eThekwini Municipality’s Security and VIP Protection Services.

President Ramaphosa amended the proclamation by extending the investigation period and the procurement of several services.

“Proclamation 226 of 2024 authorised the SIU to investigate the eThekwini Metropolitan Municipality’s procurement of security and VIP protection services.

“It now also includes the procurement or contracting of security and VIP protection services under contract numbers CMS 0031, 1C 15104, 1C 18709, 1C 20359, 1X 31747, and 1C 29300, as well as any subsequent extensions or variations made by or on behalf of the municipality, including relevant payments.

“The SIU investigation will determine whether the procurement processes followed were fair, competitive, transparent, equitable, and cost-effective, and whether irregular expenditure was incurred,” the unit noted.

Any evidence of criminal conduct uncovered during the investigations will be forwarded to the National Prosecuting Authority for further action.

“The SIU is also authorised under the SIU Act to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration,” the SIU stated. –SAnews.gov.za

 

Source: Original report at SAnews.gov.za.