Spending without tenders probed

The Special Investigating Unit (SIU) is probing how four Eastern Cape municipalities spent nearly R300m on road maintenance equipment and water tanks without any contracts going out to tender.

SIU spokesperson Nazreen Pandor said investigations were under way in the Amahlathi, Mbhashe and Raymond Mhlaba local municipalities along with the Alfred Nzo district municipality.

“The Amahlathi report has been handed over to council to process,” Pandor said.

“The other three are still being investigated and will be completed by March 31.”

The matters under investigation are:

● The Amahlathi local municipality, northwest of East London, spent more than R92m to buy machinery to regravel less than 30km of road;

● The Mbhashe local municipality, north of East London, spent more than R72m buying equipment three years ago to regravel about 500km of road;

● The Raymond Mhlaba local municipality in the Amathole district spent R42.3m to regravel 600km of road; and ● The Alfred Nzo district municipality spent more than R75m on buying 15 water trucks, at an average of more than R5m a truck, without it going to tender.

Industry experts said last week the going rate for a water truck was between R1.2m and R2.2m.

The Amahlathi report, seen by Times Select, was handed over to the council in February 2018 but has not yet been tabled in council.

It recommends that criminal charges be brought against former municipal manager King Socikwa, a company named Kwane Capital and its director, Mcebisi Mlonzi, a businessman said to have close links to the local ANC.

Mlonzi declined to respond when contacted for comment.

“This matter has also been referred to the Asset Forfeiture Unit,” the report reads.

Pandor confirmed that the unit had referred criminal and disciplinary matters to these municipalities.

Contacted for comment, Socikwa – whose contract was not renewed in 2017 – denied any wrongdoing, but declined to comment further on the matter.