SIU inroads in reclaiming state funds
THE Special Investigating Unit (SIU) has recovered R126 million defrauded from state institutions and also managed to set aside R4 billion-worth of government contracts in the 2016-17 financial year.
This came out as the SIU presented its annual report to the justice and correctional services portfolio committee yesterday.
Briefing the committee, SIU head Andy Mothibi said the amount recovered was expected to increase after a court ruled in favour of the National Prosecuting Authority on appeals, in orders in excess of R300m, referred to the Asset Forfeiture Unit.
“We are expecting that we should see some movement in that regard,” Mothibi said.
He also said the value of money and/or assets that the unit had recovered totalled R43.5m.
“The value of potential loss prevented, as a result of SIU intervention, is R106.5m,” he said.
The unit envisaged to prevent R18m loss in the financial year and the amount recovered “was not only met but also far exceeded”, Mothibi said.
The government-awarded contracts and administrative decisions that were set aside were valued at R4bn in the same financial year.
Among the contracts set aside include the R651m contract awarded to service provider Gijima by the State Information Technology Agency and a R756m tender awarded by the Department of Communications on the broadcasting digital migration.
Others include the R2.5bn contract awarded by the Transport Department to Tasima to provide traffic management services and functions with eNatis and a decision by the SA Post Office to award a 10-year lease to Centurion Vision Development.
Mothibi said the value of civil matters, including counter-arbitration or counter-civil proceedings, was R3.8bn. One of the cases was the upgrade to President Jacob Zuma’s Nkandla homestead, he said.
The SIU was seeking instituted litigation in the Pietermaritzburg High Court to claim R155m for losses suffered by the state, due to the conduct of the principal agent overseeing the security projects, architect Minenhle Makhanya.
Mothibi said the litigation was waiting for pre-trial conference after pleading had closed. However, the matter may face legal delays.
“I have just received feedback that the lawyers on record (for Makhanya) have withdrawn,” he said.
Mothibi said 108 cases had been referred to the NPA. A further 137 cases were referred for disciplinary cases in state institutions to hold those responsible accountable.
Mothibi was confident that the number of probes in SOEs would increase when they report for the following financial year, after interactions with entities to make use of their service for forensic investigations.