SIU sues over dodgy state contracts
THE SPECIAL Investigating Unit has filed a slew of cases in court against contractors over many irregular contracts awarded in government departments and entities.
The SIU has listed a number of civil matters in the courts where it is trying to recover tens of millions of rand from the contractors.
The unit said, in its financials tabled in Parliament, it had lodged five civil matters in court in the 2015/16 financial year to recoup the millions for the state.
The lawsuits followed forensic investigations conducted by the SIU on some of the contracts.
It reported in its financials that it sought to set aside a R265 million contract given to a contractor at the State Information Technology Agency (Sita). It said the contract was set aside because Sita’s procurement processes were flouted.
In another case, the SIU is trying to recover R82m from a contractor because the payment was illegal. This contract was awarded in 2010.
“The plaintiff was unjustly enriched and the respondent was unjustly impoverished because the plaintiff rendered no performance as quid pro quo for the payment of this amount,” it said.
In another matter, the SIU sued a contractor for a R139.4m invalid lease agreement. Supply chain management regu-
TOOK ACTION: In 2013, Public Works Minister Thulas Nxesi said millions were saved by taking the case of the police lease to court.
lations were violated in the contract. A settlement has been reached to set aside the lease agreement and the contract has been declared null and void.
The SIU is also seeking to recover millions from inflated prices paid for leases, renovation of and security in government properties.
The Department of Public Works called for the investigation into a number of contracts in 2013. At the time, the department said it found it paid R28m for six unoccupied buildings in Joburg. It is trying to recover the money from the landlord, and two officials were fired from the department. The department said it was also trying to recoup R50m in another dodgy lease. It found corruption in the lease, leading the department to pay R50m.
The SIU and Public Works are suing Roux Shabangu in the high court in Pretoria for the multimillion rand lease building for the SAPS.
In 2013, Minister of Public Works Thulas Nxesi said they saved the state R780m by taking the matter to court.
Public Works was also instituting a civil claim of R6.3m over a lease that was irregularly awarded to a contractor.
In yet another claim, the department wants to recoup R3.5m for an improperly awarded contract.
The SIU said it had wanted to bring more applications to the courts to recover millions from dodgy tenders and contracts.