In June 2022, the head of SIU, Adv Andy Mothibi, presented to Parliament the SIU's progress regarding investigations into the Department of Water and Sanitation (DWS). Here is a recap of that presentation. #SIUWorkingForYou
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PART 1
1. There are eight proclamations that are DWS related that the SIU is currently investigating or finalised the investigations.
Here is a summary of the outcomes of all cases.
2. The SIU finalised the Mhlatuze Water Board investigation in 2013. Here is a summary of the SIU's findings:
3. In the investigation into DWS affairs under proclamation R54 of 2012, the SIU found the following:
4. In consequence management of the investigation lead to the arrest of an SAP consultant. Last week, the Special Tribunal ordered SAP had to pay back R81 million. In March 2022, SAP was ordered to pay back R413 million.
5. Under the same proclamation, the SIU investigated an upgrade project of DWS in the Sundays River Valley Municipality through Amatola Water Board in the Eastern Cape.
6. The SIU's made consequences management recommendations to the DWS and these are the outcomes:
7. In line with the SIU Act, when the SIU finds evidence pointing to criminal activity, the SIU refers the evidence to the NPA. Here are the referrals the SIU has made under this proclamation:
8.Tomorrow, we will do part two of our water investigations update. Remember, when you see fraud and corruption of State funds and resources, blow the whistle and report it using any of our channels listed on the poster.
SIU receives order to interdict pension benefits of former DDG of the Department of Water and Sanitation
On 13 January 2025, the Special Tribunal court granted the Special Investigating Unit (SIU) authority to interdict the pension benefits of Zandile Yvone Mathe, the former Deputy Director-General (DDG) of the Department of Water Affairs (now known as the Department of Water and Sanitation).
According to the order, Mathe is prohibited from withdrawing or diminishing the value of funds held or managed by her pension fund, specifically the Government Employees Pension Fund (GEPF) and the Government Pensions Administration Agency.
The SIU approached the Special Tribunal to interdict pension benefits after Mathe was dismissed following disciplinary proceedings based on SIU referral and took steps to claim her pension benefits.
The Special Investigating Unit (SIU) welcomes the arrest and court appearance of former Transnet Group Capital (TGC) Chief Executive Officer Herbert Msagala. He appeared before the Johannesburg Specialised Commercial Crime Court on fraud, corruption, theft, and money laundering charges. Following his first appearance, Msagala was granted R60,000 bail.
The arrest and court appearance follows a thorough investigation by the SIU, which uncovered that Msagala unduly benefited from kickbacks worth over R26 million from IGS Consulting Engineering, which he allegedly used to purchase properties and vehicles.
The SIU's investigations focused on contracts totalling over R194 million that TGC awarded to IGS Consulting Engineering. These contracts were related to maintaining and upgrading high-pressure pipeline infrastructure as part of the New Multi-Product Pipeline project, which transports various fuel products from Durban to Gauteng. Msagala improperly benefited from kickbacks exceeding R26 million from IGS Consulting Engineering. The SIU investigated under the authorisation of Proclamation No. 11 of 2018.
TRANSNET AND SIU LAUNCH COURT PROCEEDINGS AGAINST NEDBANK ON SWAP TRANSACTIONS
Transnet and the Special Investigating Unit (SIU) have jointly instituted proceedings against Nedbank out of the Johannesburg High Court to set aside
interest rate swap transactions which took place in 2015 and 2016 between Transnet and Nedbank, and under which Nedbank (@Nedbank) profited in excess of R2,736,094,704.82.
Transient (@follow_transnet) and the SIU also seek to recover the amounts that were unduly paid by Transnet to Nedbank under the transactions.
The interest rate swap transactions featured under the report of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector and formed part of a greater scheme to misappropriate and divert public funds from Transnet to Gupta-linked entities.
Transnet and the SIU are of the view that the interest rate swaps are void and unenforceable under the Public Finance Management Act, alternatively contravene section 217 of the Constitution and are contrary to public policy. There is sufficient basis for the sought relief
and Nedbank must account for its involvement and conduct in the swap transactions.
AFU and SIU granted order to preserve assets linked to corruption at the National Lotteries Commission.
(Timelines to follow)
The Asset Forfeiture Unit (AFU) of the NPA and the SIU have obtained a preservation order from the High Court of South Africa: Gauteng Division, Pretoria, to preserve properties and luxury vehicles linked to the siphoning of millions of Rand from the National Lotteries Commission
The High Court order is to preserve four properties in Polokwane and Louis Trichardt, Limpopo Province, and three luxury vehicles (Rolls-Royce Phantom, BMW G30 520d Series Sedan, and BMW 7 Series Sedan M760 Li xDrive), with a combined value of approximately R14 million.
SIU granted order to freeze pension benefits of former Lepelle Northern Water official linked to Giyani Water Project.
The Special Investigating Unit (SIU) has obtained a preservation order to freeze pension benefits of Carel Schmahl, former General Manager Operations at Lepelle Northern Water (LNW), to the value of approximately R10.2 million.
SIU investigation had revealed that Schmahl had allegedly tempered with resolutions of a task team meeting and used cost estimates of another company to motivate for the appointment of LTE Consulting for a project to provide clean water to villages in Giyani, Limpopo Province,
Minister @RonaldLamola to sign cybercrime cooperation protocol with France to increase SIU Capacity. You can watch the briefing here: youtube.com/live/2P928sglY…
Minister of @DIRCO_ZA Minister Naledi Pandor takes to the podium.
“This partnership will ensure improved capacity and skills of the SIU with leading the fight against corruption.”
Minister of Justice and Correctional Services @RonaldLamola and, Minister for Europe and Foreign Affairs of the French Republic Catherine Colonna sign the cooperation protocol agreement to improve Special Investigating Unit’s (SIU) cyber forensic capabilities.