The Special Investigating Unit (SIU) has welcomed a Special Tribunal ruling that has set aside an R85 million contract
Image: Screenshot/SIU Youtube
The Special Investigating Unit (SIU) has welcomed a Special Tribunal ruling that has set aside an R85 million contract for the construction of a border wall along the KwaZulu-Natal–Mozambique border.
This comes after the SIU uncovered that the ISF Shula Joint Venture used a fraudulent B-BBEE certificate, an expired Letter of Good Standing, and failed to meet financial capacity requirements to secure the tender.
The investigation further found that only 5.29 km of the planned 8 km border wall was completed, despite the contractor receiving about R84 million of the R85 million contract value.
The wall was "commissioned by the KwaZulu-Natal Department of Transport in response to community concerns about rampant cross-border crime, particularly the smuggling and trafficking of stolen and hijacked vehicles into Mozambique".
The investigation, authorised under Proclamation R.16 of 2021, covered allegations linked to the KwaZulu-Natal Department of Transport between 2016 and 2021.
The SIU said it now seeks to recover all funds paid to the contractor, including any profits derived from the contract.
"The SIU will now pursue recovery of the monies paid, ensuring that public funds are restored to the state. As part of the order, ISF Shula Joint Venture has been directed to repay all profits it derived from the contract to the SIU.
"An independent expert will be appointed by ISF Shula Joint Venture to determine the amount of these profits. The SIU will review the findings, and if there is a dispute, the matter will be referred back to the Tribunal for determination. Furthermore, ISF Shula Joint Venture has been ordered to pay the legal costs".
The anti-corruption watchdog added that the "judgment validates the SIU’s investigation and sends a clear message that fraudulent certificates, misrepresentation, and incomplete delivery will not be rewarded".
"In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action".
"The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.
mthobisi.nozulela@iol.co.za
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