SIU closes taps to former water board CEO's pension over 'failed' project

09 September 2020 - 15:05 By naledi shange
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
The offices of Lepelle Northern Water were raided by the SIU in 2019. Documents seized there raised the alarm to corruption surrounding a Giyani water project.
The offices of Lepelle Northern Water were raided by the SIU in 2019. Documents seized there raised the alarm to corruption surrounding a Giyani water project.
Image: 123rf.com/Riccardo Lennart Niels Mayer

The Special Investigating Unit (SIU) is going after the pension of former Lepelle Northern Water board CEO Phineas Legodi.

The unit on Wednesday said it had been granted an interim order to freeze Legodi’s pension payout after he resigned from his post several weeks ago.

“A [temporary order] has been issued calling on the respondents to show cause on October 19 or soon thereafter why the interim order granted should not be confirmed,” said spokesperson Kaizer Kganyago.

“The SIU is investigating the contract awarded to LTE Consulting under [a proclamation]  wherein we have already identified serious maladministration and malpractice,” he added.

The saga relates to the multibillion-rand Giyani water project that was meant to see more than 50 villages in Limpopo get a better water supply. The Lepelle Northern Water board oversaw the project.

An SIU investigation found that the board irregularly contracted LTE Consulting to the project.

The then water and sanitation minister Nomvula Mokonyane instructed Lepelle to appoint LTE on an emergency basis, bypassing tender processes. Lepelle officials later piled a slew of other bulk water contracts on LTE, bringing the total cost to R2.2bn.

LTE, which could not do the work itself, subcontracted Khato Civils and South Zambezi to do it — but billions of rand later the project was yet to be completed.

The SIU said it had found that there had been a failure to comply with the Public Finance Management Act and water board supply chain management regulations, failure to heed professional engineering advice, poor project management, poor financial management and poor record keeping during the project.

The unit said it would “not leave any stone unturned” in its mission to recoup money that may have been misused in the project.

The dealings were unveiled when the SIU raided the offices of the water board last year. Documents seized there raised red flags.

TimesLIVE


subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now