The Eastern Cape high court in Gqeberha has dismissed an application brought by the Nelson Mandela Bay Municipality to review and set aside a Covid-19 procurement investigation report by the Special Investigating Unit (SIU).
SIU spokesperson Kaizer Kganyago said the municipality sought to set aside the report which revealed that processes governing public procurement were not followed when the municipality appointed HT Paletona Projects to construct 2,000 toilets and 2,000 standpipes with aerators in informal settlements.
“The municipality used the declaration of the state of disaster to circumvent proper procurement processes, which resulted in the award of a contract to the value of R24.6m. Only 200 toilets were built when the SIU issued a letter to the municipality to stop payment as the unit had referred the contract to the Special Tribunal for review,” he said.
Kganyago said two disciplinary referrals were made against two senior officials for their role in awarding the contract.
He said in the application, the municipality said the report was irrational and arbitrary and influenced by material errors of law.
In a judgment delivered on February 28, the application was dismissed.
In the judgment, acting judge Rosaan Kruger said the municipality's challenge was based solely on its aversion or dislike of the findings in the report.
“That is not a reason for the report to be set aside,” said Kruger.
The SIU has welcomed the dismissal.
“Though the SIU welcomes the dismissal and respects the rights of implicated parties to challenge its report, it is worried by the steps taken by the municipality as an organ of state,” Kganyago said.
He said the SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to PPE procurement together with the conduct of state employees.
“In line with SIU Act 74 of 1996, the SIU referred evidence pointing to criminality to the National Prosecuting Authority for further action. SIU investigations in state intuitions also identify lapses in governance and processes which exposes the state to irregular and wasteful expenditure and make recommendations to ensure such lapses do not recur,” he said.
Kganyago said as part of stakeholder engagement, the SIU will continue to work with state institutions to prevent further financial losses and protect the interest of the state and the public from abuse.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
Nelson Mandela Bay Municipality fails in bid to set aside Covid procurement investigation report by SIU
Judge Rosaan Kruger said the municipality's challenge was based solely on its aversion or dislike of the findings
Image: 123RF/Olivier Le Moal
The Eastern Cape high court in Gqeberha has dismissed an application brought by the Nelson Mandela Bay Municipality to review and set aside a Covid-19 procurement investigation report by the Special Investigating Unit (SIU).
SIU spokesperson Kaizer Kganyago said the municipality sought to set aside the report which revealed that processes governing public procurement were not followed when the municipality appointed HT Paletona Projects to construct 2,000 toilets and 2,000 standpipes with aerators in informal settlements.
“The municipality used the declaration of the state of disaster to circumvent proper procurement processes, which resulted in the award of a contract to the value of R24.6m. Only 200 toilets were built when the SIU issued a letter to the municipality to stop payment as the unit had referred the contract to the Special Tribunal for review,” he said.
Kganyago said two disciplinary referrals were made against two senior officials for their role in awarding the contract.
He said in the application, the municipality said the report was irrational and arbitrary and influenced by material errors of law.
In a judgment delivered on February 28, the application was dismissed.
In the judgment, acting judge Rosaan Kruger said the municipality's challenge was based solely on its aversion or dislike of the findings in the report.
“That is not a reason for the report to be set aside,” said Kruger.
The SIU has welcomed the dismissal.
“Though the SIU welcomes the dismissal and respects the rights of implicated parties to challenge its report, it is worried by the steps taken by the municipality as an organ of state,” Kganyago said.
He said the SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to PPE procurement together with the conduct of state employees.
“In line with SIU Act 74 of 1996, the SIU referred evidence pointing to criminality to the National Prosecuting Authority for further action. SIU investigations in state intuitions also identify lapses in governance and processes which exposes the state to irregular and wasteful expenditure and make recommendations to ensure such lapses do not recur,” he said.
Kganyago said as part of stakeholder engagement, the SIU will continue to work with state institutions to prevent further financial losses and protect the interest of the state and the public from abuse.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
READ MORE:
Eastern Cape education official, wife in court for school PPE fraud
SIU fails to recoup R92m from company that scored tender without bidding
SIU seizes documents at National Lotteries office in East London
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos