President Cyril Ramaphosa has officially enacted a new proclamation, along with a significant amendment, that empowers the Special Investigating Unit (SIU) to look into claims of severe maladministration, corruption, and improper expenditures at North West Transport Investments (SOC) Limited (NTI) and the eThekwini Metropolitan Municipality.
With this mandate, the SIU is now authorized to recover any financial losses incurred by the State or these public entities as a result of fraud, corruption, or mismanagement.
The President has directed a comprehensive investigation into the operations of NTI, including its fully owned subsidiary, North West Star (SOC) Limited (NSL), and the sub-subsidiary Atteridgeville Bus Service (SOC) Limited (ABS).
The SIU’s investigation will thoroughly examine the procurement, contracting, and payment processes associated with fuel supplies provided by Zentrafor Fuel (Pty) Limited, operating as FuelU, vehicle rental agreements established on July 28, 2023, and commuter bus services detailed in a sub-contractor agreement dated July 7, 2023.
Additionally, investigators will look into serious maladministration concerning claims made by Tansanat Coachlines (Pty) Limited, Ziggy Investments CC, and their joint venture.
The SIU will evaluate whether operations violated National or Provincial Treasury regulations and will review the conduct of the Business Rescue Practitioner (appointed on July 21, 2022), along with their agents or NTI personnel, to ascertain if anyone improperly benefited at the State’s expense.
In KwaZulu-Natal, Ramaphosa has modified Proclamation 226 of 2024 to extend both the duration and the scope of the procurement investigation at the eThekwini Metropolitan Municipality.
The SIU will assess whether these specific procurement processes were conducted fairly, competitively, transparently, equitably, and in a cost-effective manner, while also investigating any irregular expenditures.
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is committed to addressing not only civil wrongs but also any further misconduct.
