14 September 2016 SCOPA Presentation 1 2 SIU Mandate and Legal Scope Established in terms of the Special Investigating Units and Special Tribunals Act 1996 Act No 74 of 1996 SIU Act ID: 599642
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Slide1
Presentation to SCOPA by Special Investigating Unit
14 September 2016
SCOPA Presentation
1Slide2
2
SIU Mandate and Legal Scope
Established: in terms of the Special Investigating Units and Special Tribunals Act, 1996 (Act No. 74 of 1996) (“SIU Act”
)
current Special Investigating Unit (
“SIU”
) established by Proclamation No. R118
of 2001
Investigations mandated:
by a Proclamation from the President
Powers:
Can subpoena, search and seize evidence, and interrogate witnesses under oath
Can institute civil litigation to recover state funds lost or to prevent future losses
It does
not
have power of arrest or prosecution
It does
not
have the power to take disciplinary actions
It however, works closely with other relevant agencies where its powers fall short
Major functions:
investigate corruption and maladministration
institute civil proceedings to correct any wrongdoing, where causes of action can be found in lawSlide3
3
Principles to Improve Turnaround Times
Previously,
proclamations were generic
and wide in
ambit. The new
strategy is to
obtain proclamations
as specific as possible, where
matters will only be investigated that
relate directly to the allegations that have been
received;
However some proclamations consists of a
large number of
sub-investigations.
Proclamation R59 of
2014 includes the
procurement and administration of 2,162 leases at the Department of Public Works (“DPW
”);
For multi-year proclamations (investigations) the decision has been made to submit interim reports to the Presidency;
For long running proclamations (investigations), and where it makes sense to, interim reports will be submitted to the Presidency finalising completed focus areas as per the schedule of the proclamation;
The Head of the SIU has introduced project reviews which is aimed at fast tracking the finalisation of investigations.Slide4
4
Proclamations: Total number
Since January 2009, the SIU has received
69
proclamations from the Presidency’s office. For reporting purposes
3
additional proclamations have been included for the following reasons:
The original proclamation was published before 2009 but was extended/amended after 2009;
The original proclamation was published before 2009 but
the final report has not been submitted to the Presidency.
The 72 proclamations are made up of 58 original proclamations, 9 extensions and 5 amendmentsSlide5
5
Proclamations: Financial Year
The graph below represents the total number of proclamations published since 2009, including the additional 3 for reporting purposes. The total is
72
.Slide6
6
Proclamations: Sphere of Government
The graph below represents the total number of proclamations published per sphere of Government, namely National Government, Provincial Government, Local Government and State Owned Entities:Slide7
7
Proclamations: Final Reports Submitted
20 final reports have been submitted to the Presidency in respect of 25 Proclamations. The number of proclamations completed per financial year is shown against the number of proclamations received: Slide8
8
Proclamations: Final Reports Submitted
The complete list of final reports submitted is shown per sphere of government
National Government - 3
No
Proc Number
Dept/State Institution
Outcomes
Date Submitted
National Government Investigations
1
Proc R7 of 2007 extended by R35 of 2010 and R15 of 2012
National Department of Housing; All Provincial Departments of Housing; The former Housing Development Boards and Corporations; Local Authorities and their agents
Irregular expenditure – R1.5 billion
Fruitless & wasteful expenditure – R1 billion
Unauthorised expenditure – R1.4 billion
Potential recoveries – R747 million
Disciplinary recommendations – 91
Criminal referrals – R38
Non-compliance with Housing Act and PFMA
Non-adherence to section 217 of the Constitution and procurement related legislation
02 October 2015
2
Proc R36 of 2010
Department of Arts and Culture
Irregular expenditure - R94 million
Fruitless & wasteful expenditure - R24 million
30 April 2013
3
Proc R2 of 2011
National Heritage Council (Dept of Arts and Culture)
Disciplinary recommendations
SAPS referrals
30 April 2013Slide9
9
Proclamations: Final Reports Submitted
No
Proc Number
Dept/State Institution
Outcomes
Date Submitted
Provincial Government Investigations
1
Proc R2 of 2009 extended by R14 of 2012
Department of Education: Mpumalanga Province
Duplicate invoices identified – R3 million
AoD signed
Unlawful claims identified – R2.8 million
SAPS referrals
02 October 2015
2
Proc R37 of 2010
Department of Education, Eastern Cape Province
Disciplinary recommendations – 87
SAPS referrals – 14
AoDs signed - 33
01 July 2015
3
Proc R59 of 2010
Ikhala Further Education and Training College (Ikhala FET): Eastern Cape Province
Disciplinary recommendations – 2
SAPS referrals - 2
30 May 2013
4
Proc R34 of 2011
The former Department of Roads and Transport, Eastern Cape provinceIrregular expenditure – R149.8 millionFruitless & wasteful expenditure – R8.4 millionDisciplinary recommendations – 23SAPS referrals - 1 01 July 20155Proc R16 of 2012Former Department of Local Government and Housing: Mpumalanga province and its successor in title the Department of Cooperative Governance and Traditional Affairs: Mpumalanga province in its Water for All ProjectAFU preservation order – R1.5 millionAoDs signed – 2 (R2.1 million)Disciplinary recommendations – 4Criminal referrals - 201 July 20156Proc R55 of 2012The Guardians Fund components of the KwaZulu-Natal and Gauteng offices of the Master of the High Court of the Department of Justice and Constitutional Development5 AoDs signed – R28 164Disciplinary recommendations – 24Criminal referrals - 701 July 20157Proc R65 of 2012Public Service Sector Education and Training Authority (PSETA)Lease for office space deemed void ab initio which resulted in a saving of R11.8 millionCriminal referral - 101 July 20158Proc R59 of 2013National Department of Public Works: Prestige Project situated at Nkandla, KwaZulu-NatalDisciplinary recommendationsCriminal referralsCivil matters - 120 August 2014
Provincial Government - 8 Slide10
10
Proclamations: Final Reports Submitted
No
Proc Number
Dept/State Institution
Outcomes
Date Submitted
Local Government Investigations
1
Proc R76 of 2010
George Local Municipality: Western Cape Province
Disciplinary recommendation – 1
Criminal referral - 1
30 April 2013
2
Proc R3 of
2011 amended by R87 of 2011
Stellenbosch Local Municipality: Western Cape Province
Disciplinary recommendation – 1
Criminal referral - 1
30 April 2013
3
Proc R6 of 2011
Oudtshoorn Local Municipality: Western Cape Province
Disciplinary recommendation – 1
Criminal referral - 1
30 April 2013
4
Proc R33 of 2011
Midvaal Local Municipality: Gauteng Province
Disciplinary recommendation – 1
Criminal referrals - 202 October 20155Proc R58 of 2011Kopanong Local Municipality, Free State provinceCriminal referral – 1AoDs signed – 4 (R308 825)01 July 20156Proc R12 of 2012Swellendam Local Municipality: Western Cape ProvinceDisciplinary recommendations – 2Criminal referrals - 201 July 2015Local Government - 6 Slide11
11
Proclamations: Final Reports Submitted
No
Proc Number
Dept/State Institution
Outcomes
Date Submitted
State Owned Entities
1
Proc R58 of 2010
South African Broadcasting Corporation (SABC)
Irregular expenditure – R428 million
Fruitless & wasteful expenditure – R36 million
Non-compliance to policies/contracts
Disciplinary recommendations – 464
SAPS referrals – 5
SARS referral - 1
30 April 2013
2
Proc R48 of 2012
The State Information Technology Agency (Pty) Ltd (SITA)
Disciplinary recommendations – 26
Criminal referrals – 2
Civil matters - 1
01 July 2015
3
Proc R5 of 2014 amended by R56 of 2014
South African Post Office (SOC) Limited (SAPO)
Disciplinary recommendations – 7
Criminal referrals – 3
Civil matters - 1
01 July 2015State Owned Entities - 3 Slide12
12
Proclamations: Final Reports Prepared
18 final reports are being prepared in respect of 22 proclamations. The list is shown per sphere of government. It is anticipated that all these final reports will be submitted during this financial year.
National Government - 7
No
Proc Number
Dept/State Institution
Status
National Government Investigations
1
Proc R18 of 2005
extended by R5 of 2007
National and all Provincial Department(s) of Social Development
Final presidential report being prepared
2
Proc R27 of 2010
South African Social Security Agency (SASSA ICT)
Final presidential report being prepared
3
Proc R8 of 2011
National Department of Rural Development and Land Reform
Final presidential report being prepared
4
Proc R20 of 2014
Universal Service and Access Agency of South Africa
Final presidential report being prepared
5
Proc R55 of 2014
Department of Labour and the Compensation Fund
Final presidential report being prepared
6
Proc R57 of 2014 National Department of TransportFinal presidential report being prepared7Proc R62 of 2014Department of CommunicationsFinal presidential report being preparedSlide13
13
Proclamations: Final Reports Prepared
Provincial Government - 5
No
Proc Number
Dept/State Institution
Status
Provincial Government Investigations
1
Proc R21 of 2010
Department of Health: Gauteng Province
Final presidential report being prepared
2
Proc R21 of 2012
Limpopo Province Intervention
Final presidential report being prepared
3
Proc R43 of 2010
extended by R49 of 2012
Department of Public Works for the KwaZulu-Natal Province
1 Final presidential report submitted. Other final reports being prepared
4
Proc R6 of 2014
National Department of Co-operative Governance and Traditional Affairs (COGTA)
Final presidential report being prepared
5
Proc R49 of 2014
amended by R16 of 2015
KwaZulu-Natal Provincial Treasury
Final presidential report being preparedSlide14
14
Proclamations: Final Reports Prepared
Local Government - 4
No
Proc Number
Dept/State Institution
Status
Local Government Investigations
1
Proc R72 of 2009
North West Province Municipalities
Final presidential report being prepared
2
Proc R62 of 2010
Tshwane Metropolitan Municipality: Gauteng Province
Final presidential report being prepared
3
Proc R63 of 2010
Ekurhuleni Metropolitan Municipality: Gauteng Province
Final presidential report being prepared
4
Proc R8 of 2014
Bushbuckridge Local Municipality: Mpumalanga Province
Final presidential report being preparedSlide15
15
Proclamations: Final Reports Prepared
State Owned Entities - 2
No
Proc Number
Dept/State Institution
Status
State Owned Entities
1
Proc R2 of 2012
Eskom Holdings Ltd
Final presidential report being prepared
2
Proc R53 of 2014
amended by R15 of 2015
State Information Technology Agency (Pty) Ltd (“SITA”) - IBM and iFirm
Final presidential report being preparedSlide16
16
Proclamations: Active Investigations
There are 25 proclamations where the investigations are still ongoing
No
Proc Number
Dept/State Institution
Status
National Government Investigations
1
Proc R42 of 2010
Extended by R73 of 2011
South African Police Service (SAPS)
Investigation ongoing
2
Proc R53 of 2012
National Department of Rural Development and Land Reform and its agents (Land Restitution)
Investigation ongoing
3
Proc R54 of 2012
Department of Water Affairs (formerly the Department of Water Affairs and Forestry)
1
interim
presidential report being prepared. Other investigations still ongoing
4
Proc R10 of 2014
Department of Communications (Media Corner)
1
interim presidential
report being prepared. Other investigations still ongoing
5
Proc R59 of 2014National Department of Public WorksInvestigation ongoing6Proc R38 of 2010Proc R27 of 2015Department of Public WorksInvestigation ongoing7Proc R7 of 2014amended by R599 of 2015Department of Rural Development and Land Reform (formerly known as the Department of Land Affairs) in its national department, its provincial departments, its trading entities and their respective agencies (herein referred to as the DRDLR) and the State Information Technology Agency (PTY) Ltd (herein referred to as SITA). Johannesburg Deeds Office; Pretoria; Cape Town; Bloemfontein1 interim presidential report being prepared. Other investigations still ongoing8Proc R18 of 2016Department of Correctional Services "EMS")Investigation ongoing9Proc R19 of 2016Construction Industry Board (CIDB)Investigation ongoing10Proc R20 of 2016Department of Correctional Services ("Project Management Services")Investigation ongoingSlide17
17
Proclamations: Active Investigations
There are 25 proclamations where the investigations are still ongoing
No
Proc Number
Dept/State Institution
Status
Provincial Government Investigations
1
Proc R54 of 2014
extended by R44 of 2015
National Department of Public Works: Prestige Directorate: Western Cape
Investigation ongoing
2
Proc R598 of 2015 extended by R17 of 2016
Eastern Cape Department of Education
Investigation ongoing
3
Proc R22 of 2016
Department of Human Settlements, Gauteng Province and Lepelle Northern Water
Investigation ongoing
4
Proc R23 of 2016
KwaZulu-Natal Provincial Department of Transport
Investigation ongoing
5
Proc R32 of 2016
Independent Development Trust (IDT), the Dept of Basic Education (DBE) and the Dept of Education for the Free State (DEFS)
Investigation ongoing
Local Government Investigations
1
Proc R51 of 2014Vhembe District MunicipalityInvestigation ongoing2Proc R52 of 2014 Greater Tubatse Local MunicipalityInvestigation ongoing3Proc R40 of 2015Buffalo City Metropolitan MunicipalityInvestigation ongoing4Proc R21 of 2016Msunduzi Local MunicipalityInvestigation ongoing5Proc R31 of 2016Amahlathi Local MunicipalityInvestigation ongoingSlide18
18
NPA Referrals: Update
Performance measure
2014/15
2015/16
Narrative
Number of referrals made to the NPA and AFU
Actual
178
307
In respect of the 485 matters referred:
Two matters are under review by the NPA. In 109 matters dockets were handed over to the SAPS and are still under investigation. In six matters the NPA are still conducting investigations. In two matters the cases are set down for trial. In one matter there was a plea bargain and the accused paid a fine of R50,000. In one matter the NPA have drafted the charge sheet and the matter will go to trial In another matter the NPA have drafted a plea agreement with the accused and we are awaiting an outcome. In five matters the accused were arrested and are expected to appear in court. In six matters the NPA declined to prosecute. In nine matters the AFU are still conducting investigations. In another matter a R2 million confiscation order was obtained In one matter the AFU is appealing a decision that they cannot preserve the entire contractual amount and should only quantify the actual loss suffered for forfeiture This appeal impacts on some outstanding matters that are with the AFU for forfeiture There has been no feedback in respect of all the other matters that have been referred from the 2014/2015 financial year.Slide19
19
NPA Referrals: Details
Referrals made to the NPA 2014/2015 Financial Year
Proclamation
Nature of offence
No
2014/2015
Proclamation R6 of 2014:
National Department of Co-operative Governance and Traditional Affairs
Contraventions of section 38(1) read with section 86(1) of the Public Finance Management Act (PFMA). There was also a contravention of regulation 25(9)(a) read with regulation 30(1)(c) of the Construction Industry Development Board (CIDB)
Regulations
Fraud
for submitting invoices for payment for which the entities/persons were not entitled
3
2014/2015
Proclamation R7 of 2007 extended by R35 of 2010 and R15 of 2012:
National Department of Housing
Fraud and or theft committed in relation to invoices that were submitted and one referral was for the contravention of Section 86(1) of the PFMA
6
2014/2015
Proclamation R18 of 2005 extended by R5 of 2007:
National and all Provincial Department(s) of Social Development
Abusing their powers by receiving unlawful gratification/bribes, collecting monies not due to them by creating non-qualifying beneficiaries and unlawfully defrauding the Department by obtaining social grants to which they were not entitled
78
2014/2015
Proclamation R54 of 2012:
Department of Water Affairs
Alleged manipulation of procurement processes, VAT fraud and fraud in respect of payments received
Fraud for submitting invoices for payment for which the entities/persons were not entitled
Defrauding the Department in respect of a tender that was awarded
Fraud for manipulating procurement processes and for representing that VAT was due and payable when it was not13Slide20
20
NPA Referrals: Details
Referrals made to the NPA 2014/2015 Financial Year
Proclamation
Nature of offence
No
2014/2015
Proclamation R63 of 2010:
Ekurhuleni Metropolitan Municipality Gauteng Province
Forgery and uttering for unlawfully and intentionally creating, submitting and receiving fraudulent quotations
3
2014/2015
Proclamation R2 of 2012:
Eskom Holdings Ltd
Contraventions in terms of regulation 30(1)(a) and 30(1)(c) of the CIDB regulations
2
2014/2015
Proclamation R59 of 2013:
National Department of Public Works: Prestige Project situated at Nkandla, KwaZulu-Natal
Contraventions of section 38(1)(a), (b), (c)(ii) and (n) of the PFMA
3
2014/2015
Proclamation R72 of 2009:
North West Province Municipalities
Fraud, forgery and uttering and offence in terms of section 173(1) of the Municipal Finance Management Act (MFMA)
1
2014/2015
Proclamation R5 of 2014 amended by R56 of 2014:
South African Post Office
Contravention of section 20(1) of the Private Security Industry Regulatory Authority (PSIRA) read with section 20(2)(b) which constitute a criminal offence under the provisions of sections 38(3)(a), (f) and/or (g) of this authority
22014/2015Proclamation R42 of 2010 extended by R73 of 2011:South African Police ServicesFraud for using shell companies to submit quotations to SAPS without these companies knowledge or consent12014/2015Proclamation R43 of 2010 extended by R49 of 2012:Department of Public Works KwaZulu-Natal provinceFraud by construction companies which resulted in tenders being awarded by the Department. The Department would not have approved the tenders if the false documentation had not been submitted. An official also received unlawful gratification/bribes42014/2015Proclamation R12 of 2012:Swellendam Local Municipality Western CapeContraventions of sections 3 and/or 4 and/or 5 and/or 17(1) of POCA22014/2015Proclamation R62 of 2010:Tshwane Metropolitan Municipality Gauteng ProvinceFraudulently invoicing and receiving payments. Misrepresentation of employment and income details in order to be registered as Indigent Households60 Total 178Slide21
21
NPA Referrals: Details
Referrals made to the NPA 2015/2016 Financial Year
Financial Year
Proclamation
Nature of offence
No
2015/2016
Proclamation R7 of 2007 (extended by R35 of 2010 and R15 of 2012):
National Department of Housing
False Tax Clearance certificates submitted; False practical completion and handover certificates submitted; False claims submitted; Failure to comply with the provisions of sections 38(1) of the Public Finance Management Act (PFMA); Possible contravention of the Prevention and Combatting of Corrupt Activities Act (PACOCAA) and contraventions of section 86(1) of the Public Finance Management Act (PFMA); Fraud alternatively theft
13
2015/2016
Proclamation R72 of 2009: North West Local Municipalities
An official was registered as a member of a CC while employed by the Municipality;
No SCM procedure followed when appointing a service provider
3
2015/2016
Proclamation R38 of 2010 (extended by R27 of 2015): National Department of Public Works
Contravention of sections 3 and 4 of PACOCAA
2
2015/2016
Proclamation R42 of 2010 (extended by R73 of 2011): South African Police Services
Contravention of Section 17(1) of PACOCAA
46
2015/2016
Proclamation R43 of 2010 (extended by R49 of 2012): Department of Public Works: KZN
Fraud and Corruption;
False Tax Clearance certificates submitted
16
2015/2016
Proclamation R62 of 2010: Tshwane Metropolitan MunicipalityRecovery of the proceeds of unlawful activity in terms of the Prevention of Organised Crime Act (POCA); Fraud and contravention of Section 173(3) of the Municipal Management Finance Act (MFMA)32015/2016Proclamation R63 of 2010: Ekurhuleni Metropolitan Municipality Gauteng ProvinceAn official acquired or held a private interest in a contract emanating from or connected with the Municipality in which she was employed12015/2016Proclamation R8 of 2011: Department of Land ReformRecovery of the proceeds of unlawful activity in terms of POCA; Fraudulent acquisition of Land grants342015/2016Proclamation R21 of 2012: National Limpopo InterventionContravention of section 17(1) of PACOCAA142015/2016Proclamation R48 of 2012 : SITASubmission of false tax clearance certificates22015/2016Proclamation R53 of 2012: National Department of Rural Development and Land Reform (Land Restitution)Fraud in respect of false land claims and referrals for the AFU to recover the proceeds of crime; Fraud and Corruption and Contravention of Section 42(d) of the Restitution of Land Rights Act122Slide22
22
NPA Referrals: Details
Referrals made to the NPA 2015/2016 Financial Year
Financial Year
Proclamation
Nature of offence
No
2015/2016
Proclamation R53 of 2012: National Department of Rural Development and Land Reform (Land Restitution)
Fraud in respect of false land claims and referrals for the AFU to recover the proceeds of crime; Fraud and Corruption and Contravention of Section 42(d) of the Restitution of Land Rights Act
122
2015/2016
Proclamation R54 of 2012: Department of Water Affairs
Fraud alternatively theft
3
2015/2016
Proclamation R55 of 2012: Guardians Fund: KZN and Gauteng
Evidence points towards the commission of a criminal offence of fraud
4
2015/2016
Proclamation R6 of 2014: National Department of Co-operative Governance and Traditional Affairs
Fraud and contravention of Section 18(1)(2) of the Construction Development Industry Board (CIDB) Act 38 of 2000
6
2015/2016
Proclamation R8 of 2014: Bushbuckridge Local Municipality
Fraud and theft and contravention of Section 3 (alternatively 4, 10, 12, 13, 21) and 17(1) of PACOCAA
12
2015/2016
Proclamation R57 of 2014: Department of Transport
Contravention of section 34(1), 24(1) and 12(1) of PACOCAA; Contravention of section 38 and 86 of the PFMA and Fraud. Fraud and unlawful receipt of monies to extend the Prodiba contract.
172015/2016Proclamation R59 of 2014: Department of Public Works: LeasesSubmission of false tax clearance certificates 52015/2016Proclamation R62 of 2014: Department of CommunicationsMs Pule misrepresented that the Department would make a R10 million financial contribution in the form of a donation to Carol Bouwer Production to assist in the hosting of the ICT Indaba4 Total 307Slide23
23
NPA Referrals:
Proposed MeasuresThe measures considered to improve the follow-up with the National Directorate of Public Prosecutions (“NDPP”) and Directorate for Priority Crime Investigations (“DPCI”):
Draft Memorandum of Understanding (“MoU”) prepared for discussion on 22 September 2016;
MoU to include the creation of a monitoring and reporting committee constituted by the SIU, NDPP and DPCI members to track progress of casesSlide24
24
Disciplinary Recommendations: Update
Performance measure
2014/15
2015/16
Narrative
Number of instances where potential disciplinary matters were brought to the attention of the relevant State institution
Actual
3,769
68
In respect of the 3,837 recommendations
made:
:
The
State institutions have confirmed that they are considering the evidence in 39 matters. In 11 matters disciplinary proceedings have begun. In 16 matters the following outcomes were obtained: Not guilty, guilty, dismissal, suspended sentences with no pay for 14 days, dismissal of case, death, final written warning, resignation, appeal against dismissal. No feedback has been obtained in respect of all the other matters.
In respect of the 3,456 recommendations made to Eskom during the 2014/2015 financial year, 3,352 cautionary letters were issued; 78 hearings have commenced; 14 sanctions were awarded and 12 employees resigned before the hearings could commence Only two hearings have not commenced.Slide25
25
Disciplinary Recommendations: Details
Disciplinary Recommendations 2014/2015 Financial Year
Financial Year
Proclamation
No
2014/2015
Proclamation R6 of 2014: National Department of Co-operative Governance and Traditional Affairs
10
2014/2015
Proclamation R10 of 2014: Department of Communications: Media Corner
7
2014/2015
Proclamation R7 of 2007 extended by R35 of 2010 and R15 of 2012:
National Department of Housing
4
2014/2015
Proclamation R55 of 2012: The Guardians Fund of the Master of the High Court
74
2014/2015
Proclamation R8 of 2011: Department of Land Reform
7
2014/2015
Proclamation R53 of 2012:Department of Rural Development and Land Reform (Land Restitution)
6
2014/2015
Proclamation R18 of 2005 extended by R5 of 2007: National and all Provincial Department(s) of Social Development
31
2014/2015
Proclamation R54 of 2012: Department of Water Affairs
5
2014/2015Proclamation R63 of 2010: Ekurhuleni Metropolitan Municipality Gauteng Province1Slide26
26
Disciplinary Recommendations: Details
Disciplinary Recommendations 2014/2015 Financial Year
Financial Year
Proclamation
No
2014/2015
Proclamation R2 of 2012: Eskom Holdings Ltd
3 475
2014/2015
Proclamation R59 of 2013: National Department of Public Works: Prestige Project situated at Nkandla, KwaZulu-Natal
12
2014/2015
Proclamation R5 of 2014 amended by R56 of 2014: South African Post Office
1
2014/2015
Proclamation R42 of 2010 extended by R73 of 2011: South African Police Services
67
2014/2015
Proclamation R48 of 2012:
State Information Technology Agency (Pty) Ltd (“SITA”)
8
2014/2015
Proclamation R12 of 2012: Swellendam Local Municipality Western Cape
2
2014/2015
Proclamation R62 of 2010: Tshwane Metropolitan Municipality Gauteng Province
59
Total
3 769Slide27
27
Disciplinary Recommendations
: Details
Disciplinary Recommendations 2015/2016 Financial Year
Financial Year
Proclamation
No
2015/2016
Proclamation R7 of 2007 (extended by R35 of 2010 and R15 of 2012): National Department of Housing
2
2015/2016
Proclamation R72 of 2009: North West Province Municipalities
5
2015/2016
Proclamation R43 of 2010 (extended by R49 of 2012): Department of Public Works: KZN
19
2015/2016
Proclamation R62 of 2010: Tshwane Metro Municipality
1
2015/2016
Proclamation R8 of 2011: Department of Land Reform
2
2015/2016
Proclamation R48 of 2012: SITA
4
2015/2016
Proclamation R55 of 2012: Guardians Fund: KZN and Gauteng
2
2015/2016
Proc R5 of 2014 amended by R56 of 2014: South African Post Office (SOC) Limited (SAPO)
6
2015/2016Proclamation R7 of 2014 (amended by R599 of 2015: Department of Rural Development and Land Reform and SITA22015/2016Proclamation R8 of 2014: Bushbuckridge Municipality32015/2016Proclamation R51 of 2014: Vhembe District Municipality12015/2016Proclamation R52 of 2014: Greater Tubatse Local Municipality42015/2016Proclamation R57 of 2014: Department of Transport12015/2016Proclamation R59 of 2014: Department of Public Works: Leases92015/2016Proclamation R62 of 2014: Department of Communications22015/2016Proclamation R598 of 2015: Department of Education: ECP5
Total
68Slide28
28
Disciplinary Recommendations:
Proposed Measures
The measures to be considered to enforce action on the referrals made to the State Institutions:
Internal Audit Departments to include these in their audit plans;
External auditors to include these in their audit scope;
Where State Institutions have internal Monitoring and Evaluations (“M&E”) departments, the latter to include in their M&E plans;
Department of Monitoring and Evaluation (“M&E”) to include in their M&E plan
Send copies of referrals to DPSA (since late last year we
are
sending
copies of the disciplinary referrals to the
Presidency )Slide29
29
Summary of Civil Matters
Summary of Civil Matters
No
Proc Number
Dept/State Institution
Civil Matter Description
Value
1
R59 of 2013
National Dept of Public Works: Prestige Project: Nkandla KwaZulu-Natal
SIU vs Makahanya (Nkandla). This is an action against the principal agent on the project that seeks to recover R155 million based on his negligent approval of such payments, the over-designing of security related installations. Makahanya was appointed as the principal agent in the Nkandla construction project. It was established that his appointment was contrary to the SCM prescripts and accordingly fell foul of the constitutional requirements as set out in section 217. Makhanya further approved payments in a manner that resulted in a loss to the Department.
R155 million
2
R5 of 2014 amended by R56 of 2014
South African Post Office (“SAPO”)
Application to Review a Decision to award a Lease (Eco Point) to Centurion Vision Development (Pty) Ltd and to set aside the resulting 10 year Lease Agreement valued at approximately R 493 million (with a further Option to Purchase Eco Point at between on or before 16h00 on 30 April 2015 for an amount of R 526 million (Vat Excluded) or at any time thereafter for an amount of R 778 million (Vat Excluded)), including all Addenda thereto.
R778 million
3
R5 of 2014 amended by R56 of 2014
SAPO
The Applicants request the court to order Centurion Vision Development to refund to the SAPO all payments made by them in respect of or ancillary to the “invalid” Lease Agreement. This claim could be as high as R 244 million as at the end of May 2016, already, but it will increase every month that the Post Office continues to pay rental on Eco Point (the Post Office pays a monthly rental of approximately R 4.5 million, which escalates by 9% on an annual basis). In essence, this submission is based on the natural consequences of a contract being declared invalid or void
ab initio
.
To be determined
The SIU is seeking a declaration of the invalidity of contracts where after just and equitable relief will be pursuedSlide30
30
Summary of Civil Matters
Summary of Civil Matters
No
Proc Number
Dept/State Institution
Civil Matter Description
Value
4
R20 of 2014
Universal Service and Access Agency Of South Africa (USAASA)
Application to review a Decision to appoint and to set aside the appointment of Mr Zami Nkosi as the Chief Executive Office (“CEO”) of the Universal Service and Access Agency of South Africa (“USAASA”). The SIU submits that the appointment is unlawful for one or more reasons
R1.9m
5
R62 of 2014
Dept of Communications
The SIU has instructed the State Attorney to brief Counsel to consider the prospects of recovery of the loss from the accountable
person.
R693 875
6
R21 of 2012
Limpopo Province Intervention:
Provincial Treasury; Health and Social Development; Roads and Transport; Education and Public Works
Sankhyaa Learning Private Limited instituted action proceedings via summons against the Limpopo Department of Education and 2 Others in which Sankhyaa is claiming R 85.5 million, with interest calculated at 18% per annum. As such, Sankhyaa is effectively claiming approximately R 120 million from the Department (including interests). The Department is defending the case and filed a plea and counterclaim in which the Department submits that the contract is invalid for non-compliance with the prescripts regulating public sector procurement (i.e. no tender process was followed). Since the SIU learned that Sankhyaa was trying to reach a compromise or settlement with the Premier of the Province or the MEC of the Department, and at the request of the senior counsel representing the Department in the case, the SIU applied in terms of Rule 17 for intervention, which if granted would effectively make the SIU a 4
th
Defendant in the case and allow the SIU to file papers to defend the case, even if the Department should decide to settle the case.
R85.5mSlide31
31
Summary of Civil Matters
Summary of Civil Matters
No
Proc Number
Dept/State Institution
Civil Matter Description
Value
7
R53 of 2014 amended by R15 of 2015
State Information Technology Agency (“SITA”)
The iFirm contract of R302m was investigated and the matter is in court in order to declare the contract invalid and to set the contract aside. A court date is awaited.
R302m
8
R10 of 2014
Dept of Communications (Media Corner)
Application to review a Decision to award a tender to Media Corner and to set aside the resulting contract (with an all-inclusive contract value of approximately R 752 million) between the Department of Telecommunications and Postal Services (formerly known as the Department of Communications) and Media Corner, plus: (a) a prayer for Media Corner to repay to the Department R 12 783 368 in respect of monthly retainer fees that were paid by the Department to Media Corner during a period where the contract was suspended; (b) a prayer instructing Media Corner to provide to the Applicants all documents relevant to all payments made to Media Corner (e.g. invoices and invoices from sub-contractors etc.) in respect of the following three payments: R 15 million, R 15 473 311.31 and R 15 million; and (c) a prayer instructing Media Corner to repay to the Department all discounts, commission and profits taken by Media Corner
R752m
9
R59 of 2014
National Dept of Public Works
Misrepresentation
by DPW official which led to a longer lease being awarded.
R12m
10
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
SIU has been requested to investigate allegations of irregularities in the award of the renovations contract (SCM process) for this building, which is currently occupied by DPW. This contract was awarded in February 2009, and was completed in February 2012. During the period of the contract, 38 Variation Orders were approved to the value of R253 000 613.82.To be determined11R38 of 2010 extended by R27 of 2015National Dept of Public Works Empangeni Ramp – Application to recover overpayments and damages based on negligence/fraud. R11.6mSlide32
32
Summary of Civil Matters
Summary of Civil Matters
No
Proc Number
Dept/State Institution
Civil Matter Description
Value
12
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
Lebombo Border Post – Counsel was requested to seek a declaratory order setting aside the contract awarded on the basis that the award was in violation of the Constitution. The prayer for relief also seeks to recover
R103m
which it is alleged amounts to an overpayment.
R
1.9bn
13
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
Skilpadshek Border Post – The action seeks to recover R50.8m that was an overpayment to the contractor. The matter is set for trial for 31 Oct 2016 to 11 Nov 2016.
R50.8m
14
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
The
SIU established that the Department was being charged for more parking bays then were being provided. The building was in the interim sold to a new landlord. The SIU has approached the new landlord with a view to recovering the overpayments that he would be responsible for and to have the lease agreement rectified to indicate the correct position as regards what is being supplied. Negotiations are ongoing and presently looking positive.
To be determined15R38 of 2010 extended by R27 of 2015National Dept of Public Works Union Building - Assisting the Department in defending an action brought by the Plaintiff for the recovery of outstanding amounts due for work allegedly completed. R54m16R38 of 2010 extended by R27 of 2015National Dept of Public Works Mr Mia - This is an action that was instituted by DPW seeking the cancellation of 4 leases concluded with Mia and or his associated companies together with a claim for damages. Pleadings have closed and a trial date has been applied for. R8mSlide33
33
Summary of Civil Matters
Summary of Civil Matters
No
Proc Number
Dept/State Institution
Civil Matter Description
Value
17
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
The
landlord continued to receive rental payments from the Department after the lease had been cancelled and the Department had vacated the premises. SIU is awaiting the appointment of Counsel.
R9m
18
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
The
procurement of a lease by the Department contrary to Section 217 of the Constitution. Application to set aside the lease. Draft papers are being settled.
To
be determined
19
R38 of 2010 extended by R27 of 2015
National Dept of Public Works
The
procurement of a lease by the Department contrary to Section 217 of the Constitution. Application to set aside the lease. Draft papers are being settled.
R609m
20
R7 of 2014 amended by R599 of 2015 Dept of Rural Development and Land Reform and the SITA Application to Review a Decision to award a tender (RFB 653/2008 – The provision of e-Cadastre for the Department) to Gijima and to set aside the resulting contract(s) valued at approximately R 364 910 166.08, including all Addenda thereto. The application is based on an error that was made by the SITA during the bid evaluation and bid adjudication stages of the tender process, which resulted in the award being made to the incorrect service provider. R364mSlide34
34
Thank You
Adv. JL Mothibi
Head Special Investigating Unit