DURBAN - President Cyril Ramaphosa has ordered a high level Special Investigating Unit (SIU) probe into the affairs of Umgeni Water, related to allegations of corruption, fruitless and wasteful expenditure over the past 18 months.
Presidential spokesperson Khusela Diko said the president had authorised a proclamation giving the SIU authority to investigate “allegations of unauthorised, irregular, fruitless and wasteful expenditure and loss incurred by the Umgeni board or the state”.
Ramaphosa authorised the proclamation on January 16, the full details of which are expected to be published in the next government gazette.
“The matter was brought to the attention of the SIU by a whistle-blower who had intimate knowledge of the irregularities at the utility,” Diko said.
Umgeni Water corporate stakeholder manager Shami Harichunder said the utility would co-operate fully with the investigation.
Projects listed on the proclamation to be investigated include:
* The provision or upgrading of emergency boreholes in the uMkhanyakude District Municipality
* Repair or refurbishment of Nagle Aqueducts
* Replacement of filter slabs, pipelines and nozzles in terms of the Contract Participation Goal Programme of Umgeni
* Provision or upgrading of chlorine distribution equipment, the distribution of chlorine and the upgrading of shaft pumps and lifts at the Durban Heights Plant.
A source in the water sector, who spoke on condition of anonymity, said there were “a lot of aggrieved contractors” who had lodged multiple complaints with Umgeni Water in recent years but these had “fallen on deaf ears”.
He estimated that the value of the contracts under investigation exceeded R1bn.
Individuals to be investigated in terms of the proclamation could include the utility’s board members, staff, contractors and service providers.
According to the proclamation, the SIU will “investigate allegations of serious irregularities in relation to the procurement of goods and/or services in a manner that was not fair, competitive, transparent, equitable or cost-effective contrary to applicable legal framework; improper or unlawful conduct by employees or officials; unlawful appropriation of expenditure or public money or property”.
The unit would also probe whether there was any intentional or negligent loss of public money or damage to public property, and unlawful or improper conduct which may cause serious harm to the interests of the public.
Diko referred questions about the amount of money involved to Umgeni Water. Harichunder said the utility would issue a comprehensive statement once the full proclamation had been published.
“During the difficult period that was experienced in 2017, following numerous anonymous allegations of misdemeanour and serious wrongdoing, the board gave an undertaking that it would share information with stakeholders as and when it became available.
“The board has fulfilled that commitment,” Harichunder said.
“Umgeni Water wishes to state without hesitation that when the investigation gets underway, the SIU will receive full co-operation from Umgeni Water.”
Harichunder said it was important that independent statutory agencies received support to enable them to conduct their work without hindrance.
The Organisation for Undoing Tax Abuse portfolio manager for water and environment Yamkela Ntola said the organisation, which had filed several submissions about the com- position of the utility’s board to the Minister of Water Affairs and Sanitation over the months, welcomed the investigation.
“With regards to fruitless expenditure, we have raised questions about this in Parliament, one of them being a trip to Las Vegas not authorised by the ministry it is about time proclamations were signed by the presidency,” he said.
Ntola said investigations should extend to other water boards such as uMhlathuze and Rand Water which faced similar allegations.
“We think there is plenty of work ahead of the SIU and the presidency if they are serious about cleaning up the water boards.”