The Standing Committee on the Auditor-General has been briefed that cases of material irregularities referred to law enforcement agencies reveal deep-seated procurement weaknesses across the state, leading to widespread fraud, corruption, and theft that have crippled service delivery.
This revelation came during a briefing to the committee from the Hawks and the Special Investigating Unit (SIU). SIU spokesperson Kaizer Kganyago subsequently confirmed that multiple investigations into these irregularities are ongoing.
According to Kganyago, the SIU presented details of 19 cases referred to it by the Auditor-General. Of these, three were incorporated into existing investigations launched via presidential proclamation, while nine required new proclamations to initiate probes.
Kganyago stated that the investigations overwhelmingly point to a failure to follow proper procurement processes. The majority of cases were found at the municipal level, with significant investigations also underway involving the State Information Technology Agency (SITA) and the Integrated Financial Management System (IFMS) program within the National Treasury.
“The investigation is very at an advanced stage,” Kganyago said of the National Treasury IFMS case, noting that referrals have already been made and that the proclamation was recently amended to include the Department of Public Service and Administration (DPSA) after the SIU identified a discrepancy.
Addressing concerns from the committee about the length of some investigations, Kganyago acknowledged past delays but asserted that the current SIU leadership has made speed a priority. He cited challenges beyond the unit’s control, such as interviewees becoming ill or launching legal challenges to delay the process. To ensure accountability, the SIU issues interim reports and makes referrals for disciplinary action and recovery of funds before investigations are fully finalized.
On the question of tangible outcomes for the public, Kganyago pointed to the recovery of over R8 billion in the previous financial year. He emphasized that the SIU publicly communicates its findings and outcomes from the Special Tribunal. However, he clarified that while the SIU refers cases for prosecution, actual arrests and prosecutions are handled by other agencies like the National Prosecuting Authority (NPA) and the Hawks, with whom the SIU collaborates through a fusion centre.
Kganyago confirmed that nearly 90% of the SIU’s investigations relate to procurement. He distinguished between systemic weaknesses in the processes themselves and instances where officials deliberately circumvent the rules for personal gain, such as artificially keeping contracts just below the R500,000 threshold to avoid competitive bidding.
Finally, Kganyago stressed that the fight against corruption requires a “whole of society approach,” urging the public to report malfeasance rather than leaving it solely to law enforcement agencies. The SIU’s role, he reiterated, is to investigate, recommend systemic improvements, and recover funds, while other agencies are responsible for making arrests.
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