By Luvuyo Mjekula and Phila-Nathi Mapisa
The Special Investigating Unit’s (SIU) probe into allegations of corruption and serious maladministration in the Makana Municipality is set to cost more than R12m, and Makana residents may have to pick up the tab.
The SIU states that it will bill the municipality for all fees, costs and expenses related to the investigation.
The estimated cost of the probe is R12,192,780.
At a Makana Municipality special council meeting on 28 February 2025, a report on the SIU investigation was presented to council.
In the report, the SIU made it clear that the municipality had a duty to pay the unit fees and expenses. The document stated that in Section 5.1.B of the SIU Act, the SIU is “obliged to charge and recover fees and expenses from the municipality for all work done under the authority of the proclamation”.
Proclamation 207 of 2024 was issued by President Cyril Ramaphosa and is investigating seven Makana Municipality tenders issued between January 2019 and October 2024. These include suspected irregularities in the Makana Bulk Sewer Upgrade, mismanagement in professional engineering services for groundwater development, questionable contractor selection for water conservation projects, and potential conflicts of interest in the reappointment of MBB Consulting. Concerns have also been raised regarding the electrification of greater Makana, the awarding of municipal internet services contracts, and financial mismanagement at the Makana landfill site.
Various whistleblowers had sounded alarm and requested the SIU to investigate the procurement and payment processes related to awarding specific contracts.
On 31 October 2024, the Grahamstown Magistrate’s Court granted the SIU a search and seizure warrant. The following morning, with the assistance of the Hawks, officials raided the municipal offices, confiscating electronic devices and key documents. This action followed repeated non-compliance by municipal officials when the SIU and Auditor-General attempted to access financial records.
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is authorised to subpoena financial records, seize evidence, interrogate witnesses under oath, and institute civil litigation to recover funds lost to corruption. The findings may also be referred to the National Prosecuting Authority for criminal prosecution.
Grocott’s Mail contacted SIU spokesperson Kaizer Kganyago for an update on the investigation, but no reply was received at the time of publication.
However, the report presented at the 28 February special council meeting stated that the investigation has a 12-month timeframe – from 21 October 2024 to 29 August 2025.
In addition to paying costs, the municipality has to cooperate fully with the investigation, facilitate access to the SIU to all premises owned, leased and occupied by the municipality and ensure that the SIU has prompt and full access to relevant information, records, data and systems of the municipality.
Furthermore, Makana Municipality must ensure that staff members are made available and promptly present for interviews as required by the SIU, provide all relevant information to the investigation and grant access to any computer or any other information, communication and technology, ICT systems or database of the municipality.
The cash-strapped municipality has, however, been given the option to apply for an exemption to the National Treasury if unable to pay. In fact, the SIU encouraged the municipality to submit an exemption, and the SIU would provide details of the relevant official.
This was after the municipality provided the SIU with its financial status referring to a financial recovery plan and its reliance on grants.
Municipal spokesperson Anele Mjekula confirmed yesterday that the municipality planned to apply for an exemption as it won’t be able to afford the fees quoted by the SIU.
“This was made clear to the SIU when they visited the municipality late last year. The municipality is, however, awaiting contacts of the National Treasury from the SIU to be exempt from paying their fees,” said Mjekula.
Activists in Makhanda, including the Unemployed People’s Movement and the Makana Citizens Front (MCF), have long raised concerns about municipal corruption. In 2019, the High Court ruled for the municipality’s dissolution due to financial mismanagement, though this was later successfully appealed. With mounting frustrations, residents hope the SIU investigation will lead to tangible accountability.
The MCF yesterday (Thursday) said it supported the SIU’s figure of R12m for the “crucial” job. “It is the right thing to do because it is in the prescripts of the law. You cannot equate R12m to the importance of such an investigation,” said MCF chairperson Lungile Mxube.
Meanwhile, in a related development, the Eastern Cape DA has called the provincial government’s intended intervention to provide technical expertise to the beleaguered municipality “an utter failure”.
The party said prolonged water outages in Makhanda were due to “the catastrophic failure of the municipality’s water infrastructure”. “The situation has become increasingly dire, with the local prison and Settlers Hospital frequently left without water. The crisis has reached alarming proportions at the hospital, where patients are now required to bring their own water,” said the party’s provincial leaders.
The party says it has written to Williams again, demanding urgent action.
The DA makes the following proposals to resolve the Makhanda water crisis:
- Reinstating the seconded civil engineer.
- Develop a revised turnaround plan to restore all municipal services to government standards within 12 months.
- Immediately eradicate 114 bucket toilets.
- Immediately publish all by-laws, tender outcomes, sectoral plans, and the Integrated Development Plan (IDP) on the municipal website.
- Immediately replace the dysfunctional call centre.
- Publish the budget expenditure on the website every month.
