The Special Investigating Unit (SIU) has launched an investigation into alleged cases of corruption, mismanagement, and improper expenditure related to the purchase of fourteen generators in the Theewaterskloof municipality during the 2022/23 financial year.
President Cyril Ramaphosa authorized the Special Investigating Unit (SIU) to conduct an audit of the procurement of 14 backup generators for water intakes and pumping stations in the local municipality of Theewaterskloof in the Western Cape. This investigation is based on Proclamation 339 of 2026, which empowers the unit to examine allegations of serious mismanagement, corruption, improper expenditure, as well as illegal or improper loss of public funds within the municipality.
SIU representative Selby Macgatho stated that the audit will cover the procurement process and contract awards for the supply, delivery, and installation of the generators during the 2022/23 financial year. The investigation will review water intakes and pumping stations in settlements such as Graaff-Reinet, Grahamstown, Caledon, Villiersdorp, Botrivier, Genadendal, Tesselaarstad, and Riversonderend.
SIU to scrutinize procurement process
Macgatho specified that the investigation will determine whether the purchases and payments related to the generators were conducted fairly, competitively, transparently, impartially, and economically efficiently. Furthermore, the SIU will examine whether the procurement complied with applicable legislation, as well as relevant guidelines, practice notes, circulars, and instructions issued by the National Treasury or Provincial Treasury.
He added that the Proclamation grants the SIU the authority to investigate any misconduct or illegal behaviour by officials or employees of the municipality, service providers, or any other natural or legal person in connection with allegations occurring between October 1, 2022, and August 21, 2026. Macgatho also noted that the audit will focus not only on potential corruption, fraud, and mismanagement but also on identifying systemic failures and proposing measures to prevent future losses.
In accordance with the Special Investigating Units and Special Tribunals Act 1996 (Act No. 74 of 1996), the SIU is empowered to investigate allegations, initiate civil proceedings in the Special Tribunal, and take steps to recover any financial losses incurred by the State. Moreover, the SIU Act allows the Unit to institute civil proceedings in the High Court or Special Tribunal on its own behalf to resolve any breaches identified during the investigation that arose from acts of corruption, fraud, or mismanagement.
The SIU reported that it received authorization to conduct the investigation only yesterday and cannot yet disclose the amounts that may be involved. The Unit emphasized that the investigation has not yet commenced, and further information will be provided once it begins.