President Cyril Ramaphosa has authorised the Specialised Investigation Unit (SIU) to investigate Rooiwal Wastewater treatment plant tender in the City of Tshwane Metropolitan Municipality. The municipality allegedly irregularly awarded the R290 million tender to controversial businessman Edwin Sodi's companies NJR Projects and Blackhead Consulting.

BLAMING IT ON THE LATE BUSINESS PARTNER

Sodi blamed the failure of the contract on his late partner Rudolf Schoeman of CMS Water Engineering, whom he was in a joint venture with, when he was awarded the tender. "The completion of the project ultimately failed due to the fraudulent conduct of Mr R Schoeman, a director of CMS Water Engineering. The consequence of the fraud perpetrated by Mr Schoeman resulted in NJR laying criminal charges with the SAPS and pursuant to an investigation, Mr Schoeman was arrested and charged with fraud," Sodi's letter from his lawyers to the City of Tshwane said. He was responding toto the notice of intention by the City of Tshwane to blacklist his companies NJR Projects and Blackhead Consulting over the failed project.

MALADMINISTRATION AND CORRUPTION

Ramaphosa signed a proclamation authorising the Special Investigating Unit (SIU) to investigate allegations of maladministration and corruption in the affairs of Tshwane Metropolitan Municipality and to recover any financial losses suffered by the state. The R290 million tender was awarded to a company linked to controversial Free State businessman Sodi in Tshwane. The company is accused of not delivering the job they had promised at the Rooiwaal Water Plant. The wastewater plant was linked to the outbreak of cholera that killed over 20 people in Hammanskraal a few months ago. "Proclamation R 138 of 2023 authorises the SIU to probe the procurement contracting for construction of Phase 1 upgrades and urgent refurbishment at the Rooiwal Wastewater Treatment Works," SIU spokesperson Kaizer Kganyago said. "The SIU will also investigate any unauthorised, irregular or fruitless and wasteful expenditure incurred by Tshwane Metropolitan Municipality or the state," he said.

MUNICIPAL OFFICIALS TO BE INVESTIGATED AS WELL

Kganyago added that the scope of the investigation also covers any unlawful or improper conduct by officials or employees of the municipality, the applicable suppliers or service providers or any other person or entity. "The scope of the SIU's investigation includes any unlawful or irregular conduct by employees of the municipality, service providers and officials that took place between 1 January 2018 and 22 September 2023, which is the date of the publication of the Proclamation," he said. In addition to investigating maladministration, malpractice, corruption and fraud, the SIU will identify system failures and make systematic recommendations to improve measures to prevent future losses.