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President orders SIU probe into City of Johannesburg tenders

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President Cyril Ramaphosa has authorised the Special Investigating Unit (SIU) to investigate alleged wrongdoing within the Johannesburg Metropolitan Municipality or by service providers in the city’s procurement of or contracting for vehicles - known as the “red fleet” - from Fire Raiders (Pty) Ltd in a 2014 tender valued at R86,4 million.

Whistleblowers have alleged that while the costs associated with the purchase of the “red fleet” were paid over to the service provider, delivery was not effected.

The President has referred allegations to the SIU in terms of Section 2(1) of the Special Investigating Units and Special Tribunals Act of 1996 (Act No 74 of 1996).

The SIU has been authorised to investigate any alleged serious maladministration in connection with the affairs of the municipality; improper or unlawful conduct by employees or officials of the municipality; unlawful appropriation or expenditure of public money or property, and unlawful, irregular or unapproved acquisitive acts, transactions, measures or practices that have a bearing on state property.

The SIU will probe whether municipal employees or officials or contractors or service providers had acted in a corrupt manner; engaged in fraudulent, unauthorized, irregular or fruitless and wasteful expenditure, or had acted in a corrupt manner or unduly benefited themselves or other persons or entities.

The investigation will cover the period between 1 January 2009 and the present will look into suspected intentional or negligent loss of public money or damage to public property; possible offences under the Prevention and Combating of Corrupt Activities Act and unlawful or improper conduct which has caused or may cause serious harm to the interests of the public.

These terms of reference will apply also to allegations of wrongdoing regarding repairs and maintenance work at fire stations in the City of Johannesburg; the procurement of closed-circuit television equipment and related services from SOS Protecsure National Division CC, and the procurement of or contracting for office accommodation and furniture for the city’s Integrated Operations Centre.

Media enquiries: Khusela Diko, Spokesperson to the President on 072 854 5707 

Issued by: The Presidency