The Special Investigating Unit (SIU) will investigate allegations of corruption and maladministration at the East London Industrial Development Zone (ELIDZ) in the Eastern Cape Province.
The investigation follows the signing of Proclamation R.20 of 2021 by President Cyril Ramaphosa. The proclamation authorizes the SIU to investigate allegations of corruption and maladministration in the affairs of ELIDZ, and to recover any financial losses suffered by ELIDZ or state.
The investigation will focus on the management of the Infrastructure Maintenance and Renewals Fund (“IMRF”) and the appropriation of the funds of the IMRF to the tune of R30 million; management or appropriation of funds received from the Department of Trade and Industry amounting to R21 million; appropriation of funds earmarked for the IMRF for other purposes; and the settlement that was paid to a former Chief Financial Officer (CFO) of the ELIDZ.
It is alleged that ELIDZ charged the former CFO with misconduct in November 2013 and later paid a settlement without any disciplinary hearing. According to the whistle-blower who brought the allegations of corruption and maladministration to the SIU, the settlement was not disclosed in the financial statements or annual report of the entity.
The SIU will also investigate the procurement by ELIDZ of the Alexander Golf Course, eight properties including a farm and payments made in a manner that was not fair, competitive, transparent, equitable or cost-effective; or contrary to applicable legislation, guidelines issued by the National Treasury or the relevant Provincial Treasury.
The SIU investigation will be extended to include the procurement of, or contracting for three 40MVA transformers for the Kemba Substation; feasibility studies and tests in respect of a Biofuel site in the Berlin area; and one 20MVA transformer for a Biofuel site in the Berlin and payments made in relation thereto. Furthermore, the SIU will investigate any improper or unlawful conduct by employees or officials of ELIDZ; or any other person or entity, relating to the allegations being investigated.
The investigation will cover transactions that took place between 01 January 2011 and 14 May 2021, and transactions that either took place before January 2011 or after 14 May 2021 but relevant to, connected with same persons, entities or contracts being investigated. The proclamation authorizes the corruption busting Unit to use all its legislative powers to subpoena bank statements and cellphone records, search and seize evidence, and interrogate witnesses under oath in an effort to hold those responsible to account for their actions. Evidence pointing to criminal conduct will be referred to the National Prosecuting Authority (NPA), as well as the Hawks in the South African Police Service (SAPS) for further action.
Fraud and corruption allegations may be reported via the following platforms: siu@whistleblowing.co.za / Hotline: 0800 037 774
Enquiries:
Kaizer Kganyago
Tel: 012 843 0048
Cell: 082 306 8888
E-mail: kkganyago@siu.org.za
SIU investigates corruption allegations in East London Industrial Development Zone
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