Water and Sanitation on favourable judgement against a close corporation

Pretoria High Court grants DWS and SIU a favourable judgement against a close corporation

The High Court Gauteng Division, Pretoria has finally delivered its ruling on 10 February 2021, following a marathon trial that took place between the Department of Water and Sanitation (DWS) working closely with the Special Investigating Unit (SIU), and a close corporation, Metric Industrial Suppliers. DWS and SIU laid a complaint to claim R33 million for non-delivery of services against the corporation.

The fraudulent activities were uncovered by an independent auditor in respect of various alleged irregularities in the Construction Directorate of DWS. The forensic audit was, due to its conclusions, followed up by an investigation by the Special Investigation Unit.

The Department’s Construction Directorate had sought the services of a close corporation at its sites at Tzaneen and Levubu in the Limpopo Province. The Department claimed that during the period between April 2006 and November 2009, the corporation had submitted fraudulent invoices amounting to R33 million.

During the investigations by the Special Investigation Unit, it was established that a DWS employee, Mr Ryk Nel, colluded with the corporation to defraud the Department. It is alleged that Mr Nel and the corporation created fictitious purchase orders and delivery notes which resulted in the invoices being paid by the DWS to the corporation, despite the fact that no services were rendered to the Department.

Judge Norman Davis of the High Court Gauteng Division, Pretoria finally handed out his judgement in the matter and ordered the Metric Industrial Suppliers Close Corporation to pay DWS the amount of R27 510 067,17 together with interest thereon at the prescribed rate interest from time to time, calculated from 11 February 2014.  The close corporation was also ordered to pay the Department’s legal costs.

Ms Lindiwe Sisulu, the Minister of Human Settlements, Water and Sanitation, listed as the plaintiff in the case expressed her satisfaction on the judgement delivered by the High Court Gauteng Division. She has reiterated her commitment to turn the DWS around and root out maladministration.

“We are working very hard as a team to rid the Department of Water and Sanitation of fraud and corruption and we are also looking at audit findings and investigating any other misconduct related matters. We are winning our legal cases one at a time. As a result, our zero tolerance for corruption is becoming part of our culture and we have adopted a culture of zero tolerance for corruption”, said Minister Sisulu.

The DWS is continuing to cooperate with the SIU on all matters being followed up by the Unit as it follows up on all matters that are deemed suspicious in the DWS. It is vital for this cooperation to continue in line with the ideal of this Sixth Administration to root out all corrupt activities in the civil service. In line with this ideal Minister Sisulu has since her first Budget Vote for the DWS reiterated her unflinching efforts to see this ideal being realised in the DWS.

The people of South Africa deserve clean governance that will ensure no distraction towards the desired better life for all.

Enquiries:
Sputnik Ratau
Cell: 082 874 2942

Kaizer Kganyago
Cell: 082 306 8888

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