SIU welcomes ruling voiding irregular R646 million water tender

The Special Investigating Unit (SIU) has welcomed a ruling by the Special Tribunal setting aside a R646-million water contract in KwaZulu-Natal.

The contract was awarded to AECOM for emergency upgrades to the Thukela–Goedertrouw Transfer Scheme, aimed at preventing water shortages in Richards Bay.

The Tribunal found the contract value was unlawfully inflated from R407 million to over R646 million.

It also ruled the procurement process was unconstitutional and irregular, resulting in losses of more than R429 million to the State.

SIU spokesperson Kaizer Kganyago says their investigation found that senior officials failed to discharge their legislative responsibilities.

"These failures directly contributed to unlawful procurement, irregular expenditure, and the undermining of constitutional procurement principles," Kganyago said.

The Tribunal ordered AECOM to, within 30 days, provide audited financial statements, invoices, and supporting documents relating to the contract. Meanwhile, the SIU must, within 60 days, determine the profits earned by AECOM and inform the company of the amount to be repaid.