Special Tribunal sets aside R67m public works plumbing contracts
The contracts were awarded between 2015 and 2019 and were for services related to vacuum pumping of septic tanks and emergency sewage blockage interventions.
The tribunal also dismissed a counterclaim of R33m, which Kroucamp Plumbers had submitted against the department. In a statement, the SIU said it contested the counterclaim, resulting in a favourable outcome for the department.
The order follows an investigation conducted by the SIU which uncovered a complex network of corruption involving falsified bidding documents, undisclosed conflicts of interest, and payments made to officials who manipulated the tendering process.
The SIU said its investigation revealed that Kroucamp Plumbers misrepresented its B-BBEE status, submitted incomplete bidding information and colluded with departmental officials to secure contracts totalling millions of rand.
'The tribunal determined that the company's director, Johannes Jacobus Kroucamp, exploited the corporate structure for personal gain, thereby jeopardising the interests of the state,' SIU spokesperson Kaizer Kganyago said.
According to Kganyago, judge David Makhoba emphasised the gravity of the misconduct, indicating that the tenders breached constitutional procurement regulations and eroded public trust.
'The ruling annuls both contracts and revokes the juristic personality of Kroucamp Plumbers, requiring the company to compensate the state for the financial losses incurred. Consequently, Mr Kroucamp may be held personally accountable for the company's debts owed to the state,' Kganyado said.
President Cyril Ramaphosa directed the SIU, under Proclamation R20 of 2018, to investigate allegations of serious maladministration, improper conduct and corruption in the awarding of tenders by the department of public works and infrastructure.
The SIU is also empowered to institute civil action in the high court or a special tribunal to address any wrongdoing uncovered during investigations related to corruption, fraud or maladministration.
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