SIU obtains R67m recovery order against plumbing contractor
Contracts declared invalid and unlawful
This action follows the Special Tribunal's review, which led to the cancellation of contracts totalling R67m that were awarded to Kroucamp Plumbers between 2015 and 2019.
These contracts were for services related to vacuum pumping of septic tanks and emergency interventions for sewage blockages.
'The tribunal has declared these contracts invalid and unlawful and has ordered the service provider to refund the funds received from the department in relation to these contracts,' a statement from the SIU read.
Counterclaim dismissed
According to the SIU, the comprehensive financial recovery includes R46.6m from invalid 2015 to 2017 contracts, and R20m from unlawful 2017 to 2019 tenders.
The tribunal also dismissed a counterclaim of R33m, which Kroucamp Plumbers had submitted against the department.
'This counterclaim was effectively contested by the SIU, resulting in a favourable outcome for the department.'
SIU investigation reveals misconduct
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 investigation revealed that Kroucamp Plumbers misrepresented its Broad-Based Black Economic Empowerment (B-BBEE) status, submitted incomplete bidding information, and colluded with departmental officials to secure contracts totalling millions of rands.'
Kroucamp might be held personally responsible
In addition, 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.
'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, Kroucamp may be held personally accountable for the company's debts owed to the state,' the statement said.
The SIU conducted its investigation into the Kroucamp Plumbers corruption case under Proclamation R20 of 2018.
'This proclamation authorised the SIU 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 explained that it 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.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action. – SAnews.gov.za
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