Special Tribunal nullifies two Mpumalanga PPE contracts
These contracts were for the supply and delivery of 3,000 infrared thermometers in April 2020 and an additional 1,000 devices in May 2020. The tribunal set aside the contracts after an application made by the Special Investigating Unit (SIU).
The tribunal, in its order dated May 5, also directed Vita Zoe to submit audited financial statements for the 2020/2021 financial year to the SIU and the tribunal registrar within 30 days of the order to determine payments received by Vitae Zoe under the two contracts.
Vitae Zoe had to propose a repayment plan within 15 days of a formal demand by the SIU.
'The SIU has received Vitae Zoe's financial statement and is determining the amount Vitae Zoe must repay,' SIU spokesperson Kaizer Kganyago said.
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Daily Maverick
30-07-2025
- Daily Maverick
Nine Wasted Years: State Capture and the failure to implement the Zondo Commission's recommendations
The Zondo Commission provides a valuable framework to eradicate State Capture and we must begin implementing its recommendations. We simply cannot afford another nine wasted years. This year marks nine years since advocate Thuli Madonsela released the ' State of Capture ' report and three years since the 'State Capture Commission' came to an end. R1-billion was spent on the State Capture Commission, yet we still have no significant progress in addressing State Capture cases. What we do have is multiple excuses from institutions tasked with implementing the commission's findings and recommendations. The Civil Society Working Group on State Capture has been tracking the implementation of the findings of the commission, and what we have found is a generally lacklustre approach to addressing State Capture. How can we expect corruption and State Capture to be eradicated if we are failing to implement the most basic of recommendations that were set out in the commission's report? The Zondo Commission The Zondo Commission, led by Former Chief Justice Raymond Zondo, was a commission of inquiry into allegations of State Capture, corruption and fraud in the public sector, including organs of State. It came about from the findings of former public protector Madonsela, who looked into allegations of crooked appointments of Cabinet ministers, directors and awarding of state contracts and other benefits. Her key recommendation was the appointment of a judicial commission of inquiry headed by a judge. The terms of reference of the Zondo Commission were very broad in scope, with the commission being appointed to investigate matters of public interest concerning allegations of State Capture, corruption and fraud. The commission found that State Capture did indeed take place between 2009-2018, the so-called 'nine wasted years' of the Jacob Zuma administration. The commission made extensive recommendations, some specific and focused and others much broader and far-reaching, including recommendations for the investigation and potential prosecution of some individuals and reform of various government processes and institutions. During this year's State of the Nation Address, President Cyril Ramaphosa revealed some of the progress being made in addressing State Capture. According to Ramaphosa's address, the SIU and Asset Forfeiture Unit had recovered R10-billion in State Capture-related cases. Ramaphosa also said that Parliament would introduce two key pieces of legislation relating to State Capture, one on combating money laundering and the other on protecting whistle-blowers. What is being done to ensure State Capture is addressed? Asset Recoveries The commission recommended coordinated action from various law enforcement entities including the Asset Forfeiture Unit (AFU), the Independent Police Investigate Directorate (Ipid), the Hawks, the Financial Intelligence Centre, South African Revenue Service (Sars), Reserve Bank, and the Special Investigating Unit (SIU) to achieve the recovery of monies lost to State Capture. The progress in recoveries is very slow – only R10-billion has been recovered from State Capture investigations. The money that the state spent that was tainted by State Capture amounted to R57-billion, with Eskom and Transnet's fraudulent contracts making up the biggest chunk. Of this money, the Guptas received R15-billion. Some estimate that the true cost of State Capture and corruption during that period is in fact R500-billion. So the recoveries are a really small fraction of the cost of State Capture and corruption. Combating money laundering At the end of 2022, Parliament passed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, to avoid the 'greylisting' of South Africa by the Financial Action Task Force (FATF). This was an important move toward ensuring financial transparency. However, the challenge is ensuring the beneficial ownership register is functional, accurate and accessible. This year, the President said South Africa would strengthen the legislation with further legislative and systemic improvements. It should include these elements. Whistle-blower protection Most of the evidence from the Zondo Commission came from whistle-blowers, and the commission was very clear in its recommendations relating to whistle-blowers, detailed in Part I Volume 4. However, to date, the whistle-blower legislation framework remains incomplete. In July 2023, the Department of Justice released a discussion document outlining proposed reforms. While the document includes several commendable proposals aligned with the Zondo Commission recommendations and civil society submissions, it fails to consolidate the existing complex and inconsistent legal framework, which remains a major obstacle for whistle-blowers. Additionally, it dismisses the idea of offering incentives to whistle-blowers. Civil society has argued that the proposed legislation is inadequate, and the outcome of the legislation to be introduced remains uncertain. Parliament The commission highlighted how parliamentarians failed in their duty to hold the executive accountable and prevent State Capture. Despite the commission's damning findings, MPs continue to neglect their responsibilities, prioritising party loyalty over the public good. Once again, we see most MPs not implementing the commission's recommendations and essentially not recognising the importance of the process to strengthen democracy. Many seem unaware that they play an important oversight role over the Presidency and the appointment to SOEs and legislative reform. Outa has closely monitored parliamentary activities and believes that Parliament's ongoing failure to combat State Capture and entrenched corruption remains a major threat to democracy. Some of the accused in the State Capture Commission, like Lucky Montana, Brian Molefe and Siyabonga Gama, are serving as MPs in Parliament for the uMkhonto Wesizwe party. Cedric Frolick, David Mahlobo and Malusi Gigaba serve as MPs for the African National Congress (ANC). These MPs oversee the institutions they are accused of collapsing and oversee the implementation of the Zondo Commission recommendations. Only a small number, such as Zizi Kodwa, have been held accountable, though with limited consequences. Criminal Justice System (National Prosecutions Authority) Most of the recommendations of the Zondo Commission were for further investigations and prosecutions. No high-profile politician or corporation has been successfully prosecuted. Even with enough evidence, the NPA has failed to prosecute major State Capture cases like Prasa, Transnet and Eskom. Moreover, the collapse of the extradition of the Gupta brothers and the implosion of the Nulane case raise serious concerns around the NPA's effectiveness in handling State Capture cases. The bungling of high-profile State Capture cases is unfortunate, because it shows that elites can get away with impunity because the state is failing. What should we be doing? Without fully addressing State Capture at all levels, we continue a cycle of establishing commissions of inquiry without making the systemic change needed for non-repetition. We need to ensure that State Capture is fully addressed. For this to happen, all state parties need to come on board and do their part. As for civil society, we will continue to apply pressure to state institutions and corporations to take accountability and redress their role in State Capture. The Civil Society Working Group on State Capture will continue tracking the implementation of Justice Zondo's recommendations, and we will be coordinating campaigns on whistle-blower legislation and keeping an eye on the upcoming NDPP appointment process. We simply cannot afford another nine wasted years. We need to spotlight the anniversary of the Zondo Commission to track the progress of State Capture and to keep the conversation concerning State Capture on the national agenda. The true impact and cost of State Capture will never be understood. Its severe impact will continue to be felt by the most vulnerable in our society for years to come. The Zondo Commission provides a valuable framework to eradicate State Capture, and we ought to begin implementing its recommendations now. DM Letlhogonolo Letshele is a campaigner at Open Secrets and represents Open Secrets and the Civil Society Working Group on State Capture. Open Secrets is a non-profit organisation which exposes and builds accountability for private-sector economic crimes through investigative research, advocacy and the law. To support our work, including the investigations that go into the Unaccountable series, visit Support Open Secrets.
The Citizen
24-07-2025
- The Citizen
Only 24 buses running as Great North Transport nears collapse
POLOKWANE – The Premier of Limpopo, Dr Phophi Ramathuba, stressed the urgent need for intervention at the financially struggling Great North Transport (GNT) during an oversight visit to their depot in Seshego on Tuesday. The state-owned bus service has been forced to cut down its fleet due to a worsening financial situation, with many of its buses out of service due to a lack of proper maintenance. You might also want to read: R15m in road unworthiness fines for Great North Transport Only 24 out of more than 120 buses are currently running while over 100 buses sit idle due to mechanical failures. Ramathuba highlighted the need for more mechanical engineers to be hired as there are only four available to ensure maintenance for the fleet. 'The condition is disheartening. There's much work to be done. Workers must remain hopeful,' said Ramathuba. She emphasised that GNT plays a crucial role in providing affordable transport for workers from disadvantaged communities and allowing its collapse would severely affect transportation across Limpopo. You might also want to read: President orders SIU to investigate Great North Transport Ramathuba announced that the entire management team has been suspended following their failure to address GNT's long-standing operational and financial issues. In May, CEO Dr Matata Mokoele, CFO Nazeem Essa and COO Mahlaku Mogoashane were suspended with full pay amid ongoing worker protests and financial scrutiny. Among the concerns were overdue pension contributions and unpaid medical aid for more than 1,000 employees, despite salary deductions. GNT has shut down over 200 routes across Limpopo and reported a loss of over R300m in the last five years. You might also want to read: Unpaid provident fund sparks protest by Great North Transport employees In February, hundreds of commuters were left stranded when buses servicing Seshego, Mokopane, Giyani, Tzaneen, Motetema, Makhado and others were pulled from operation. At the time, Mokoele said the company was in the process of procuring a new fleet but was forced to contract buses to maintain services. 'We have been struggling to service several routes across the province due to a shortage of buses. Most of the buses are old and are experiencing breakdowns daily as a result. When the buses break down, we are already depleted in terms of the fleet it creates that problem for us. As a result, we end up using the existing buses to do multiple routes,' Mokoele said.
Mail & Guardian
23-07-2025
- Mail & Guardian
SIU investigation into lottery corruption hamstrung by red tape
Narrow terms of the original proclamation authorising the Special Investigating Unit (SIU) to investigate dodgy procurement at the National Lotteries Commission has hamstrung its investigations, despite the SIU having applied for an amendment to the terms 15 months ago. Photo: Steve Kretzmann Almost 15 months after the The original October 2020 proclamation allowed the SIU to only investigate grants made by the Since then, several independent audits commissioned by the NLC have also uncovered fraud, corruption and extensive circumvention of 'procurement processes' running into hundreds of millions of rand. But the narrow terms of the original proclamation have left the SIU hamstrung and unable to investigate the NLC procurement and appointments of service providers. The NLC is also unable to investigate potentially fraudulent or corrupt grants that fall outside the window of the 2020 proclamation. A backlog of applications for SIU proclamations built up during the tenure of former justice and constitutional development minister A flurry of new proclamations has been granted this year after the appointment of her replacement, But the SIU's National Lotteries Commission application, submitted in April last year, has been gathering dust. Red tape An Institute for Security Studies (ISS) report on the future of the SIU, released last week, found that the proclamation process is mired in red tape. The resulting delays at the justice department 'have sometimes amounted to several years', according to the ISS. 'This has frustrated the recovery of funds, which can be hidden or dissipate quickly,' the ISS says. 'In turn, this might delay the referral of cases to the NPA [National Prosecuting Authority], resulting in the loss of evidence and slow down disciplinary processes for state employees'. The ISS has recommended that SIU motivations for presidential proclamations should rather be handled by the Presidency. Terrence Manase, spokesperson for the justice ministry, said last week that the SIU's amendment application has not yet reached the minister's office. 'The ministry acknowledges the seriousness of the matter and remains committed to ensuring that all allegations of corruption are addressed appropriately, within the confines of the law,' he said. GroundUp reported in 2023 that the SIU was planning to ask for an extension of its mandate. It was submitted in April 2024. Mashudu Netshikwera, who heads up the SIU's team investigating the NLC, told parliament in May that the application for an extension was submitted almost a year earlier in April 2024. Justice department spokesperson Kgalalelo Masibi said 'the department is currently attending the request for an amendment'. She said the department had 'raised certain concerns with the SIU, which the SIU has since addressed. The department has completed its assessment of the request and will be advising the minister and the Presidency in due course.' Millions in dodgy procurement deals The findings of the independent investigations commissioned by the NLC's new board and executive were key in formulating disciplinary charges against implicated staff, including National Lotteries Commission chief operating officer Phillemon Letwaba and former NLC company secretary Nompumelelo Nene. Among the issues flagged in damning reports by the auditor general and the independent auditors were irregular expenditure on information technology and sky-high spending on lawyers. The NLC struggled to answer a written parliamentary question about its expenditure on legal fees, as key files with details of multimillion-rand litigation expenditure have vanished. Another area of concern is the tens of millions of rand in spending on media and communications, with a disproportionate amount paid to the Sunday World newspaper. Millions of rand in dodgy payments were also made to NLC service providers, including a nearly R500,000 payment to service provider Neo Consulting to investigate a computer hack that never happened. ProEthics, which advised the NLC on ethics when the organisation was overwhelmed by rampant corruption, was used to circumvent procurement processes. The NLC paid ProEthics more than R28.4 million. The company, in turn, said it paid other service providers, which it had no part in appointing, on the NLC's instructions. Bureaucracy not required by SIU Act The Institute for Security Studies report says the SIU is 'unnecessarily hampered' by delays in the administrative processing of presidential proclamations. First, the SIU had to assess complaints it received 'against the requirements of the SIU Act to determine whether it had jurisdiction'. If the complaint met these criteria, the SIU must then 'submit a motivation for a proclamation to the president via the justice department. A directorate in the [department] again assesses the motivation to see whether it meets jurisdictional requirements and is feasible,' the ISS report found. 'If so, the directorate sends it to the director general of the [department], who may escalate it to the deputy minister, the minister, and ultimately the president for approval.' These delays 'frustrate the purpose of the SIU Act, which is to provide for the swift recovery of state funds. The process of approvals by different justice department officials has evolved through a series of executive decisions and is not required by the SIU Act.' SIU owed R1 billion Since 2001, 300 presidential proclamations have been issued, the ISS said. 'Of these, 164 (55%) have been issued since 2018, during President Cyril Ramaphosa's administration. In the 2024-25 financial year alone, 49 proclamations were issued. Five proclamations have been reported to date in the current year.' The SIU gets its funding from two sources: a budget from the justice department, and it can also bill the institutions it investigates for the services provided and retain these funds. But many of its clients, which are all state institutions, were not paying for the SIU's services, as they are required to do. As of March 2024, the SIU had a debt book exceeding R1 billion owed by 272 state institutions, the ISS found. This led to the SIU launching Project Khokela in October 2024, with letters of demand being issued to these institutions for prompt debt settlement. 'Given the high number of new proclamations, the SIU is likely to face financial strain over the next 24 months. If unresolved, its financial reserves could be depleted in the foreseeable future.' This story was first published by
