Latest news with #R67m
The Citizen
4 days ago
- Business
- The Citizen
SIU obtains R67m recovery order against plumbing contractor
The Special Investigating Unit (SIU) has secured a recovery order of R67m against a plumbing contractor associated with the Department of Public Works, preventing a potential loss of R33m. 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. – Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
TimesLIVE
6 days ago
- Politics
- TimesLIVE
Special Tribunal sets aside R67m public works plumbing contracts
The Special Tribunal has declared contracts worth R67m awarded by the department of public works and infrastructure to Kroucamp Plumbers invalid and unlawful and ordered the company to refund the department. 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.
IOL News
02-07-2025
- Business
- IOL News
Government pensions administrator rebuffs allegations of financial mismanagement
The GPAA is a government component which reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF), the largest pension fund in Africa. Image: Sipplied The Government Pensions Administration Agency (GPAA) has responded to recent concerns surrounding a document that has raised eyebrows within the public domain. A week ago, the Public Service and Commercial Union of South Africa (PSCU) raised alarm over alleged financial mismanagement of pension funds amounting to more than R500 million at the GPAA. According to a preliminary internal audit report for the 2024/25 financial year, compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services, there are a number of key governance concerns at the GPAA, which the auditors have brought to the attention of management to ensure sound governance. The GPAA is a government component which reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF), the largest pension fund in Africa. It thus administers the pension affairs of approximately 1.7 million government employees and pensioners, as well as the affairs of their spouses and dependants. The report found an apparent discrepancy between the reported R15.3 million irregular expenditure and the R30.8m logged in the internal register. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading There was also an innocuous purchase order of R67m, which ballooned into a staggering R495m lease liability, allegedly signed post-audit on 23 May 2025 but backdated to commence on 31 July 2024. The report also raised serious concerns regarding R11.9m in prepayments, an additional R6.8m for undelivered uniforms, and a R12m NPS system devoid of deployment evidence. The PSCU has now demanded evidence of Supply Chain Management compliance and the National Treasury approval over all these allegations, and requests all pertinent contracts, invoices, and approvals regarding multiple contracts, alongside confirmation of any forensic investigations initiated as per the audit recommendations. It wrote a letter to the GPAA CEO, Kedibone Madiehe, a fortnight ago requesting clarification and remedial measures in response to the report. However, the GPAA said no such letter has been received by the GPAA's CEO, or her office. The GPAA told Business Report this week that the document in question was merely a preliminary internal audit report still in progress and was illegally obtained, shared, and published, further complicating the discourse surrounding its contents and validity. GPAA spokesperson, Mack Lewele also said the annual financial statements will be released as part of the Annual Report as soon as they are finalised and approved for publishing. 'It is a preliminary internal audit report that we are working on as per normal audit process (Annual Financial Statement). The document was illegally obtained, shared and published. It is an internal, classified working document that is neither complete nor signed off for distribution,' Lewele said. 'A full picture will emerge when the audit process is complete and signed off and at that point we will be in a position to comment on these matters or answer any question. 'The fact that it was illegally accessed and shared makes it impossible for us to comment on it, particularly the incompleteness thereof. We will invoke the relevant procedures to deal with the illegal distribution of the document.'
TimesLIVE
27-06-2025
- Politics
- TimesLIVE
Germany scraps funding for sea rescues of migrants
Germany is cutting financial support for charities that rescue migrants at risk of drowning in the Mediterranean, saying it will redirect resources to addressing conditions in source countries that spur people to leave. For decades, migrants driven by war and poverty have made perilous crossings to reach Europe's southern borders, with thousands estimated to die every year in their bid to reach a continent grown increasingly hostile to migration. "Germany is committed to being humane and will help where people suffer but I don't think it's the foreign office's job to finance this kind of sea rescue," foreign minister Johann Wadephul told a news conference. "We need to be active where the need is greatest," he added, mentioning the humanitarian emergency in war-shattered Sudan. Under the previous left-leaning government, Germany began paying around €2m (R41.87m) annually to non-governmental organisations carrying out rescues of migrant-laden boats in trouble at sea. For them, it has been a key source of funds: Germany's Sea-Eye, which said rescue charities have saved 175,000 lives since 2015, received around 10% of its total income of around €3.2m (R67m) from the German government.
IOL News
23-06-2025
- Business
- IOL News
Public sector union raises alarm over severe financial mismanagement of pension funds
the GPAA administers the pension affairs of approximately 1.7 million government employees and pensioners, as well as the affairs of their spouses and dependants. Image: File Photo The Public Service and Commercial Union of South Africa (PSCU) has issued a stark warning regarding the alleged financial mismanagement of pension funds amounting to more than R500 million at the Government Pensions Administration Agency (GPAA). In a letter to the GPAA CEO Kedibone Madiehe over the weekend, the PSCU requested clarification and remedial measures in response to the troubling findings of the pension administrator's Internal Audit Report for the 2024/25 financial year. The GPAA is a government component which reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF), the largest pension fund in Africa. It thus administers the pension affairs of approximately 1.7 million government employees and pensioners, as well as the affairs of their spouses and dependants. The internal audit report was compiled by Abacwaningi Business Solution (ABS) Audit & Advisory Services and found a raft of key governance concerns, which they brought to the attention of management to ensure sound governance. According to the PSCU secretary general, Tahir Maepa, this report not only highlights gross financial mismanagement but also hints at potential criminal conduct that necessitates urgent strategic intervention. 'The report reveals severe financial mismanagement, governance failures, and potential criminal conduct that demand urgent intervention,' said Maepa in the letter. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The PSCU is questioning the apparent discrepancy between the reported R15.3 million irregular expenditure and the R30.8m logged in the internal register. The union is pressuring for a full disclosure of the irregular expenditure report to understand this contradiction. The union pointed to a seemingly innocuous purchase order of R67m, which ballooned into a staggering R495m lease liability. It raised questions over the motivations behind signing this contract post-audit (23 May 2025), complete with a backdated commencement date (31 July 2024). The leasing agreement was concluded between LCS and GPAA, signed by Lerato Molefi from LCS and previous acting financial officer, Kgaile Molebatsi. 'Not only does this contract commit GPAA to a very expensive project without budget, the current and future objectives by GEPF and GPAA to modernise were not considered,' reads the audit report. 'How does a purchase contract of R67 135 442 translate to an additional R428 255 112.72, making this contract a R495 390 554 project, half a billion rands?' The PSCU is now demanding evidence of Supply Chain Management compliance and the National Treasury approval. The PSCU also raised serious concerns regarding R11.9m in prepayments, an additional R6.8m for undelivered uniforms, and a R12m NPS system devoid of deployment evidence. It said action was needed on this to recoup these substantial losses. According to the union, member data appeared to have been shared unlawfully with service providers, exemplifying a gross breach of the Protection of Personal Information Act (POPIA). It alleged that ICT projects were executed without ICT department oversight, risking system integrity. Provide all contracts, invoices, and approval documents for the LCS, Jicho, LSG, and Shula contracts. The PSCU now requests all pertinent contracts, invoices, and approvals regarding multiple contracts, alongside confirmation of any forensic investigations initiated as per the audit recommendations. The union has taken a firm stance, declaring that a written response is required within a mere seven working days. Should there be no satisfactory reply, the union warned of escalating the matter to various governmental watchdogs, including the Minister of Finance, the Standing Committee on Public Accounts (Scopa), and the Public Protector, alongside the Hawks—South Africa's Directorate for Priority Crime Investigation. Madiehe and the GPAA were not immediately contactable over the weekend. The 66-page audit report by the ABS Audit & Advisory Services confirmed the concerns raised by the PSCU by giving each of the The auditors recommended, among others, that all contracts issued without budget availability be regulated by seeking approval from the GEPF and that all contracts be vetted by GPAA legal chief director and amended to include risk management clauses to protect the GPAA. 'We advise that consistent and continuous compliance is required to ensure reasonable reliance on controls currently in place; and to ensure the consistent attainment of business objectives, and to meet the requirements of the laws and relevant regulations. Furthermore, where the management of risk, control and governance is considered requiring improvement, management should ensure that the residual risks and management concerns are appropriately addressed,' concluded the auditors. 'By addressing the weaknesses that have been identified, this will ensure that the controls implemented within the Government Pensions Administration Agency and its related processes are improved.' BUSINESS REPORT
