Special Investigating Units And Special Tribunals Act, 1996 (Act No. 74 of 1996)ProclamationsReferral of Matters to Existing Special Investigating UnitDenel SOC LtdProclamation No. R. 32 of 2019 |
Proclamation No. R. 32
5 July 2019
GG 42562
PROCLAMATION NO. R.32 OF 2019
by the
PRESIDENT of the REPUBLIC of SOUTH AFRICA
WHEREAS allegations as contemplated in section 2(2) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No. 74 of 1996) (hereinafter referred to as "the Act"), have been made in respect of the affairs of the Denel SOC Ltd and business divisions in which Denel is a majority shareholder (hereinafter jointly referred to as "Denel");
AND WHEREAS Denel or the State suffered losses that may be recovered;
AND WHEREAS I deem it necessary that the said allegations should be investigated and civil proceedings emanating from such investigation should be adjudicated upon;
NOW, THEREFORE, I hereby, under section 2(1) of the Act, refer the matters mentioned in the Schedule, in respect of Denel, for investigation to the Special Investigating Unit established by Proclamation No. R. 118 of 31 July 2001 and determine that, for the purposes of the investigation of the matters, the terms of reference of the Special Investigating Unit are to investigate as contemplated in the Act, any alleged—
| (a) | serious maladministration in connection with the affairs of Denel; |
| (b) | improper or unlawful conduct by the employees or officials of Denel; |
| (c) | unlawful appropriation or expenditure of public money or property; |
| (d) | unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing upon State property; |
| (e) | intentional or negligent loss of public money or damage to public property; |
| (f) | offence referred to in Parts 1 to 4, or section 17, 20 or 21 (in so far as it relates to the aforementioned offences) of Chapter 2 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), and which offences were committed in connection with the affairs of Denel; or |
| (g) | unlawful or improper conduct by any person, which has caused or may cause serious harm to the interests of the public or any category thereof, |
which took place between 1 January 2015 and the date of publication of this Proclamation or which took place prior to 1 January 2015 or after the date of publication of this Proclamation, but is relevant to, connected with, incidental or ancillary to the matters mentioned in the Schedule or involve the same persons, entities or contracts investigated under authority of this Proclamation, and to exercise or perform all the functions and powers assigned to or conferred upon the said Special Investigating Unit by the Act, including the recovery of any losses suffered by Denel or the State, in relation to the said matters in the Schedule.
[Date of extension of period substituted by section (a) of of Proclamation No. R.57, GG 42828, dated 8 November 2019]
Given under my Hand and the Seal of the Republic of South Africa at Pretoria this 22nd day of October Two thousand and Nineteen.
CM Ramaphosa
President
By Order of the President-in-Cabinet:
TM Masutha
Minister of the Cabinet
SCHEDULE
| 1. | The procurement of, or contracting for― |
| (a) | IT security assessment services; |
| (b) | services to develop a white paper relating to the validity of advance payment bank guarantees on all contracts entered into by Denel and the Armaments Corporation of South Africa SOC Ltd; |
| (c) | legal services; or |
| (d) | steel fabrication services and steel fabricated goods, |
by or on behalf of Denel, and payments made in respect thereof in a manner that was—
| (i) | not fair, competitive, transparent, equitable or cost-effective; or |
| (ii) | contrary to applicable― |
| (aa) | legislation; |
| (bb) | manuals, guidelines, practice notes, circulars or instructions issued by the National Treasury; or |
| (cc) | manuals, policies, procedures, prescripts, instructions or practices of, or applicable to Denel, |
and any related losses or irregular or fruitless and wasteful expenditure incurred by Denel or the State as a result thereof.
| 2. | The awarding of bursaries by Denel contrary to applicable policies, procedures, prescripts, practices of, or applicable to Denel that regulate the awarding of such bursaries and any related losses or irregular or fruitless and wasteful expenditure incurred by Denel or the State as a result thereof. |
| 2A | Unlawful, irregular or unapproved measures or practices in relation to the misappropriation of proprietary and intellectual property rights in Denel's Air-to-Air missiles, Stand-off Weapons, Surface Target Missiles, Air Defence and Unmanned Aerial Vehicle systems. |
[Schedule (2A) inserted by section (b) of Proclamation No. R.57, GG 42828, dated 8 November 2019]
| 3. | Any unlawful or irregular conduct by employees and officials of Denel or any other person or entity in relation to the allegations set out in paragraphs 1, 2 or 2A of this Schedule. |
[Schedule (3) substituted by section (c) of Proclamation No. R.57, GG 42828, dated 8 November 2019]