Special Investigating Units And Special Tribunals Act, 1996 (Act No. 74 of 1996)ProclamationsReferral of Matters to Existing Special Investigating UnitsNewcastle MunicipalityProclamation No. R. 75 of 2022 |
Proclamation No. R. 75
22 July 2022
GG 47055
PROCLAMATION NO. R. 75 of 2022
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 Newcastle Municipality situated in Kwa-Zulu Natal Province (hereinafter referred to as “the Municipality");
AND WHEREAS the Municipality 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 the Municipality, 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 the Institutions; |
| (b) | improper or unlawful conduct by employees or officials of the Institutions; |
| (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 the Institutions; 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 2018 and the date of publication of this Proclamation or which took place prior to 1 January 2018 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 the Municipality or the State, in relation to the said matters in the Schedule.
Given under my Hand and the Seal of the Republic of South Africa at Johannesburg this twenty-ninth day of June Two thousand and twenty-two.
M C Ramaphosa
President
By Order of the President-in-Cabinet:
R O Lamola
Minister of the Cabinet
SCHEDULE
| 1. | The procurement of, or contracting for goods, works or services by or on behalf of the Municipality and payments made in respect thereof in a manner that was— |
| (a) | not fair, competitive, transparent, equitable or cost-effective; or |
| (b) | contrary to applicable— |
| (i) | legislation; |
| (ii) | manuals, guidelines, practice notes, circulars or instructions issued by the National Treasury or the relevant Provincial Treasury; or |
| (iii) | manuals, policies, procedures, prescripts, instructions or practices of, or applicable to the Municipality, and any related unauthorised, irregular or fruitless and wasteful expenditure incurred by the Municipality in relation to: |
| (aa) | The refurbishment of DN 700 PC Pipeline and 4No Cross Connections to Parallel DN 600 Steel Pipeline; |
| (bb) | Bid numbers B002-2018/19; B012-2018/19; B014-2018/19; B015-2018/19; B018-2018/19; B007-2018/19; B013-2018/19 and B010-2018/19; |
| (cc) | A Professional service provider for assistance with Revenue Management and Supply Chain Management Solutions (System) for the period of three financial years on or about 26 April 2019; |
| (dd) | Supply and delivery of batteries and battery chargers on or about 31 August 2018; and |
| (ee) | Bid number A015-2019-2020 for the construction of a 2km, 160mm diameter upvc pipeline connection to Soul City. |
| 2. | Maladministration in the affairs of the Municipality in relation to: |
| (a) | Contracts awarded to persons in the Service of the State, contrary to the provisions of Regulation 44 of the Municipal Supply Chain Management Regulations dated 30 May 2005; |
| (b) | Payments made to fictitious employees; |
| (c) | Fruitless and wasteful expenditure incurred as a result of late payments made to Eskom; |
| (d) | Fruitless and wasteful expenditure incurred as a result of late Value Added Tax and Pay As You Earn payments to the South African Revenue Service; |
(e) Salary payments made to former employees after they had left the employ of the Municipality; including the causes of such maladministration;
| 3. | Any irregular, improper or unlawful conduct by— |
| (a) | employees or officials of the Municipality; |
| (b) | applicable suppliers or service providers; or |
| (c) | any other person or entity, |
in relation to the allegations set out in paragraphs 1 and 2 of this Schedule.