The Special Investigating Unit (SIU) is seeking to recover R2.2bn from the tender appointment of LTE Consulting Engineers by state-owned water utility Lepelle Northern Water (LNW) for a failed water project in Giyani, Limpopo.
The SIU has instituted a civil claim in the High Court in Polokwane, seeking to set aside the contract that was awarded to LTE.
"Our investigations found that there was an irregular appointment of LTE as there were contraventions of the Constitution, LNW's policy and Treasury regulations," SIU's spokesperson Nazreen Pandor told News24.
It has been widely reported that LTE was appointed without a public tender by LNW. City Press has revealed how former water minister Nomvula Mokonyane had a hand in the direct appointment of LTE to deliver the controversial R2.7bn Giyani water project in the province.
The water project is now subject to an investigation by Public Protector Busisiwe Mkhwebane, after Eyewitness News recently revealed that the costly project – which was meant to supply 55 villages in and around Giyani with water – was incomplete with the water department failing to make payments to contractors until recently.