SIU spending 120 million in looting and corruption crackdown

accreditation
0:00
play article
Subscribers can listen to this article
Special Investigating Unit head Advocate Andy Mothibi.
Special Investigating Unit head Advocate Andy Mothibi.
Tebogo Letsie, Gallo Images, City Press
  • The Special Investigating Unit will spend around R120 million on probes to recover looted money.
  • The SIU’s chief financial officer Andre Gernandt said the cost incurred on investigations at the end of December topped R70 million.
  • The SIU's ongoing probe into the PPE scandals has zoomed in on 2 556 PPE contracts valued at more than R13.3 billion.

The Special Investigating Unit (SIU) is expected to spend around R120 million on recovering funds looted from the state.

Briefing Parliament's Standing Committee on Public Accounts (Scopa), SIU head Andy Mothibi said his unit was not spared from the cuts to government's expenditure.

The SIU's chief financial officer (CFO) Andre Gernandt said the cost incurred on investigations at the end of December topped R70 million.

"This amount is made up of different resources in the SIU. Of all our operational resources, there are about 125 full-time equivalents currently working on the Covid-19 investigations out of a possible 300. We estimated that figure because at the moment they are working full-time on it. The [R70 million figure] could go up to R120 million at end of the financial year in March 2021. These amounts exclude the legal costs," he said.

READ | Those guilty of PPE corruption will be found and prosecuted, Ramaphosa vows

Gernandt said they have engaged National Treasury on whether the unit can get central funding.

"We were, however, not successful and up to date, of the approximately 84 institutions that are currently being investigated, we have not been able to sign many of the letters of engagement and in fact there is a general push back on that. We would still further engage National Treasury to see is there anyway we could receive central funding on our costs incurred. This is on the R120 million and civil litigation costs," he said.

Contracts

The SIU's ongoing probe into the PPE scandals has zoomed in on 2 556 PPE contracts valued at more than R13.3 billion.

Last week, Mothibi announced their probe found a complete breakdown of the checks and balances in the procurement of personal protective equipment (PPE).

It also found that names of service providers were determined before any supply chain process commenced and, in some instances, PPE was packaged under cloned labels.

Mothibi said allegations were received in respect of 189 state institutions and entities.

"The SIU obtained documents in respect of the approved allegations and from that, 2 556 PPE contracts awarded for Covid-19 related services were identified for investigation. These contracts were awarded to 1 774 service providers. By value, 26% of these contracts have been finalised, 51% are currently being assessed and 22% have yet to commence," he said.

READ ALSO | Court action is not about Bandile Masuku wanting his job back, says lawyer

Mothibi said the National Prosecuting Authority (NPA) has provided prosecutors to guide criminal investigations and will prioritise consideration to the matters referred.

"While the investigations are still underway and we continue to submit reports to the president, we continue to execute on the outcomes and follow up on the referrals to ensure that there is consequence management.

"We are focusing on ensuring that there is accountability at all levels of the administration including executive authority accountability. Our collaboration and cooperation with other agencies in the Fusion Centre has proved valuable," he said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
Facebook is facing a fresh crisis after a former employee turned whistle-blower leaked internal company research. Do you still use Facebook?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, the benefits outweigh the risk for me
32% - 2633 votes
No, I have deleted it
37% - 3117 votes
Yes, but I am considering deleting it
31% - 2564 votes
Vote
Rand - Dollar
14.55
-0.3%
Rand - Pound
20.05
-0.2%
Rand - Euro
16.92
-0.2%
Rand - Aus dollar
10.90
-0.4%
Rand - Yen
0.13
-0.3%
Gold
1,775.87
+0.4%
Silver
23.84
+0.8%
Palladium
2,102.00
+0.3%
Platinum
1,048.50
+0.5%
Brent Crude
85.08
+0.9%
Top 40
60,190
-0.0%
All Share
66,776
-0.1%
Resource 10
63,288
-0.8%
Industrial 25
84,981
+0.2%
Financial 15
14,022
+0.8%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE