Spotlight on corruption: Macpherson says public works graft probe must have ‘consequences’

Parliament was presented with details pertaining to the extent of misconduct within the Department of Public Works and Infrastructure (DPWI).

Officials from the DPWI and the Special Investigations Unit (SIU) appeared before the Portfolio Committee on Public Works and Infrastructure on Friday to report on updates on corruption and maladministration investigations.

Corruption at Public Works

In the meeting, Public Works Minister Dean Macpherson informed MPs that the department’s Governance, Risk, and Compliance (GRC) division and the SIU have made significant strides in uncovering graft.

Macpherson however stressed that merely exposing the corruption was insufficient.

“We must recover what is being stolen from the state and we must see people in prison at the end of the day. We just don’t want to stop the action, but we do want to see consequences,” he said.

The minister highlighted systemic vulnerabilities within the DPWI, including capacity constraints, weak information and communication technology (ICT) security measures, and inefficiencies in supply chain management (SCM).

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“It is these systematic weaknesses that create for not only just unethical behaviour, but criminal behaviour as well,” he stated.

To address these issues, Macpherson said the department was currently bolstering internal controls and implementing robust ICT security measures, including enhanced firewalls and system updates.

He also mentioned plans to blacklist service providers involved in corrupted practices.

Despite these efforts, the minister cautioned that fixing these challenges would take time.

“I’m tired of just responding to issues. I want to fix them, once and for all,” Macpherson added.

Watch the meeting below:

Investigations and recoveries

Deputy Director-General for GRC, Lwazi Mahlangu, shared that 479 investigations have been conducted since 2009, with 35 cases referred to the SIU and South African Police Service (Saps).

Of 81 criminal referrals, 66 remain under investigation, while 15 have been finalised.

“We have a very low percentage in terms of concluding these reports,” Mahlangu said.

Among the most notable cases are allegations stemming from a May 2023 report on the DPWI’s R93 million expenditure on ministerial houses.

The investigation uncovered irregular expenditure of R1.4 million, leading to disciplinary proceedings.

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The department also recovered R1.3 million paid unduly to a service provider.

Additionally, investigations into project mismanagement have revealed significant financial losses.

For example, a probe into infrastructure projects flagged by the Auditor-General identified irregularities leading to the cancellation of 144 projects, with recovery efforts underway.

A particularly high-profile case involves the construction of a magistrate’s office in Mamelodi, where irregularities resulted in a R14 million loss.

Disciplinary processes have been initiated, and the matter has been reported to Saps.

Ongoing Public Works corruption investigations

The department is also looking into irregularities related to the unused Telkom Towers buildings in Pretoria, acquired in 2016 for R700 million, with an additional R200 million spent on renovations.

The buildings remain empty.

“We are in the process of concluding the appointment of a forensic investigator,” said Mahlangu.

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Another investigation concerns the irregular lease of state-owned properties (the National Treasury lease), where unexplained escalation rates in rentals cost the department millions in irregular expenditure.

“The issue is basically the amounts, where we found there was a 59% escalation in relation to the rentals and that amount is about R161 million that was paid to the landlords constituting irregular expenditure.

“That investigation is still underway and now we are at the reporting stages, where we are looking at quality assurance.”

Cybersecurity breach probe

The DPWI is investigating the hacking of its Sage payment system, which led to a loss of R55 million across multiple incidents in March, April, and November 2024.

Investigations involve the Hawks and the State Security Agency (SSA).

The department also initiated an internal investigation, with 39 work laptops from ICT and finance employees being confiscated leading to the suspension of four people.

READ MORE: ‘Expanded looting’: Civil servants steal R14 million from EPWP funds

Three have since returned to work after showing no signs of involvement.

“Further to that, an additional three persons have been issued with representation letters where they have to respond and further action will be taken with regards to the Sage matter,” said Mahlangu.

Nkandla investigation

The SIU’s investigation into the “prestige projects” at former president Jacob Zuma’s Nkandla homestead in KwaZulu-Natal (KZN) was concluded in August this year.

The unit’s head, Andy Mothibi, noted that a referral could lead to the recovery of R155.3 million through court proceedings.

SIU Chief Operations Officer Leonard Lekgetho confirmed that the DPWI had implemented recommendations, and all employees implicated in misconduct were charged.

“Matters were finalised by the department,” Lekgetho told the committee.

MPs unhappy with Public Works corruption

MK party MP Visvin Reddy stated that the findings of SIU and department’s investigations were shocking.

“While we have long suspected corruption within this department, the depth and breath of the irregularities that have been exposed in this report leaves us with absolute disbelief and shock.

“The extent to which public funds were misused and procurement processes flouted is a completely betray and trust of the South African people,” he said.

Reddy called for officials involved to be held accountable.

“We want to see them behind bars. No one is above the law,” the MK party MP added.

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