SIU investigations saved South Africa R8 billion last year

The Special Investigating Unit (SIU) says it saved the South African government about R8 billion in the 2023/24 financial year.

It also recovered actual cash amounting to R2.28 billion – the most it has done in its 27-year history.

These results stem from effective investigations into corruption and maladministration, speedy litigation, and recovery of funds, it said on Tuesday.

SIU sets aside dodgy contracts

In addition to these recoveries, the SIU prevented a further R2.32 billion in potential state losses and secured cash to be recovered from the acknowledgement of debt and admission of liability agreements to the value of R1.6 billion.

“In our pursuit of rectifying irregular administrative decisions, the SIU successfully set aside contracts worth over R2.13 billion through the Special Tribunal and the High Court of South Africa,” the independent statutory body said.

“This legal action ensures that public funds are recovered, not squandered, and redirected to serve their intended public purposes.

“This achievement underscores the SIU’s ongoing commitment to fighting corruption, maladministration, malpractice and safeguarding state assets.”

Addressing members of the Portfolio Committee on Justice and Constitutional Development from the Parliament of South Africa on the SIU’s 2023/24 Annual Report, SIU Head Advocate Andy Mothibi highlighted the significant role of investigations in entities such as Transnet, Eskom and the National Student Financial Aid Scheme (Nsfas) as the most significant contributors to these recoveries.

The Transnet recoveries amounted to R710 million, Eskom amounted to R500 million, and the Nsfas investigation totalled R191 million by the end of the 2023/24 financial year.

Mothibi also emphasised the success of the Medico-Legal investigation, which accounted for R1.98 billion of the R2.32 billion in prevented losses.

In terms of matters, contracts and administrative decisions set aside or deemed invalid, contracts emanating from the Eskom investigation contributed the most, with a contract value of R1.2 billion.

SIU also investigates Eskom, National Lottery and Prasa

During the 2023/24 period, the SIU closed 1,919 investigations under published proclamations and submitted 26 comprehensive reports to the president outlining the outcomes of investigations.

These reports include, amongst others, the investigations about the National Lotteries Commission, Passenger Rail Agency of South Africa (Prasa), the Masters’ Office, and Nsfas.

The SIU has referred evidence for the institution or defence/opposition of civil proceedings worth R4.8 billion.

This includes, amongst others, matters regarding R2 billion from Eskom, R834 million from Transnet, R29.1 million from eThekwini Metropolitan Municipality and R48.4 million from the City of Cape Town.

Over the course of the year, lifestyle audits were conducted at Prasa, the Gauteng Office of the Premier, and the Free State Department of Community Safety, Roads, and Transport.

In line with the SIU Act, 583 criminal referrals were made to the National Prosecuting Authority (NPA), ensuring accountability prosecution of officials, private entities and individuals involved in corrupt activities.

To ensure accountability for government officials involved in wrongdoing, SIU referred 297 officials to respective state institutions for disciplinary action.

“As the SIU concludes the final year of its five-year turnaround strategy, we remain resolute in our mission to combat corruption, fraud, maladministration and malpractice in the public sector,” it said.

The SIU also revealed it received an unqualified audit outcome for its financial performance from the Auditor-General.