The Special Investigating Unit has moved decisively to protect public resources meant for water, sanitation and infrastructure, securing arrests in a corruption case affecting vulnerable communities.
Nine individuals and two business entities appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court in the Eastern Cape on charges of fraud, corruption, money laundering and contravention of the Municipal Finance Management Act.
At the centre of the case is the procurement of a municipal “yellow fleet” — six trucks, six sprinkler water tankers and three jet vacuum tankers — equipment intended to support water delivery, sanitation services and infrastructure maintenance for communities served by the Alfred Nzo District Municipality.
These vehicles were not simply assets; they were essential tools meant to help deliver clean water, improve sanitation and strengthen basic service delivery in areas where reliable infrastructure remains critical to public health, dignity and economic participation.
The SIU investigation, conducted under Proclamation R36 of 2017, uncovered serious maladministration linked to a R75 million contract awarded to Kwane Capital (Pty) Ltd. According to the SIU, the municipality paid the full amount without proper budget approval and in violation of municipal procurement regulations.
Investigators found that Kwane Capital misrepresented ownership of the vehicles, unlawfully used the name of Avis Fleet, and induced the municipality into contracts that were invalid and unlawful. Fraudulent roadworthy certification processes were also uncovered, with GPS data showing the vehicles had never attended official testing stations.
As a result, the municipality suffered an actual or potential financial loss of R60.7 million — funding that could have strengthened service delivery, supported infrastructure expansion and improved living conditions for communities dependent on municipal support.
The SIU has referred the matter to the National Prosecuting Authority for criminal prosecution and has instituted civil proceedings in the Special Tribunal to review and set aside the contract and recover lost funds.
These actions represent more than enforcement. They form part of a broader effort to restore integrity in public institutions, ensure accountability in public spending and safeguard resources intended to serve communities.
By pursuing both criminal accountability and financial recovery, the SIU’s intervention helps reinforce public trust, strengthen governance and protect the delivery of essential services that millions of South Africans rely on every day.
