President Ramaphosa authorises investigation into Newcastle Municipality

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President Cyril Ramaphosa signed a proclamation authorising the Special Investigating Unit (SIU) to investigate serve allegations of corruption and maladministration against Newcastle Municipality’s previous administration.

In addition to the SIU investigating the affairs of the Newcastle Municipality, the President’s proclamation states that any financial losses suffered by the State as a result of maladministration must be recovered.

Taking a closer look at the investigation; Proclamation R.75 of 2022 authorises the SIU to investigate the procurement of, or contracting for goods, works or services by or on behalf of the Newcastle Municipality and payments made in respect thereof in a manner that was not fair, competitive, transparent, equitable or cost-effective.

  • The refurbishment of DN 700 PC Pipeline and 4No Cross Connections to Parallel DN 600 Steel Pipeline.
  • A Professional service provider for assistance with Revenue Management and Supply Chain Management Solutions (System) for the period of three financial years on or about 26 April 2019.
  • Supply and delivery of batteries and battery chargers on or about 31 August 2018.
  • The construction of a 2km, 160mm diameter UPVC pipeline connection to Soul City.

Furthermore, the SIU will investigate:

  • Maladministration in the affairs of the Municipality in relation to Contracts awarded to persons in the Service of the State, contrary to the provisions of Regulation 44 of the Municipal Supply Chain Management Regulations dated 30 May 2005.
  • Payments made to fictitious employees.
  • Fruitless and wasteful expenditure incurred as a result of late payments made to Eskom.
  • Fruitless and wasteful expenditure incurred as a result of late Value Added Tax and Pay As You Earn payments to the South African Revenue Service.
  • Salary payments made to former employees after they had left the employ of the Municipality; including the causes of such maladministration.

According to the Proclamation, the SIU will also look into alleged serious, improper or unlawful conduct by officials or employees of the Newcastle Municipality, unlawful appropriation or expenditure of public money or property.

All unlawful, irregular or unapproved acquisitive acts, transactions, measures or practices having a bearing upon State property. Additionally, they will investigate, intentional or negligent loss of public money or damage to public property, (referred to in Parts or sections of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004).)

Furthermore, the Proclamation covers offences which took place between 1 January 2018 and the date of publication of the Proclamation (22 July 2022), or which took place prior to 1 January 2018 or after the date of publication of the Proclamation. 

The Mayor’s Office and the Deputy Mayor were contacted for comment but were unavailable at the time of the article’s publication.

With this exciting news coming to Newcastle, share your views in the comment section below.

10 thoughts on “President Ramaphosa authorises investigation into Newcastle Municipality

  1. Should have panned very long ago
    Unfair practices for which honest taxpayers, in cluding the elderly had to finance the bill while the fatcats were filling their pockets

  2. It’s about time, and all who are responsible must be criminally charged as well…this mayor working his butt off to make sure Newcastle rises again. Let’s clean our Municipality up for good now.

  3. Hopefully there will be an investigation with regards to the mass dismissal of there employees and hopefully see justice for those affected by those matters.

  4. About time this is being done, its way overdue. But does this investigation mean that the guilty ones be brought to book or as per normal just swept under the rug.
    We all will just have to wait and see.

  5. It’s long overdue, I personally accept the proclamation. In 2019 the deputy mayor drove an official vehicle while under intoxicating at odd hours. The mayor and the speaker covered it up. By saying the deputy mayor was under attack.

  6. Long overdue. However it remains to be seen whether there will be any successful prosecutions,imprisonment and recovery of looted funds.

  7. Proclamation should have been done by 2012. When there was still Afzul. Who stole Newcastle money and ran like Gupta’s to Dubai. Vish you should be the first to be arrested, you have been doing
    this dirty work for years buying every mayor coming in at expense of others. Mayisela you will follow, Mswane and many more jail and orange overalls are waiting for you. We have been waiting for this opportunity to emerge. Halala Cyril.

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