President Cyril Ramaphosa has authorised the Special Investigating Unit (SIU) to investigate five tenders awarded by the Eastern Cape Department of Public Works and Infrastructure amid allegations of serious maladministration, corruption, fraud and irregular expenditure.
Ramaphosa signed Proclamation 344 of 2026, giving the SIU a mandate to scrutinise the procurement, contracting and payment processes linked to the tenders, as well as recover any financial losses suffered by the State or the department.
Five contracts under investigation
The investigation covers a range of infrastructure and security-related contracts.
Among those under scrutiny is the Phase 1 upgrading of the 10km stretch of Road DR08125 between the N2 and Sipetu Hospital.
The SIU will also investigate urgent re-gravelling work on roads DR18033 and DR08288, as well as emergency gravelling on DR08076 to address flood damage to gravel roads in the Elundini Local Municipal Area.
Another contract concerns emergency preparations involving a road, platform and parking area for the funeral of former Gauteng Economic Development MEC Nkosiphendule Kolisile.
The fifth involves the appointment of service providers to provide security services for the department’s head office clusters for 36 months.
SIU to scrutinise how tenders were awarded
The investigation will not only focus on the final contracts, but on the processes that led to their award and the payments that followed.
SIU spokesperson Selby Makgotho said the unit would determine whether procurement, contracting and related payments were conducted fairly and competitively and whether they complied with applicable legislation and Treasury requirements.
“The SIU will investigate whether the procurement process, contracting and related payments were conducted in a manner that was unfair, non-competitive, non-transparent, inequitable or not cost-effective,” Makgotho said.
Investigators will also assess compliance with National Treasury and Provincial Treasury instructions, as well as the department’s own policies, procedures and guidelines.
The SIU will further examine whether officials, employees, agents, contractors or other entities may have engaged in improper or unlawful conduct to benefit themselves or others.
Fraud and irregular expenditure in the spotlight
The proclamation gives investigators a broad mandate to examine allegations of fraud, corruption and maladministration connected to the tenders.
It will also look into any unauthorised, irregular, fruitless or wasteful expenditure incurred by the department or the State.
This is particularly significant because public works contracts directly affect the delivery and maintenance of essential infrastructure, including roads that communities rely on to access schools, healthcare facilities, businesses and other services.
The investigation therefore has implications beyond the individual tenders – it is also intended to establish whether public money was properly spent on infrastructure projects and emergency interventions.
SIU can pursue recovery of State funds
The SIU’s powers extend beyond investigating wrongdoing.
Under the Special Investigating Units and Special Tribunals Act, 1996, the unit can institute civil proceedings before the Special Tribunal or the High Court where wrongdoing is uncovered.
Makgotho said the SIU Act empowers the unit to pursue civil proceedings to address wrongdoing arising from corruption, fraud or maladministration and to recover losses suffered by the State.
The probe consequently could result in attempts to recover public money, challenge unlawful conduct and pursue those found to have benefited improperly.
Why the investigation matters
The Eastern Cape relies heavily on public infrastructure spending to address road deterioration, flood damage and other service-delivery challenges, particularly in rural communities.
The contracts now under investigation include both planned road upgrades and emergency interventions, making transparency in their awarding and implementation particularly important.
The SIU investigation does not mean that those involved have been found guilty of wrongdoing. Its purpose is to establish whether the allegations are supported by evidence and whether procurement rules and public-finance laws were followed.
As the investigation progresses, the SIU will determine whether further action, including civil recovery proceedings or referrals to other law-enforcement authorities, is warranted.
