Preliminary findings from the Special Investigating Unit into the 2020 streetlight contracts in Nelson Mandela Bay have uncovered fraud, corruption, and organized crime. Minister Velenkosini Hlabisa informed Parliament that officials violated supply chain rules and financial laws. The probe, initiated last July, involves three companies and over 10 officials.
The Special Investigating Unit (SIU) has exposed serious irregularities in the Nelson Mandela Bay metro's 2020 streetlight contracts. According to Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa, the probe revealed contraventions of the Prevention and Combating of Corrupt Activities Act and the Prevention of Organised Crime Act. Hlabisa shared these details in a written parliamentary response, based on the SIU's preliminary report.
President Cyril Ramaphosa authorized the investigation in July 2024, targeting maladministration and financial losses related to the supply and payment for streetlighting and floodlighting luminaires. The SIU determined that the procurement process was unfair, non-competitive, and non-transparent, violating supply chain management regulations, finance policies, and the Municipal Finance Management Act. Three companies and their directors, along with more than 10 municipal officials, are implicated, though names remain undisclosed pending further proceedings.
The SIU is preparing disciplinary referrals to the municipality, criminal referrals to the National Prosecuting Authority, and blacklisting of service providers. It also plans systemic recommendations and civil litigation to void the contracts. The metro has cooperated by providing requested documents.
Whistleblowers played a key role; in 2024, Tukela Zamani filed a criminal case after an internal report highlighted R24-million in irregular expenditure by the electricity department. This has left around 10,000 streetlights unrepaired, exacerbating risks in a department already facing R1.3-billion in losses from non-revenue electricity issues.
The electricity department has seen turmoil: former executive director Luvuyo Magalela resigned in August 2024 amid pylon collapses causing outages. Acting director Tholi Biyela quit earlier this year after threats, having outlined a strategy noting that 'corrupt activities by some employees have eroded public trust and weakened internal controls.' Other probes include suspensions over R10-million copper cable orders and fraud following a Coega substation explosion.
Last year, new contracts were approved for streetlight repairs amid political pressure, though progress remains unclear.
