SIU concludes Makana investigation probe, refers two cases to NPA

The Special Investigating Unit (SIU) has concluded its investigation into Makana Local Municipality and referred two matters to the National Prosecuting Authority (NPA), the unit confirmed to The Baseline this week, marking the most significant development yet in a probe into allegations of maladministration and procurement irregularities at the municipality.

President Cyril Ramaphosa signed Proclamation 207 of 2024 on 10 September 2024, authorising the SIU to investigate allegations of serious maladministration involving seven municipal tenders. The proclamation, published in the Government Gazette the following month, covers alleged unlawful or improper conduct dating back to 1 January 2019, as well as any related activities before or after that period linked to the same contracts or individuals.

The investigation examined contracts including the Makana Bulk Sewer Upgrade Phase 1, professional engineering services for a groundwater development project, implementing agents for water conservation and demand management, the reappointment of MBB Consulting for the same programme, the electrification of the greater Makana area’s 11kV network and the operation of the municipal landfill site.

Several of the contracts had previously been flagged by the Auditor-General after they were allegedly awarded without competitive bidding despite exceeding the R200,000 threshold that ordinarily requires an open bidding process.

The proclamation also empowered the SIU to investigate whether payments were made in a manner that was not fair, equitable, transparent, competitive or cost-effective, as required by procurement legislation. It further authorised investigators to examine possible unauthorised, irregular or wasteful expenditure, misconduct by municipal officials and service providers, and to institute civil proceedings to recover financial losses suffered by the municipality or the State.

The investigation escalated in November 2024 after the SIU obtained a search warrant from the Makhanda Magistrate’s Court, citing the municipality’s alleged failure to cooperate with investigators. On 1 November 2024, SIU investigators, assisted by the Hawks, searched municipal offices and seized laptops, mobile phones, hard drives and procurement documents relating to tenders awarded between January 2019 and October 2024.

In a written response to The Baseline dated 17 July 2026, SIU spokesperson Selby Makgotho confirmed that the investigation has now been completed and that a Final Presidential Report has been submitted.

“The SIU has concluded its investigation into the matters identified in Proclamation 207 of 2024 and has drafted a Final Presidential Report. The SIU has made two referrals to the National Prosecuting Authority (NPA) and an administrative recommendation to the municipality and the National Treasury. Yes, a matter was referred to further criminal investigation, and the SIU is considering civil litigation,” Makgotho said.

The SIU said its investigation had been hampered by shortcomings in the municipality’s record keeping.

“The matters identified in the proclamation were addressed based on the limited documentation available. In general, and as per the norm with most government institutions, the lack of documentation remains a stumbling block,” the unit said.

Whether the public will be able to scrutinise the SIU’s findings remains uncertain.

According to the SIU, the Final Presidential Report has already been submitted to President Cyril Ramaphosa, who will decide whether it should be made public.

“The President’s prerogative is to decide on its public release,” the unit said.

The referrals to the NPA mean prosecutors will now decide whether there is sufficient evidence to pursue criminal charges, while the SIU is also considering civil proceedings to recover any financial losses identified during its investigation.

The outcome of those processes could determine whether one of the Eastern Cape’s most troubled municipalities finally faces accountability for years of procurement failures repeatedly identified by oversight bodies.