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The Standing Committee on the Auditor-General (SCOAG) has called for stronger coordination amongst law enforcement agencies in the fight against corruption and faster recovery of lost public funds.
 
The committee today received briefings from the Special Investigating Unit (SIU), the Minister of Justice and Constitutional Development and the Department of Justice and Constitutional Development on the progress made in matters referred by the Auditor-General of South Africa (AGSA) for investigation. Such investigations by the SIU must be proclaimed by the President on the advice of the Minister.
 
The SIU told the committee that 32 material irregularities identified by the AGSA have now been referred to the SIU. Of these, eight investigations have already been finalised, nine are currently under active investigation, while several others are at various stages of assessment and proclamation processing.
 
The SIU reported that investigations arising from AGSA referrals have already resulted in referrals for criminal prosecution, disciplinary action and civil litigation. More than R6.3 million has already been recovered, while further recovery processes are underway in matters involving more millions.
 
Some of the ongoing SIU investigations include:

The Department of Defence and Military Veterans contracts linked to inventory verification and an asset management system valued at R922 million. The SIU informed the committee that despite significant expenditure, the department still does not have a complete asset register. The SIU indicated that an official admitted to receiving kickbacks and that preliminary financial analysis points to possible overpayments of approximately R68.5 million.

The Bushbuckridge Local Municipality in Mpumalanga, where the SIU is investigating a road paving project worth more than R11 million. The investigation has already uncovered evidence suggesting that the successful bidder may have committed fraud during the tender process, while another bidder allegedly submitted a false B-BBEE certificate. The SIU also raised concerns about possible overinflation of project costs. Criminal referrals have already been made to the National Prosecuting Authority, while further disciplinary, civil and blacklisting processes are being prepared.

The committee welcomed the progress made but expressed concern about delays in processing some proclamations and investigations. The Department of Justice and Constitutional Development explained that capacity constraints and the complexity of some matters have contributed to delays but assured the committee that additional capacity is being introduced to improve turnaround times. The undertaking was also given that the SIU will also engage with the department to resolve certain matters which also contribute to delays in proclamations.
 
The Minister of Justice and Constitutional Development, Ms Mmamoloko Kubayi, agreed with the committee that government institutions involved in combating corruption must operate in a more coordinated and synchronised manner.
 
The Minister told the committee that better coordination between the SIU, the Directorate for Priority Crime Investigation (DPCI/Hawks), the National Prosecuting Authority and AGSA will strengthen the state’s ability to deal with corruption.
 
The committee believes that since the AGSA has done its work of identifying material irregularities, law enforcement agencies should move with urgency to ensure there is accountability and public money is recovered wherever possible.

Issued by the Parliamentary Communication Services on behalf of the chairperson of the Standing Committee on the Auditor-General, Wouter Wessels