Special Tribunal cancels R85 million KwaZulu-Natal-Mozambique border wall tender due to fraud
via The Citizen2 min read
The Special Tribunal has nullified an R85 million tender awarded to ISF Shula Joint Venture for the construction of a concrete barrier wall along the KwaZulu-Natal-Mozambique border. The Special Investigating Unit SIU found that the contractor used fraudulent documents, failed to meet mandatory requirements, and abandoned the project after receiving R84 million. The KwaZulu-Natal department of transport commissioned the wall in response to community concerns about widespread cross-border crime, specifically the smuggling and trafficking of vehicles into Mozambique. The SIU's investigation, confirmed by the Tribunal, revealed that only 5.29km of the planned 8km wall was erected, and associated works were left unfinished. This necessitated an additional R62 million tender for another company to complete the wall. The SIU also exposed that ISF Shula Joint Venture used a fraudulent broad-based black economic empowerment certificate, submitted an expired letter of good standing, and failed to comply with financial capacity requirements. The Tribunal's ruling emphasizes the constitutional imperative for fair, transparent, competitive, and cost-effective government procurement. The SIU plans to recover the money paid and has directed ISF Shula Joint Venture to repay all profits derived from the contract, with an independent expert to determine the amount. The SIU will continue to investigate and protect the integrity of public procurement, as mandated by President Cyril Ramaphosa's
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National Treasury has unfrozen funds for 42 municipalities, including the City of Johannesburg, and will release equitable share grants for 69 municipalities once they implement corrective financial measures. Deputy Minister of Finance Ashor Sarupen stated that the withholding of grants for municipalities flagged for issues like questionable financial decisions and unfunded budgets was not punitive, but aimed at encouraging behavioral correction. Municipalities must investigate fruitless, unauthorized, and irregular expenditure, ensure consequence management for fraud, and service debts to providers like Eskom and water boards. Sarupen noted that municipal debt to Eskom exceeds R100 billion. For municipalities claiming financial struggles, Treasury offers to release a portion of funds upon proof of payment to creditors, or upon signing credit agreements. The Deputy Minister emphasized that not holding municipalities accountable would lead to worse consequences for residents, such as reduced water pressure and load shedding. The mayor of Johannesburg, Dada Morero, reportedly met with Minister of Finance Enoch Godongwana to discuss the city's corrective actions, followed by an extraordinary council meeting to discuss disciplinary action against senior officials, aimed at demonstrating the city's commitment to addressing corruption and wasteful expenditure to the National Treasury.
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Gauteng South Director of Public Prosecutions Advocate Andrew Chauke has been cleared by the Nkabinde Inquiry, a year after his suspension on July 20, 2025. The suspension followed allegations by then-NPA boss Shamila Batohi regarding questionable decisions made by Chauke. These included his alleged initial reluctance to prosecute Duduzane Zuma for culpable homicide in a 2014 incident that resulted in a death, and questions about why former Crime Intelligence head Richard Mdluli was not prosecuted on a murder charge related to a 1999 shooting. The Randburg Magistrate鈥檚 Court acquitted Zuma of culpable homicide in 2019, and Mdluli was cleared of murder but found guilty of kidnapping and assault. President Cyril Ramaphosa established the Nkabinde Inquiry on September 29, 2025, to determine Chauke's fitness for office. The panel, chaired by Justice Baaitse Elizabeth Nkabinde, found no credible evidence to support allegations that Chauke took prosecutorial decisions as alleged in the Cato Manor matter or acted unlawfully. The panel also found Chauke鈥檚 decision to provisionally withdraw murder charges against Mdluli and refer the matter to an inquest was not irrational. The Presidency confirmed on Wednesday that President Ramaphosa communicated the findings to Chauke, stating that there is no basis to conclude Chauke is unfit to hold office. Presidential spokesperson Vincent Magwenya added that the President trusts Chauke will continue his responsibilities with dedication and inte