SIU institutes civil action against EC contactors embroiled in R75m tender scandal

The Special Investigating Unit (SIU) has instituted civil action against contractors in the Alfred Nzo District Municipality, in the Eastern Cape, who are embroiled in a R75 million tender scandal.

On Monday, nine people accused of irregularly securing and awarding the tender for trucks, water tankers and jet vacuum tankers appeared in the Emaxesibeni Court on fraud and corruption charges.

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According to the SIU, the tender was awarded to a company called Kwane Capital without budget approval.

Spokesperson Kaizer Kganyago said that they have also been charged with money laundering.

“The municipality suffered an actual or potential financial loss of R60.7 million due to overcharging and excessive profit margins. The SIU has instituted a civil action in the Special Tribunal to review and set aside the contract and to recover losses suffered by the municipality.”