A R150.4 million road maintenance contract in North West is set to come under scrutiny after President Cyril Ramaphosa authorised the Special Investigating Unit (SIU) to investigate allegations of corruption, maladministration and irregular expenditure surrounding the tender.
Ramaphosa signed Proclamation 340 of 2026, giving the SIU powers to investigate the procurement and implementation of a major road maintenance project overseen by the North West Department of Public Works and Roads.
The investigation will also seek to recover any public money found to have been unlawfully or improperly lost.
R150 million tender under investigation
The SIU investigation centres on Bid Number PWR 89/13, relating to the special maintenance of Road P152/1 between Setlagole and P34/4 in Delareyville.
The broader project covers 58 kilometres, with the investigation focusing specifically on Phase II, covering 28km.
According to the tender information cited in the proclamation, the bid was valued at R150,466,494.68.
The SIU will examine how the tender was procured, contracted and paid for, including whether the process complied with the legal and financial requirements governing public procurement.
SIU to investigate possible procurement irregularities
Investigators will determine whether the tender process was conducted in accordance with the principles of fairness, competitiveness, transparency, equity and cost-effectiveness.
The investigation will examine compliance with applicable legislation as well as directives and policies issued by:
- National Treasury
- The Provincial Treasury
- The North West Department of Public Works and Roads
The SIU will also assess whether departmental policies, procedures, manuals, instructions and other procurement prescripts were properly followed.
Any departures from these requirements will be scrutinised to determine whether they resulted in wrongdoing or financial losses to the state.
Officials and contractors face scrutiny
The investigation will not be limited to the department’s internal procurement processes.
The SIU has been authorised to investigate whether officials, employees or agents of the department, contractors, service providers or other individuals and entities were involved in unlawful or improper conduct.
Particular attention will be given to allegations that anyone involved may have acted to obtain an undue or corrupt benefit for themselves or another person or entity.
This includes examining whether the contract itself was compromised by improper conduct.
Fraud and irregular expenditure also part of probe
The SIU will investigate allegations of fraud connected to the tender and examine expenditure associated with the project.
This includes determining whether the department or the state incurred:
- Unauthorised expenditure
- Irregular expenditure
- Fruitless and wasteful expenditure
- Financial losses arising from unlawful conduct
The investigation could therefore extend beyond the original tender award to payments and other transactions made during the life of the contract.
Investigation covers five-year period
The SIU’s mandate covers the period from 9 March 2021 to 28 August 2026, the date on which the proclamation was published.
Investigators will therefore be able to examine relevant decisions, procurement processes, contracts, payments and related conduct occurring during that period.
The proclamation also allows the SIU to investigate related matters that may arise during its work, where they fall within its legal mandate.
SIU can pursue recovery of public funds
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU has powers extending beyond investigation.
Where evidence establishes that the state suffered a financial loss, the Unit can take steps to recover the money.
The SIU may also institute civil proceedings in the Special Tribunal or the High Court against individuals or entities implicated in wrongdoing.
This means that if the investigation uncovers evidence of unlawful conduct that caused financial losses, those responsible could face civil recovery proceedings in addition to any potential criminal consequences.
Why the investigation matters
Road maintenance contracts involve significant amounts of public money and directly affect communities that depend on reliable infrastructure.
The R150.4 million Setlagole–Delareyville project will therefore face scrutiny over whether taxpayers received value for money and whether the procurement and implementation of the contract complied with South Africa’s public-finance framework.
The investigation does not, however, mean that wrongdoing has been established.
The SIU’s task is to establish the facts, identify any unlawful conduct and determine whether public funds were improperly spent or lost.
Should evidence of wrongdoing emerge, the Unit has the legal mechanisms to pursue recovery and other appropriate action.
