R150 million road contract in South Africa under investigation

A R150 million road contract in South Africa is being probed by the Special Investigation Unit (SIU) for possible maladministration, fraud, corruption, and irregular expenditure.

In March 2022, a R150.4 million contract was appointed for the special maintenance of 28 kilometres of road along the P151/1 between Setlagole and Delareyville in the North West Province.

The contract was originally set for a period of 17 months, meaning the project was expected to wrap up by August 2023.

However, by September 2024, the project had already spent R98.1 million, but only 44% of the road was completed, raising concerns about the project’s management and oversight.

Notably, the contract’s implementation took place during a period when the North West Department of Public Works and Roads was under Section 100 (1)(b) national administration.

This has resulted in a proclamation authorising the SIU to investigate the matter for alleged corruption and irregular expenditure.

The Democratic Alliance (DA) welcomed the move and is now demanding answers on how the contract was allowed to proceed.

Freddy Sonakile, the DA Caucus Leader in the North West Provincial Legislature, said the party was deeply concerned by the fact that the project was conducted under Section 100, given that it was implemented to prevent this type of irregular expenditure.

“This raises questions that go beyond one contract. Section 100 intervention was imposed precisely to rescue the province from administrative collapse, strengthen financial controls and restore proper governance,” said Sonakile.

“If contracts concluded during that intervention are now attracting SIU scrutiny over possible maladministration, fraud, corruption and irregular expenditure, then the effectiveness of the intervention itself must also come under examination.”

The DA said it expects the SIU investigation to establish whether individual officials, contractors or other parties acted unlawfully.

It also wants to know how the procurement controls operated under national administration, who exercised oversight over the road contract, and whether warning signs were ignored.

Furthermore, the DA said the North West Department of Public Works and Roads must confront its persistent internal capacity challenges.

It stated that the department must stop relying excessively on external consultants and service providers, and that it needs to cultivate its own internal technical and engineering teams.

Additionally, the department needs to improve its own project and contract management, and procurement capacity to allow the province to design, monitor, and enforce its own infrastructure developments.

“Strengthening internal capacity is essential if the province is to break the cycle of delayed projects, escalating costs, poor contractor performance and repeated investigations after public money has already been spent,” said the DA.

The party stated that the department should fully cooperate with the SIU, and make available every tender document, evaluation record, payment certificate, variation order, progress report and approval connected to the R150 million road contract.

“Where wrongdoing is established, there must be consequences, recovery of public funds and criminal referrals where appropriate.”

SIU investigation

President Cyril Ramaphosa signed Proclamation 340 of 2026, authorising the SIU to investigate the alleged unlawful or improper use of public funds at the North West Department of Public Works and Roads.

Under the Special Investigating Units and Special Tribunals Act, 1996 (Act No. 74 of 1996), the SIU is empowered to initiate civil proceedings in the Special Tribunal or High Court.

It is also authorised to recover any losses suffered by the State or the department for the R150 million road contract and other irregular expenditure.

The investigation will focus on the procurement of, or contracting for, goods, works or services by or on behalf of the department in relation to Bid Number PWR 89/13: Special Maintenance of Road P152/1 from Setlagole to P34/4 in Delareyville.

The SIU said it will probe whether the procurement process, contracting and related payments were conducted in a manner that was not fair, competitive, transparent, equitable or cost-effective.

It said it would flag any records and activities that were inconsistent with manuals, guidelines, practice notes, circulars or instructions issued by the National Treasury or the relevant Provincial Treasury, as well as the department’s own policies, procedures, prescripts, instructions or practices.

The investigation will cover the period from 9 March 2021 to 28 August 2026. It will also look at officials, employees, department agents, service providers, and other persons suspected of unlawfully benefitting themselves or another party.