South African transport company under investigation for corruption

President Cyril Ramaphosa has empowered the Special Investigating Unit (SIU) to investigate allegations of serious maladministration, corruption, and irregular expenditure at North West Transport Investments (NTI).

The SIU has been mandated to recover any financial losses incurred by the State or these institutions as a result of corruption or maladministration, which was welcomed by the provincial legislature.

The President directed the unit to look into the affairs of the NTI and its wholly owned subsidiary North West Star (NSL), and the Atteridgeville Bus Service, which is a wholly owned subsidiary of NSL.

According to the proclamation, the SIU will investigate several procurement and contracting processes.

These include fuel supplied by Zentrafor Fuel, trading as FuelU, and vehicle rental services provided under a Vehicle Rental Agreement dated 28 July 2023.

The SIU will also look into the commuter bus services outlined in a Sub-Contractor Agreement dated 7 July 2023, by or on behalf of the NTI, as well as the payments made for these services.

In a statement, the unit revealed that it has also been authorised to investigate maladministration in the NTI’s operations regarding the receipt, processing, approval, and payment of claims submitted by service providers.

These include Tansanat Coachlines, Ziggy Investments, and the Tansanat Coachlines (Pty) Limited Ziggy Investments CC Joint Venture.

“The SIU will examine whether these operations breached applicable legislation and guidelines issued by the National Treasury or the relevant Provincial Treasury,” it said.

“The investigation will also examine actions taken by the Business Rescue Practitioner appointed on 21 July 2022, their agents, or NTI employees; whether individuals or entities received undue benefits.”

The SIU explained that it will also look into whether any of this resulted in serious maladministration, causing actual or potential losses to the NTI or the state.

NTI investigation welcomed

The North West Provincial Legislature Portfolio Committee on Community Safety and Transport Management has welcomed the proclamation authorising the SIU to investigate the NTI.

It added that the proclamation follows sustained oversight by the Portfolio Committee on Community Safety and Transport Management into matters relating to NTI.

According to the committee, it used oversight engagements, hearings and examination of concerns to raise awareness about what was happening within the entity and referred several matters to the SIU for investigation.

“When the issuing of the proclamation was delayed, the Committee escalated the matter by writing directly to President Ramaphosa, requesting that the process be expedited,” it added.

“The signing of the proclamation therefore represents a significant step forward in the accountability process and in the Committee’s ongoing efforts to support the turnaround and sustainability of NTI.”

The proclamation has provided the SIU with the necessary statutory mandate to investigate the allegations.

It also enables the unit to follow the evidence and, where losses to NTI or the State are established, pursue appropriate recovery measures.

North West Provincial Legislature Portfolio Committee on Community Safety and Transport Management chairperson Freddy Sonakile said the committee’s work does not end with the proclamation.

“The committee will continue to monitor the progress of the SIU investigation, as well as matters that have already been referred to the Hawks,” he said.

“We will continue exercising rigorous oversight until there is accountability, consequence management and every possible effort is made to recover public funds lost through wrongdoing.”

Sonakile explained that the committee’s main objectives remain the protection of workers, restoring reliable services to commuters and ensuring that NTI is saved and rebuilt.

He added that the committee hopes the NTI will become a functional and sustainable public transport entity that serves the people of the North West.