Special Investigating Unit- South Africa

|SIU WELCOMES SPECIAL TRIBUNAL RULING SETTING ASIDE IRREGULAR DITSOBOTLA WASTEWATER TREATMENT CONTRACT OBTAINED VIA A PHONE CALL

The Special Investigating Unit (SIU) welcomes the Special Tribunal’s judgment, which reviews and sets aside an unlawful wastewater treatment contract worth R25,884,435.75, awarded irregularly to Rensh Close Corporation after a single telephone call from the municipal technical director of the Ditsobotla Local Municipality in the North West, thereby bypassing a legitimate tender process that had already attracted 17 bids.

The Tribunal ruled Rensh Close Corporation, owned by Rashida Cader, must repay all monies due to the municipality, including profits from the contract. Cader is personally liable for the municipality's losses. Within 30 days after submitting audited financial statements, review all money received from the municipality for the unlawful contract and any reasonable out-of-pocket expenses Rensh may have paid for services, and determine how much must be paid back. They are also directed to repay all monies due to the municipality within 15 days of the final determination of this process.

The SIU’s investigation found that on 19 November 2019, Themak Consulting Civil Engineering Consultancy, owned by Edwin Andries Hapi Makola, was appointed to assess the municipality’s wastewater infrastructure and subsequently produced a technical report and a bill of quantities (BOQ) valued at R36,923,045.77.

The company also invoiced the municipality R3,882,665.37 for consultancy services.
Themak and Makola have also been ordered to repay R3,882,665.37 received under the contract, together with interest from the date of the order until final payment.
The judgment follows an SIU investigation, prompted by a referral from the Auditor-General of South Africa (AGSA), which uncovered serious procurement irregularities in the appointment of Rensh during the COVID-19 period.

The contract involved repairs and refurbishment at the Biesiesvlei/Itekeng Wastewater Treatment Plant, Blydeville Extension 1 Pump Station, Blydeville Extension 3 Pump Station, Boikhutso Pump Station and the Lichtenburg Wastewater Treatment Plant.

On 27 November 2019, the municipality advertised a tender through the National Treasury for the emergency refurbishment of dysfunctional pump stations and associated works. Several service providers responded to the tender. Rensh was not among the bidders.

However, on 7 March 2020, a municipal technical director contacted Cader by telephone and requested a quotation for repairs and maintenance of all facilities for which Themak had already produced a BOQ. Rensh subsequently submitted a quotation for R25,884,435.75.

The investigation found that the municipality abandoned an existing tender process and used COVID-19 emergency procurement rules to appoint Rensh, despite the company having neither submitted a bid nor demonstrated the required expertise.

The SIU further found that:
• The municipality had already advertised the tender and received about 17 bids before the National State of Disaster, but the procurement process favoured appointing Rensh.
• One of the bidders who was interviewed said he submitted a BOQ and attended site inspections for emergency refurbishment of four pump stations in December 2019, but never received any feedback.
• Cader’s husband had done prior work for the municipality, but Cader’s inexperienced company got the bid and contract.
• No valid written contract or appointment letter could be produced for Rensh’s appointment.
• Rensh relied on a BOQ prepared by consulting firm Themak and reduced the project value from R36,923,045.77 to R25,884, 435.75.
• The municipality paid R25,884,435.75 to Rensh in May 2020, despite work not being completed.
• AGSA inspections identified payments for work and contingency amounts totalling more than R4,314,072.63 that could not be verified on-site.
• Rensh was contracted to supply four 100kVA diesel generators to assist in maintaining the wastewater treatment plants at R250,000 each. Instead, 137 kVA generators were delivered and invoiced at R550,000 each.
• Themak falsely reported the project as complete despite generators being installed a month later, while AGSA’s Material Irregularity (MI) report identified the amount of R5,555, 650 in undelivered work.

The SIU’s investigation found evidence suggesting collusion between municipal officials and the service providers to defraud the municipality.

Judge Mashile noted that, despite significant public funds being spent, residents remained in the same “unendurable and disadvantaged situation” that the project was intended to address.

“It is deeply troubling and unfortunate that the officials of organs of State, who are often the enablers and perpetrators of the fraud against the municipalities, never face the consequences of their deeds. If they do, the public seldom knows the outcome,” he said.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU has also referred any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

Under the SIU Act, the SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation in order, inter alia, to recover any losses suffered by the State.

|SIU WELCOMES SPECIAL TRIBUNAL ORDER FREEZING HILLCREST PROPERTY IN R9.8 MILLION UIF TERS FRAUD CASE INVOLVING ZIQOQE CONSTRUCTION

The Special Investigating Unit (SIU) welcomes the judgment from the Special Tribunal, which granted a preservation order to freeze a property valued at R2.7 million.

The property is linked to Ziqoqe Construction CC. It is connected to the alleged fraudulent abuse of the Unemployment Insurance Fund's Temporary Employer/Employee Relief Scheme (UIF TERS) during the COVID-19 pandemic. The SIU investigation revealed that Mr Ndabezinhle Luthuli, the owner of Ziqoqe Construction, submitted TERS applications on behalf of alleged employees of the company for the “shutdown” periods between 27 March 2020 and 15 August 2020.

The investigation established that the UIF paid a total of R9,836,047.06 in TERS benefits to Ziqoqe Construction between 21 July 2020 and 30 September 2024. However, the SIU’s investigation found that Luthuli did not pay any of the alleged 673 employees and failed to refund UIF.

Many of the listed employees were found to be “ghost employees”, and several individuals contacted by investigators denied ever working for the company.

The SIU discovered that a property worth R2,700,000, situated in the Sienna Estate Scheme in Hillcrest, eThekwini Municipality, KwaZulu-Natal, was purchased in November 2023 through purported fraudulent transactions, suggesting that the profits from illegal activities were utilised to benefit Luthuli.

As part of its ongoing investigation, the SIU conducted search-and-seizure operations on 12 December 2025 against associated individuals and entities.
The Tribunal has since granted an order directing the deeds registry to restrict the immovable property registered in the name of Luthuli.

The property may not be sold, transferred, or encumbered without a written agreement between the parties or an order from the court or Tribunal.

The Tribunal further ordered that Luthuli and Ziqoqe Construction remain responsible for all financial obligations related to the property, including levies, insurance, and associated costs, while the matter is pending. The costs of the application were reserved for determination at a later stage.

The investigation follows the authorisation of the SIU through Presidential Proclamation R.8 of 2021 to investigate allegations of maladministration and fraud related to UIF payments, including TERS claims.

The SIU remains committed to recovering public funds lost through corruption and maladministration, and to ensuring accountability for those who sought to exploit relief measures intended to support businesses and workers during the COVID-19 pandemic.

The Acting Head of the SIU, Mr Leonard Lekgetho, will be on at 10am today to discuss various SIU investigations. Please tune in.

The SIU wishes to clarify what Mr Yusuf Omar stated in his interview with eNCAnews, Yusuf Abramjee, and Heidi Giokos. Omar claims that the Special Tribunal released the cars. However, the Special Tribunal did not release Maumela-linked vehicles to Omar Motor Den without conditions. The judgment clearly states those conditions. Omar Motor Den has now applied to the High Court to appeal this order.

The Acting Head of the SIU, Mr Leonard Lekgetho, will be on eNCAnews at 12pm today to discuss various SIU investigations. Please tune in.

[UPDATE] The SIU has not found the Bentley. Omar Motor Den has admitted that they sold the car. The Bentley on the dealership floor is not the vehicle under investigation by the SIU. They have until Tuesday, 09 June 2026, to supply the SIU’s curator with documents of the sale, ownership of the vehicle, and its whereabouts.

Omar’s Motor Den and its owner, Yusuf Omar, must appear before the Special Tribunal on 3 July 2026, to explain why they should not be held in contempt of court. The Tribunal may impose imprisonment or other sanctions, and has ordered them to pay legal costs, with Yusuf Omar personally liable.

The SIU, its Curator, and SAPS are serving Omar Motor Den and its owner, Yusuf Omar. He has refused to cooperate with the SIU and SAPS and has been arrested.

|| SIU SECURES CONTEMPT AND SEIZURE ORDERS AGAINST OMAR MOTOR DEN FOR SELLING BENTLY LINKED TO MORGAN MAUMELA

The Special Investigating Unit (SIU) has obtained two orders from the Special Tribunal against Omar Motor Den in Emalahleni: one for contempt of court and another for the seizure of a Bentley Continental GT linked to procurement irregularities at Tembisa Hospital.

The first order, granted on 2 June 2026, empowers the SIU, through the appointed Curator Bonis, to take possession of the Bentley from Omar Motor Den. The order directs the dealership to refrain from any further dealing with, moving, trading, alienating or dissipating the vehicle until further order from the Tribunal. The application by the SIU’s curator is to prevent any dissipation or concealment of the asset. The dealership failed to disclose that the car was in its possession when it was served with the preservation order on 9 October 2025.

Furthermore, the order compels the dealership, together with Khonile Trading Enterprise CC, LSM Distributors (Pty) Ltd, and DriveTime Auto CC, in connection with the restrained Bentley Continental GT motor vehicle, to furnish the SIU with complete documentation and transaction records relating to the Bentley within five days of any written request. This includes invoices, sale agreements, proof of payment, VAT returns, bank statements, and correspondence covering the vehicle’s acquisition and transfers between 2018 and 2026.

The SIU’s investigation found that Bentley Continental GT, a restrained asset under a preservation order until 29 September 2025, has been transferred multiple times over the years. LSM Distributors initially moved it to the MHR Maumela Family Trust around 2018/2019. DriveTime Auto CC bought it on 23 September 2022, with another transfer on 31 October 2025. Omar’s Motor Den then acquired it on 31 October 2025, before transferring it to Khonile Trading Enterprise CC on 12 February 2026.

Despite these transfers, evidence suggests the Bentley remains in Omar’s possession, raising concerns of concealment and dissipation. This chain shows an ongoing flow of value away from the restrained estate, and the Tribunal’s order ensures that the Curator Bonis can secure the vehicle, obtain full documentation, and prevent further dealings until the matter is finally determined.

The second order
On 5 June 2026, the Special Tribunal granted an urgent order against Omar’s Motor Den CC and its owner, Yusuf Omar. The order authorised the SIU’s Curator Bonis, assisted by the South African Police Service and the Hawks, to immediately arrest and take possession of the restrained Bentley Continental GT.

The order for contempt of court relates to the Special Tribunal order of 29 September 2025, which preserves all assets linked to Hangwani Maumela in the SIU’s Tembisa Hospital investigation. This also includes contempt for the variation order dated 7 October 2025 and the reconsideration judgment dated 30 January 2026. The sale and transfer of the vehicle constitute a clear breach of the undertaking given by the dealership on 9 October 2025, in which it stated that “Omar intended in good faith to cooperate with any investigation… in respect of any vehicles that concern the respondents”.

The Tribunal issued an order calling on Omar Motor Den and its owner, Yusuf Omar, to appear on 3 July 2026 to show why a final order should not be granted, including findings of contempt, imprisonment of Yusuf Omar, and punitive cost orders.

Pending the return date, the respondents were interdicted from interfering with the Curator Bonis or tampering with the Bentley. They were further directed to preserve and provide access to CCTV footage from 22 May 2026 onward, failing which the Tribunal authorised an application for Yusuf Omar’s immediate arrest. The order underscores the Tribunal’s determination to enforce compliance with its earlier ruling of 2 June 2026 and to safeguard restrained assets from dissipation or concealment.

The rulings further affirm that no cars were returned to Maumela or the dealership, contrary to the misleading reports.

The SIU is directed by Proclamation No. 136 of 2023 to investigate allegations of corruption and maladministration in the affairs of the Gauteng Department of Health and the Tembisa Hospital. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU has also referred any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

Under the SIU Act, the SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation in order, inter alia, to recover any losses suffered by the State.

SIU AUTHORISED TO INVESTIGATE ALLEGED MALADMINISTRATION AT THE PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY AND THE UNEMPLOYMENT INSURANCE FUND REGARDING TRAINING CONTRACTS INTENDED TO TRAIN 7,071 LEARNERS

President Cyril Ramaphosa has signed Proclamation 316 of 2026, authorising the Special Investigating Unit (SIU) to investigate allegations of maladministration, improper or unlawful conduct, and to recover any financial losses suffered by the State in the affairs of the Private Security Industry Regulatory Authority (PSIRA) and the Unemployment Insurance Fund (UIF).

Proclamation 316 of 2026 empowers the SIU to investigate allegations relating to the procurement of, or contracting for, training services by or on behalf of the Institutions. The SIU will investigate allegations of maladministration within the Institutions and any resulting losses or prejudice they have suffered. This includes issues related to the delivery of Election Observer Training, End-User Computing Training, and “PSIRA Grade E to C” Training provided to 7,071 targeted learners across nine provinces.

The SIU will seek to establish whether the payments made were made in a manner that is fair, competitive, transparent, equitable or cost-effective. Furthermore, the SIU will examine whether there was any improper or unlawful conduct by officials or employees; unlawful appropriation or expenditure of public money or property; irregular or unauthorised transactions involving State property; intentional or negligent losses of public funds.

The investigation will cover allegations that occurred between 1 January 2019 and the date of publication of the Proclamation, 3 June 2026. The SIU is also authorised to investigate related matters that occurred before or after this period where they are connected to the issues identified in the Proclamation, including the same people, entities or contracts.

In terms of the Special Investigating Units and Special Tribunals Act, 1996 (Act No. 74 of 1996), the SIU will refer any evidence of criminal conduct uncovered during the investigation to the National Prosecuting Authority (NPA) for further action.

The SIU is further authorised to institute civil proceedings in the High Court or the Special Tribunal to set aside unlawful contracts, recover financial losses suffered by the State, and correct any wrongdoing identified during the investigation.