Johannesburg: The Special Investigating Unit (SIU) is set to initiate investigations into the operations of the African Exploration Mining and Finance Corporation (AEMFC) and separately, the Dihlabeng Local Municipality in the Free State. This development follows President Cyril Ramaphosa’s signing of two proclamations empowering the SIU to carry out these investigations.

According to South African Government News Agency, the investigation at AEMFC will focus on allegations of significant maladministration concerning six tenders. The SIU aims to determine whether payments for these contracts complied with national treasury guidelines and if they constituted irregular, fruitless, and wasteful expenditures or financial losses for the department or the state. The investigation seeks to uncover any fraudulent conduct, assess the causes of maladministration, and evaluate any losses or damages suffered by AEMFC or the State. It will also look into any improper or unlawful activities by employees or officials of AE
MFC or other entities.

The probe will also scrutinize any unlawful or improper conduct by AEMFC employees, officials, or agents that could have benefited them or others corruptly or unduly. The Proclamation covers incidents from 1 January 2016 to 1 November 2024, including any related activities before this period that are relevant to the investigation and involve the same entities or contracts.

In Dihlabeng Local Municipality, the investigation pertains to a tender for the supply, delivery, and installation of two 40-meter high-mast lights. The SIU will assess whether the procurement process was fair, competitive, transparent, equitable, or cost-effective, and whether it adhered to applicable legislation and treasury guidelines. The investigation will also focus on unauthorized, irregular, or wasteful expenditures by the municipality or state, and any improper conduct by officials, suppliers, or service providers.

This proclamation also covers the period from 1 January 2016 to 1 November 2024, as well as
related activities before and after this timeframe that are pertinent to the investigation. The SIU emphasizes its commitment to identifying systemic failures and recommending preventive measures against future losses. In accordance with the SIU Act, any evidence of criminal conduct uncovered will be referred to the National Prosecuting Authority for further action. Additionally, the SIU is authorized to initiate civil action in the High Court or a Special Tribunal to address any wrongdoing identified during its investigation.