The Special Investigating Unit (SIU) probed seven matters related to the Department of Communications and Digital Technologies (DCDT) and some of its entities, between 2010 and 2024.
Among these are investigations into the SA Post Office (SAPO), State IT Agency (SITA), SABC, Telkom and the Universal Service and Access Agency of SA (USAASA).
This came to light during the SIU’s first interaction with Parliament’s Portfolio Committee on Communications and Digital Technologies in the seventh administration.
The unit provided insight into all its investigations and current cases within the communications portfolio, in line with the committee’s oversight of the DCDT and its entities.
The state investigation agency is mandated to investigate corruption, malpractice and maladministration in government through a proclamation authorised by the president.
SIU head advocate Andy Mothibi told committee members that five investigations – of the SABC, SITA, SAPO, USAASA and the DCDT – have been finalised and presidential reports submitted.
Ongoing investigations include that of Telkom and The New Age Media breakfast briefings at various state institutions, including the SABC, stated Mothibi.
Probing matters
Relating to the SABC proclamation of 2010, the SIU was mandated to investigate allegations of mismanagement and/or misconduct by SABC board members, officials and/or employees and any other third-party.
The same applies to SITA, SAPO and USASSA, with the proclamation relating to allegations of malpractice, maladministration and misconduct of officials, said Mothibi.
The SIU was mandated to investigate alleged irregularities at USAASA in the recruitment process and the appointment of the agency’s former CEO Zami Nkosi.
Additionally, it investigated irregularities in the granting of a subsidy to construct and expand an electronic communications network for Emalahleni Local Municipality. It also probed alleged irregularities in the procurement of goods or services in relation to the rapid deployment of the public access facilities programme and payments made.
The SIU also investigated the procurement of goods and services, and unauthorised or fruitless and wasteful expenditure by SITA.
The SAPO probe required the SIU to investigate 16 areas of concern, as identified in an audit report provided by the post office.
It investigated irregular conduct by SAPO board members in relation to supply chain management and recruitment irregularities, examining the tender process for multifunctional devices and the recruitment process to fill the vacant position of chief information officer.
Meanwhile, the DCDT was investigated in relation to its donation towards the hosting of an ICT Indaba. The SIU found that travel and accommodation expenses or benefits were paid by the department to a person who does not qualify for such.
Zodwa Xesibe, acting chief national investigations officer at the SIU, said in terms of recoveries and savings regarding the SABC investigation, it saved the institution R151.3 million and recovered R33.5 million.
The SIU was able to save SITA R111.3 million through the termination of a contract, recovering R24.6 million.
For the post office, savings amounted to R46.1 million; however, no cash was recovered, noted Xesibe.
The SIU made six criminal referrals, 24 disciplinary actions, 11 civil litigation matters and two administrative actions in the SABC matter.
The SITA investigation resulted in four criminal referrals and 22 disciplinary actions. The USAASA probe saw five criminal referrals and two civil litigation matters.
For SAPO, there were two criminal and seven disciplinary referrals: one civil litigation, administrative action and AFU [Asset Forfeiture Unit] referral, respectively.
The investigation into the DCDT resulted in one criminal referral, two disciplinaries and one civil litigation action, Xesibe said.
Ongoing saga
On the investigation of mobile operator Telkom, Xesibe said the matter is currently sub judice.
In January 2022, president Cyril Ramaphosa issued a directive that authorised a wide-ranging probe of possible maladministration in the disposal of Telkom’s assets – iWayAfrica, Africa Online Mauritius and Multi-Links Telecoms.
The 2022 order gave the SIU authority to investigate possible maladministration in the sale of these assets, which resulted in the telephony company losing millions of rands.
Telkom is majority state-owned, with government owning 40.5% of the JSE-listed company. Another 14.8% of the firm is held by another state-owned company – the Public Investment Corporation – which is closely linked to government.
Following the order, Telkom filed papers in July 2022 at the North Gauteng High Court to halt the probe into the company’s dealings in its African operations, dating back to 2006.
It is Telkom’s view that it is not a state entity and therefore the SIU could not investigate its affairs, Xesibe explained.
As a result, JSE-listed group filed an application in two parts. The first part was to interdict the president and the SIU from giving effect to Proclamation R49 of 2022. Part B was to declare Proclamation R49 of 2022 unconstitutional, invalid and of no force or effect.
The high court subsequently found in favour of Telkom. This action was followed by an application by the Presidency and the SIU for leave to appeal.
In December 2023, the court granted leave to appeal to the Supreme Court of Appeal (SCA) to the Presidency and the SIU.
The SIU filed its notice of appeal and application for condonation for late filing in the SCA on 27 June and the matter is pending.
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