The Hawks are investigating how two Eastern Cape district municipalities awarded contracts worth more than R1.5bn to a Komani company, Izwelethu Cemforce, which they say did little of the specified work.
Izwelethu Cemforce was contracted to supply ventilated improved pit (VIP) toilets to villages in the Chris Hani and Amathole district municipalities.
However, much of the materials delivered reportedly lies unused and strewn around several villages.
But the company’s owner said that they had only been contracted to supply materials, not to complete the construction work.
Hawks spokesperson Capt Yolisa Mgolodela confirmed on Wednesday that the probe was into tenders amounting to more than R1.5bn.
The investigation was sparked by information provided by whistle-blowers.
It is alleged that the company received the contracts without following proper procurement processes.
Mgolodela said: “According to investigations, some work was not done at all and in some areas only partially done, while other villages never benefited.
“The number of toilets meant to be built cannot be confirmed as information is still coming in pending the director of public prosecutions’ decision.”
Some government officials in both Amathole and Chris Hani had been questioned as they were involved in the awarding of the tenders and the effecting of payments. She said they had been co-operative.
DispatchLIVE has seen videos and pictures of the materials, which include concrete slabs, lying around some villages of Chris Hani while community members are still without decent sanitation infrastructure.
Prompted for answers, Chris Hani municipal spokesperson Bulelwa Ganyaza said: “The matter referred to is subject to investigation and we cannot provide further details at the moment.”
Izwelethu Cemforce MD Wicus Diedricks said he had not been officially informed or contacted about the Hawks’ investigation.
“I was made aware of it only when it was published in the newspapers. My stance on the matter will depend on what the Hawks ask.
“They are free to investigate the matter but as far as we know we have not done anything wrong.
“This is still just an investigation based on allegations as there are no findings yet.
“Nothing has been proven and we haven’t been contacted, let alone been charged with anything.
“If they come to us with questions through official channels we will co-operate.”
Diedricks said his company had not been appointed to build the toilets but only to supply the material.
“The Chris Hani municipality was supposed to appoint local SMMEs to build the toilets.
“We supplied most of them but we ran out of beneficiaries to deliver to. We supplied what we could; we needed instruction from the municipality about where to deliver further.
“We are still awaiting that instruction. We haven’t received any orders for the rest of the Chris Hani area.”
While the contract for Chris Hani was for three years, Diedricks said the Amathole one was ongoing.
Amathole spokesperson Noni Vuso-Madikizela said the institution was not being investigated.
Diedricks invited reporters to visit his plant to see that he was running a legitimate business.
“You are welcome to visit our plant in Komani. We are a legitimate business. We employ 300 people and we build about 50,000 toilets a year.
“All I ask is for you not to fall into the trap and allow your newspaper to do the dirty work for people with sinister motives, and to give both sides of the situation.
“It’s election time so politics are being played.”
Diedricks said this was not the first time his company had done business with the two municipalities and he had been working with Chris Hani municipality, specifically, for the past 10 years.
DispatchLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.