SCA dismisses Mphaphuli consulting appeal
Burgersfort
The Supreme Court of Appeal (SCA) has on Thursday 7 September dismissed the second attempt to review and set aside Special Investigating Unit (SIU) Report on electrification of villages at Greater Tubatse Local Municipality (GTLM), now Fetakgomo Tubatse Local Municipality (FTLM).
The court dismissed with costs, an application brought by Mphaphuli Consulting (PTY) LTD to set aside a High Court ruling relating to tender irregularities in a multi-million rand contract to electrify various villages in FTLM.
Mphaphuli Consulting, an engineering company owned by Lufuno Mphaphuli, approached the SCA after the High Court of South Africa, Limpopo Division in Polokwane upheld an investigation report by the SIU relating to electrification project, dubbed, ‘Operation Mabone’.
The SIU Report exposed inflated contract pricing when the company was electrifying a number of villages in FTLM.
SIU Spokesperson, Kaizer Kganyago, said the unit welcomes the decision, as it now settles the question of whether the investigation unit was empowered to investigate the electrification of villages under the local municipality and also paves way for civil claim against the engineering company to recover approximately R76 Million to commence in the Limpopo High Court.
“An investigation by the SIU in the affairs of Tubatse Municipality revealed that the municipality piggybacked on an existing contract between Mphaphuli Consulting and Vhembe District Municipality to electrify villages. However, the terms of the contract were changed to increase pricing of the services by more than R5 000 than what was charged in Vhembe, resulting in overpayment of approximately R76 Million,” said Kganyago.
He added that the SIU instituted a civil claim in 2017 in the Limpopo High Court to recover financial losses suffered by the municipality following the conclusion of its investigation.
In response, Mphaphuli Consulting brought an application to review and set aside the SIU report and to seek an order compelling the SIU to stop all steps taken against the engineering company, which emanated from the SIU investigation.
In March 2022, the Limpopo High Court dismissed the application with costs. The SIU was authorised under Proclamation R52 of 2014 to investigate allegations of corruption and maladministration in the affairs of FTLM.
“The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during its investigations caused by acts of corruption, fraud, or maladministration,” Kganyago said.
He said in line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.
