A former Greater Kokstad Local Municipality IT manager allegedly manipulated procurement processes to ensure his company was selected for a R5.27-million contract.
The Special Investigating Unit secured an interim order to block the disbursement of R2.8 million in pension benefits to former Greater Kokstad Local Municipality IT manager, Yaw Owusu-Boakye.
The Special Investigating Unit (SIU) secured the interim preservation order from the Special Tribunal. It prevents the KwaZulu-Natal Joint Municipal Pension Fund (NJMPF) from disbursing the benefits.
“This comes after the SIU’s investigation revealed that Owusu-Boakye was the beneficial owner of Obytech Solutions,” the SIU said.
It added that Obytech Solutions was awarded an R5.27 million tender by the Greater Kokstad Local Municipality to renew software licences for 3 years.
The municipality made three payments to the company, including R1.2 million on 5 March 2023, 2.8 million on 26 July 2023, and a further R1.2 million on 24 January 2025.
“Further investigation found that Owusu-Boakye was a signatory to Obytech Solutions’ bank account and had sole control over the funds held in the account,” the SIU said.
According to its findings, the Greater Kokstad Local Municipality received little or no value from the services Obytech Solutions provided.
“The investigation identified significant non-delivery under the contract, valued at R3,465,835, with proceeds allegedly used to fund personal expenses and lifestyle,” the SIU said.
It also found that Owusu-Boakye had allegedly manipulated the procurement process to ensure his company was chosen through fraudulent misrepresentations in bid documents.
The SIU added that Owusu-Boakye had resigned from his role in June 2025 after the SIU’s investigation commenced.
“On 31 March 2026, the SIU launched an application before the Tribunal seeking to review and set aside the municipality’s decision to appoint Obytech Solutions,” it said.
“The SIU is also seeking an order directing Obytech Solutions to repay the profits derived from the tender.”
The Tribunal’s order bars the NJMPF from doing “anything that may in any other way encumber or prejudice the value of the moneys held or administered by it” regarding the funds due to Owusu-Boakye.
“The preservation order forms part of the SIU’s efforts to implement investigation outcomes and ensure consequence management,” the SIU said.
It said this included recovering financial losses suffered by state institutions due to corruption, fraud, and maladministration.
