SIU Launches Corruption Probe into Buffalo City Metropolitan Municipality Over R100 Million Tender Irregularities

BUFFALO CITY, Eastern Cape — The Special Investigating Unit (SIU) has officially launched a corruption probe into the Buffalo City Metropolitan Municipality following a proclamation authorized by President Cyril Ramaphosa. The investigation will focus on alleged maladministration and the unlawful appropriation of public funds across six major tenders, with the SIU aiming to recover an estimated 100 million rand.

The scope of the investigation covers procurement irregularities involving the municipality and its entity, the Buffalo City Development Agency. High-profile projects under scrutiny include the Mdantsane swimming pool project and consulting engineering services for the Water World Fun Park. While the probe actively examines tender allocations from 2017 through September 2026, SIU spokesperson Selby Makgotho confirmed that the unit will also investigate historical activities dating back to 2009 and 2011, a period where financial accountability records are notably absent.

The current municipal leadership has issued a statement welcoming the presidential proclamation, asserting that they have already been seized with the matter. The municipality noted that some individuals have been charged and others suspended pending internal investigations. Current leadership maintains that they inherited these historical governance issues and have since operated a clean administration.

However, Selby Makgotho emphasized that the SIU’s mandate is independent and will be gauged strictly on the evidence derived from the institution. “We are quite used to institutions that we investigate expressing appreciation before we even get in,” Makgotho stated. He explained that the investigation will involve meticulous scrutiny of subpoenaed records, witness statements taken under oath, and the decision-making processes of bid evaluation and adjudication committees.

The probe was partly prompted by referrals from the Auditor General and alerts from whistleblowers regarding incomplete projects and a severe lack of due diligence, despite public funds having been spent. Makgotho warned that consequence management is a core outcome of the SIU’s work. If evidence links municipal officials or networked individuals to the proceeds of criminality, the SIU will approach the special tribunal to review and set aside irregular contracts, and will pursue the seizure of personal assets to recover state losses.

In a related development, President Ramaphosa has also extended the scope of an existing SIU investigation to include two additional tenders involving the Gauteng Department of Human Settlements, further expanding the unit’s mandate to root out state corruption and maladministration.