SIU Proclamations: North West Transport Investments and eThekwini Municipality

Posted 14 September 2026 Written by Acts Online
Category Public Sector & Procurement

Brought to you by SAnews: President Cyril Ramaphosa has signed presidential proclamations directing the Special Investigating Unit (SIU) to probe maladministration and procurement non-compliance at state-owned North West Transport Investments (NTI) and expanding an existing probe into eThekwini Metropolitan Municipality.

In terms of the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, the President has authorised the SIU to investigate allegations of corruption, serious maladministration, and irregular expenditure at NTI, together with its wholly owned subsidiaries, North West Star SOC Limited (NSL) and Atteridgeville Bus Service SOC Limited (ABS).

The terms of reference require the SIU to determine whether procurement, contracting, and payments breached applicable statutory frameworks or circulars issued by the National Treasury or North West Provincial Treasury. Specific matters under investigation include:

  • Fuel supply agreements entered into with Zentrafor Fuel (Pty) Limited, trading as FuelU;
  • Vehicle rental services procured under a Vehicle Rental Agreement concluded on 28 July 2023;
  • Commuter bus services structured under a Sub-Contractor Agreement dated 7 July 2023, along with all associated municipal and provincial disbursements;
  • The receipt, processing, approval, and settlement of claims submitted by Tansanat Coachlines (Pty) Limited, Ziggy Investments CC, and the Tansanat Coachlines (Pty) Limited / Ziggy Investments CC Joint Venture; and
  • Actions, appointments, and commercial decisions taken by the Business Rescue Practitioner appointed to NTI on 21 July 2022, their appointed agents, or entity employees.

Amendment to eThekwini Proclamation 226 of 2024

Separately, the President amended Proclamation 226 of 2024, which authorises the SIU to investigate security and VIP protection procurement within the eThekwini Metropolitan Municipality. The amendment expands the temporal scope of the investigation and brings additional municipal contracts under formal review, specifically contract numbers:

  • CMS 0031
  • 1C 15104
  • 1C 18709
  • 1C 20359
  • 1X 31747
  • 1C 29300

The unit will examine contract variations, extensions, and payments against section 217 of the Constitution of the Republic of South Africa, 1996 and the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA) to evaluate whether municipal expenditure was irregular, fruitless, or wasteful. Matters demonstrating criminal conduct will be referred to the National Prosecuting Authority (NPA), while the SIU will pursue civil recoveries through the High Court or the Special Tribunal.

What this means for you, your business, or your clients

  • For yourself: Business rescue practitioners, restructuring professionals, and forensic investigators should review appointment files and delegation mandates to ensure complete evidentiary trails in state-owned enterprise engagements.
  • For your business: Vendors contracting under the cited NTI and eThekwini contract numbers must anticipate Section 5(2)(b) subpoenas for invoices, delivery notes, and bidding correspondence, and should conduct an internal supply-chain audit immediately.
  • For your clients: Municipal contractors and joint ventures operating under public transport or security panels face clawback exposure or Special Tribunal cancellation proceedings if contract extensions or variations failed to strictly comply with municipal supply chain management regulations.

Originally published at https://www.sanews.gov.za/south-africa/siu-investigate-state-owned-north-west-transport-investments

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