President vows to clamp down on COVID-19 funds looting

Staff Reporter

President Cyril Ramaphosa has signed a proclamation authorising the Special Investigating Unit (SIU) to investigate any unlawful or improper conduct in the procurement of any goods, works and services during or related to the national state of disaster at any state institution.

The proclamation empowers the SIU to probe any allegations relating to the misuse of COVID-19 funds across all spheres of the state.

“If the SIU finds evidence that a criminal offence has been committed, it is obliged to refer such evidence to the prosecuting authority,” Ramaphosa said in a televised national address Thursday evening.

The president was giving an update on developments on the country’s risk-adjusted strategy to manage the spread of COVID-19.

According to Ramaphosa, the SIU is also empowered to institute civil proceedings for the recovery of any damages or losses incurred by the state.

“To ensure that action is taken speedily, I will be getting interim reports on investigations every six weeks,” he said.

“The fight against the coronavirus pandemic is stretching our capabilities and resources to their limit.

“We are therefore determined that there should be no theft, no wastage and no mismanagement of public funds.

“The consequences for those who break the law or bypass regulations will be severe.”

Ramaphosa announced that the government has established a collaborative and coordinating centre to strengthen the collective efforts among law-enforcement agencies so as to prevent, detect, investigate and prosecute COVID-19-related corruption.

The centre brings together nine state institutions, including: the Financial Intelligence Centre (FIC), the Independent Police Investigative Directorate, the National Prosecuting Authority, the Hawks, Crime Intelligence and the SAPS Detective Service, the South African Revenue Service, the Special Investigating Unit and the State Security Agency.

The president said the centre which is based at the FIC is investigating allegations of corruption in areas such as the distribution of food parcels, social relief grants, the procurement of personal protective equipment and other medical supplies as well as the UIF special COVID-19 scheme.

“At least 36 cases are currently at various stages of investigation and prosecution,” he said.

“We are determined that every instance of alleged corruption must be thoroughly investigated, that those responsible for wrongdoing should be prosecuted and that all monies stolen or overpriced are recovered.”

Ramaphosa said the Auditor-General has also adopted special measures to safeguard funds committed to the fight against COVID-19.

Special audits have been undertaken to detect and prevent misuse of these funds and to identify risks in the system.

“From the outset of our response to the pandemic, we have been quite clear that there should be no scope for corruption in the use of these resources . . . corruption puts lives at risk,” the president said.

“National treasury issued regulations to ensure that emergency procurement of supplies and services meet the constitutional requirements of fairness, transparency, competitiveness and cost effectiveness.”