Multi-billion-rand water scandal probe widens

President Cyril Ramaphosa has authorised an expansion of the Special Investigating Unit’s (SIU’s) probe into the Department of Water and Sanitation (DWS).

It extends both its scope and duration beyond the War on Leaks and Almost Empty Outdoor Campaign projects.

The recently gazetted proclamation amended an earlier proclamation from April 2024 to include DWS’ “Drop the Block” Project, programme initiated under DWS minister Nomvula Mokonyane.

It broadened the inquiry beyond the Department and Sedibeng Water to include Lepelle Northern Water and any suppliers or service providers contracted for the project.

The timeframe of the probe has also been extended, covering activities from 1 January 2015 to 12 September 2025, with authority to investigate related matters outside these dates if they involve the same individuals, entities, or contracts.

Lepelle Northern Water is already under SIU investigations, including for irregularly awarding contracts in the multi-billion-rand controversial Giyani Water Project.

The SIU presented a stark account of entrenched corruption in South Africa’s water and sanitation sector during a briefing to the Standing Committee on Public Accounts (SCOPA) on June 4, 2025.

For the R500 million Drop the Block, investigators found that service provider appointments were handled by Lepelle Northern Water (LNW) before being ceded to another entity.

Findings so far indicate that the implementing agent was appointed contrary to legislation and DWS policy, and that a service provider was irregularly appointed through an “emergency” procurement deviation.

Potential cash recoveries of R1.57 million have been identified, linked to overpayments and incorrect VAT charges.

The War on Leaks Programme reflects even greater concerns. Although the approved budget was R2.2 billion, forensic analysis shows that at least R4.7 billion has already been paid out, with the figure expected to rise as investigations continue.

Of this, R1.7 billion went to Rand Water, including R40 million in unexplained and unsubstantiated “contingency fees.”

The Almost Empty Outdoor Campaign, valued at R10 million, also forms part of the ongoing probe, with attention on procurement irregularities and expenditure justification.

“The SIU will continue to investigate any unauthorised, irregular, fruitless, or wasteful expenditure incurred by the department or the State,” the SIU said in a statement.

The probe covers misconduct, corruption, and misuse of funds, while identifying system failures, recommending reforms, and referring cases to the NPA.

This adds to a litany of probes into DWS and its entities. According to the AG, the Department has seen R13.67 billion in irregular, fruitless, and wasteful expenditures as well as material irregularities in the last five years.

Systemic corruption and broad trends

Advocate Andy Mothibi, SIU head, told SCOPA that investigations revealed systemic failures that have plagued the sector for years. Since 2008, the SIU has issued 14 proclamations, with five currently active.

Common trends include irregular service provider appointments, unlawful contract extensions, inflated pricing, payments for incomplete or abandoned work, manipulation of payment systems, and violations of constitutional procurement principles.

Looking at other SIU probes, at the Amatola Water Board, irregularities in appointing Empowerment Water Solutions led to R17.4 million in cancelled purchase orders and 38 fraud-related referrals to the NPA.

Similar issues at Lepelle Northern Water Board exposed irregular appointments, inflated prices, and contract extensions. One civil litigation case there seeks to recover R107 million.

Investigations into contracts at Grootfontein and Grootdraai Pump Stations uncovered fraudulent claims and R1.16 million paid for unperformed work.

Three senior DWS officials, including a CFO and Procurement Manager, face disciplinary referrals, with a criminal case registered.

At Tshwane’s Rooiwal Wastewater Treatment Works, the Phase 1 contractor abandoned the site after failing to deliver.

Nine officials linked to the project face lifestyle audits for suspicious asset accumulation, while four fraud referrals were sent to the NPA.

Mothibi stressed that the SIU will continue recovering funds, strengthening oversight, and exposing entrenched corruption threatening South Africa’s critical water infrastructure.

Proactive measures needed

Beyond investigations, the SIU emphasised preventive measures, recommending systemic improvements such as ensuring all entities conducting business with the Department are “registered on a formal supplier database” and provide “a letter of good standing with SARS prior to conducting business”.

Furthermore, the Department “should perform CIPC checks on all these entities to check for any employee involvement and/ or conflict of interests”.

A critical development highlighted was the establishment of the Water Sector Anti-Corruption Forum (WSACF), with its inaugural meeting having taken place on May 14, 2025.

The SIU said that the forum is a strategic intervention aimed at “fostering collaboration amongst the stakeholders in the sector in order to effectively fight corruption” and “ensure that prevention measures are implemented to mitigate fraud and corruption risks in the sector”.

The SIU sees these forums, involving law enforcement, civil society, and the private sector, as essential for a “whole-of-society approach ” to tackling corruption.