Cape Town's R1.6 billion contract investigation: What you need to know
Police have conducted a large-scale seizure operation in Cape Town, prompted by whistleblower claims of R1.6 billion in fraud.
Image: Armand Hough Independent Newspapers
The City of Cape Town has revealed that contacts to the value of R1.6bn as cited by the police was not money lost but forms part of the ongoing investigation following the major intelligence driven seizure operation of 26 addresses across the Cape Town metropolitan.
City Spokesperson, Luthando Tyhalibongo said: "The amounts cited by the SAPS does not pertain to money that has been lost.
"This is the total value of contracts which SAPS stated are under investigation, and not the quantum of alleged fraud.”
Following the search and seizure operation, whistleblowers and politicians called for an independent audit and an investigation by the Special Investigating Unit (SIU).
The investigation is believed to have been initiated by a whistleblower.
The police spokesperson, Colonel Andre Traut on Wednesday detailed that the intervention followed information received from a whistleblower and subsequent preliminary investigations was conducted by both the City of Cape Town Municipality and SAPS.
He said the identified addresses include business premises, private residences of municipal officials, and locations linked to individuals and entities that were awarded contracts by the Municipality, with the approximate value of R1.6 billion.
Traut said the operation seeks to secure both documentary and electronic evidence to establish the full extent of alleged fraud and corruption.
Tyhalibongo was also approached by Cape Argus whether its urban mobility directorate formed part of the raid, to which he said: “The City proactively launched the preliminary investigation and handed over its findings to the investigative authorities. Following information obtained through a proactive preliminary investigation done by the City of Cape Town and submitted to the investigative authorities, the South African Police Services (SAPS) Commercial Crimes Unit conducted a search and seizure operation at various sites in Cape Town on September 30.
“In line with the City’s zero tolerance approach to fraud and corruption, City Forensic Services took swift action to assess and report the matter to SAPS, who then undertook a search and seizure operation.
“The City remains fully supportive of SAPS and committed to providing them with all necessary information to facilitate a thorough investigation.
“It must also be noted that the persistent description in IOL reporting of "R1.6bn tender fraud" is not factually correct."
Cape Argus also approached the police, asking whether the urban mobility directorate formed part of the investigation, to which Traut answered: “Kindly be advised that this is an ongoing investigation and the information captured in our release is what we are prepared to share with the media at this stage.”
The City’s integrity came under spotlight in 2023, following the arrest of their former Mayco Member of Human Settlements (MMC), Malusi Booi.
In January a raid ensued at the offices of Mayco Member for Security and Safety, JP Smith and Mayco Member for Energy in January, but the two were vindicated by a decision by the Western Cape High Court who deemed the search as unconstitutional.