Whistleblowers hailed for exposing alleged graft in Swellendam

A FORENSIC report has flagged a number of procurement irregularities, misconduct, possible corruption and tender fraud in the DA-led Swellendam municipality. 

The investigation by Nexus Forensic Services follows similar findings by Advocate Etienne Vermaak last year, which included recommendations for criminal charges against senior officials implicated in the wrongdoing.

Nexus was tasked with reviewing the preliminary report findings and conducting further investigation. The investigation included several tenders namely, SMT01/24/25, SMT16/23/24, SMT44/23/24, SMT45/23/24, SMT19/23/24, SMT22/23/24, SMT52/22/23 and SMT33/17/18. 

Its findings include conflicts of interest, fraud and forgery for preference to win certain tenders. 

“There is prima facie evidence of forgery (writing Individual C’s name) and uttering (knowing that the attendance register is returned to the Municipality and would form part of the evaluation documents); when Individual B misrepresented the attendance of Individual C when he signed the register. There is prima facie evidence of fraud, in that Individual B failed to write his own name; that caused the Municipality not knowing that Individual B - the son of Individual A – attended the meeting.  

“That Individual A contravened the SMC (Supply Chain Management) policy in that: he did not disclose, in writing, his familial relationship with Individual B, an employee of Bidder B, to the Municipal Manager. He did not recuse himself from participating in the evaluation of SMT16/23/24 or SMT01/24/25. There is prima facie evidence that Individual A committed fraud, in failing to disclose his relationship with Individual B from Bidder B, in circumstances where he had a legal duty to do so.  The prejudice to the Municipality is that the Municipality was unable to detect a conflict of interest timeously and ensure compliance with the regulatory framework,” the report read. 

Recommendations included reporting the reasonable suspicion of the criminal offences of forgery and uttering and fraud, as well as ensuring the relevant consultant was no longer a contractor of the municipality, among others. 

“The Municipality should provide training to consultants and BEC members in relation to the Municipality’s SCM policies and procedures to ensure that all bidders are treated equally during bid evaluations,” the report further stated. 

Opposition parties lauded whistleblowers who lifted the lid into wrongdoing.  

“The relentless pressure from the ANC Councillors, supported by damning evidence from whistleblowers and the brave stance of the then Speaker Juan Van Schalkwyk led to the appointment of Advocate Vermark by Council to probe the allegations. Council also appointed a full forensic investigation through Nexus. 

“While we note and welcome these findings, we are concerned that the Nexus Forensic Investigation did not interview the very whistleblowers who came forward in 2023. It was the evidence of the whistleblowers which eventually led to the establishment of the Vermark Investigation,” said the ANC in the Western Cape. 

Freedom Front Plus provincial chairperson, Danie Acker said: “Although the Freedom Front Plus has reservations about certain shortcomings in the Nexus investigation, the positive outcomes are that the Municipality can now remedy flaws in its supply-chain management systems, terminate corrupt relationships and lodge complaints against the individuals named.”  

In a statement, the mayor, Francois du Rand said the Nexus report did not implicate the Municipal Manager, the Executive Mayor, the Chief Financial Officer, senior management, or “any political office-bearers in fraud, tender manipulation or political interference”. 

“Instead, it identifies irregular conduct by specific individuals and certain external consultants, including possible corruption linked to tender SMT52/22/23. These findings are targeted, limited, and highly specific—not systemic.”   

Cape Times