South Africa: SIU Granted Preservation Order Against Company Linked to Former MP

19 November 2024

The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal against Groen Mintirho which is associated with former Parliamentarian Pule Mabe.

This in connection with alleged procurement irregularities involving the Gauteng Department of Agriculture, Rural Development and Environment (GDARD) and the City of Ekurhuleni Metropolitan Municipality (EMM).

The SIU said the latest order from the Special Tribunal bars Mabe from "selling, leasing, transferring or otherwise dealing with specific assets", which include a luxury home in Steyn City, Gauteng, and a luxury motor vehicle, Porsche 911 Carrera GTS.

"The SIU's investigation...uncovered significant irregularities in the procurement of 200 motorised three-wheeler vehicles valued at R27,599,250 for a waste management project. Despite payments made to Enviro Mobi, evidence indicates non-compliance with procurement regulations, misrepresentation, and failure to deliver contracted services.

"The SIU findings revealed mismanagement of public funds, resulting in losses exceeding R25 million, fraudulent activities linked to tender awards and settlements, and unlawful financial flows benefitting individuals and entities.

"In addition to the preservation order, the SIU has filed a review application at the Special Tribunal to nullify the tender award and recover funds unlawfully paid to Groen Mintirho," the unit said.

Last month, Mabe appeared in court in relation to charges of fraud, theft and contravening the Public Finance Management Act and the Prevention of Organised Crime Act.

He, together with at least six other suspects, were released on bail.

"The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute civil action in the Special Tribunal or the High Court to correct any wrongdoing it uncovers in its investigation.

"The SIU refers the evidence pointing to criminal conduct to the National Prosecuting Authority for further action," the unit said.

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