Buffalo City Metro faces SIU investigation

President Jacob Zuma has ordered a special investigation into allegations of serious maladministration in East London‚ where the ANC municipality is accused of misusing ratepayers’ money.

Buffalo City Metro municipal manager Andile Fani‚ who earns an annual salary of R2.3-million‚ was placed on precautionary suspension earlier this month.

Zuma’s office said in a statement today that he had signed a Proclamation authorising the Special Investigating Unit (SIU) to investigate the affairs of the Buffalo City Metro‚ specifically:

“Any alleged:

(a) Serious maladministration in connection with affairs of the Municipality;

(b) Improper or unlawful conduct by employees of the Municipality;

(c) Unlawful appropriation or expenditure of public money or property;

(d) Unlawful irregular or unapproved acquisitive act‚ transaction‚ measure or practice having a bearing upon State property.

(e) Intentional or negligent loss of public money or damage to public property."

The SIU’s mandate also includes a probe into any offences under the Prevention and Combating of Corrupt Activities Act‚ and any unlawful or improper conduct “which has caused or may cause serious harm to interests of the public”.

The investigation will cover alleged offences that took place between February 1 2008 and September 2015.

The city’s current acting municipal manager is chief financial officer Vincent Pillay‚ an appointment which caused discontent among the opposition. The PAC’s Jerome Mdyolo said tender processes might be compromised because the man tasked with authorising decisions of the adjudication panel would also be liable for authorising payments‚ “a clear conflict of interests”.

Fani’s suspension – pending an independent inquiry — came amid allegations that a construction company was paid more than R2-million despite no budget approval and a senior manager’s accusation of intimidation and harassment after he allegedly left a threatening voicemail.