By Johnathan Paoli
President Cyril Ramaphosa has mandated the Special Investigating Unit to probe allegations of procurement irregularities and maladministration involving contracts at the Vaal University of Technology (VUT).
Signed under Proclamation 217 of 2024, this authorisation empowers the SIU to scrutinise the VUT’s procurement and contracting processes, with a focus on two significant contracts awarded in 2018. They were for the refurbishment of student residences and campus security services.
The investigation is expected to assess whether these contracts were awarded in a manner consistent with the principles of fairness, transparency, competitiveness and cost-effectiveness, as mandated by the Public Finance Management Act and National Treasury guidelines.
The SIU will also evaluate whether VUT officials complied with legislative procedures, including procurement regulations and standards set by the Treasury, as well as recommend corrective actions or seek legal recourse to recover public funds that may have been misused.
Reports indicate that payments made for the refurbishment work may have exceeded the original project scope, with potential evidence of inflated costs or overpayment.
The campus security contract was outsourced. Allegations of inflated fees, inadequate service delivery and possible favouritism have emerged.
In 2020, security company Kya Guards contested the awarding of this contract to PhiriPhiri Security Services, claiming that VUT had unfairly favoured PhiriPhiri over other bidders.
Kya Guards took the matter to the Johannesburg High Court, challenging VUT’s decision and in December 2020, Judge Thina Siwendu issued an order prohibiting VUT from proceeding with the contract until the case’s full merits were assessed.
Kya Guards argued that it was the preferred bidder and that PhiriPhiri’s selection contravened the university’s supply chain policies.
According to Kya’s CEO, Lance Maphosa, a whistleblower informed them of potential improprieties in the evaluation process, which allegedly favoured PhiriPhiri.
In response, VUT denied any wrongdoing, with legal representative Daniel Fouché defending the university’s position, stating that all procurement procedures had been followed correctly.
PhiriPhiri’s lawyer, Dirk Kotze, also denied any irregularities in the tender’s award, asserting that the process complied with legal standards.
If the SIU uncovers instances of fraud, corruption or other improper conduct, it has the authority to institute civil proceedings in either the High Court or a Special Tribunal; as well as seek restitution for any financial losses.
This probe comes as the university struggles with broader governance and financial challenges.
Following years of financial instability and declining income, VUT was placed under administration in 2019, with a succession of vice-chancellors attempting to stabilise the institution.
The most recent VC, Stephen Ndlovu, appointed in February 2024, has initiated efforts to address financial mismanagement, delayed infrastructure projects and governance issues.
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