North West Municipality Awarded R25 Million Contract Over the Phone During COVID-19 Crisis
The Ditsobotla Local Municipality in the North West province of South Africa irregularly awarded a R25 million contract to a service provider for the supply of generators via a phone call during the COVID-19 pandemic in March 2020. The Special Investigating Unit (SIU) revealed the irregularities during a briefing to Parliament’s Standing Committee on Public Accounts (Scopa) on Wednesday, April 29, 2026.
Irregular Contract Award and Lack of Formal Documentation
According to the SIU, the Ngaka Modiri Molema District Municipality acted on behalf of Ditsobotla in awarding the contract for generators intended for a pump station. Initially, no formal contract or appointment letter was issued. The municipality later attempted to “rectify” the situation by establishing an emergency contract after the fact. Despite the lack of proper documentation, the service provider submitted invoices and received payments for work that was not completed, resulting in wasteful expenditure.
SIU Findings: Inflated Prices and Incomplete Work
The SIU’s investigation uncovered inflated generator prices and payments made for work that was not fully executed. Advocate Victoria Mdlalose, presenting the findings to the MPs, highlighted the irregularities and the resulting financial losses. The actions were labeled as criminal by both Members of Parliament and the SIU.
Ongoing Governance Challenges in Ditsobotla
The Ditsobotla Local Municipality has faced persistent challenges related to service delivery and governance, largely attributed to internal political conflicts. At one point, the municipality was operating with two mayors and two speakers simultaneously.
SIU’s Role and Mandate
The Special Investigating Unit (SIU) is South Africa’s dedicated agency for investigating corruption, serious malpractices, and maladministration. As stated on its official website, the SIU provides forensic investigation and civil litigation services to protect the interests of the state and the public. [Special Investigating Unit Website]
Disciplinary Referrals and Lack of Action
While disciplinary referrals were made regarding the implicated officials, no concrete action has been taken to address the misconduct. The case underscores ongoing concerns about accountability and transparency in local government procurement processes.