(1) In October 2012, as the Minister of Public Works I ordered an investigation into the conduct and management of security upgrades implemented by the Department of Public Works (DPW) at the President’s residence in Nkandla, KwaZulu-Natal.
The Task Team responsible for this investigation submitted their Report in January 2013 and made a number of recommendations that have a bearing on DPW. The Task Team, among other things, recommended that their report be referred to the Special Investigating Unit (SIU) for further investigation. As a result, the President issued Proclamation R59 of 2013 on 20 December 2013, to mandate the SIU to conduct an investigation into the affairs of the Department with respect to the security upgrades.
(2)(a) The Task Team’s Report did not make reference to the cost of individual houses in the police barracks. However, the investigation found that that the total cost of the South African Police Service (SAPS) and Department of Defence (DOD) needs, which includes accommodation, the Clinic, Park Homes, Helipads, etc., amounted to approximately R125 000 000.00. The cost of R6 million per individual house is not the result of an official departmental cost apportionment, and the department is also not aware how this amount was arrived at.
(2)(b) The finding was that the price for the mentioned items was probably inflated.
(3)(a) Steps have been taken to determine who was responsible for the irregularities, including the costs.
(3)(b) The officials who did not comply with Supply Chain Management (SCM) prescripts in the appointment of the contractors have been charged with misconduct and the disciplinary hearings are pending. The loss as a result of the over-design of the facilities/inflation of the price is claimed by the SIU from the architect, Mr. Minenhle Makhanya. The civil matter for the recovery is pending in the High Court.