18 November 2022 - 16:08The high court this week dismissed the SIU’s application to declare unlawful and void a hire-purchase agreement entered into in April 2014 between Kwane Capital and the Amahlathi municipality. Stock photo.The Special Investigating Unit has failed in its attempt to recoup more than R92m paid by the Amahlathi local municipality in the Eastern Cape to businessman Mcebisi Mlonzi.
to the municipality for three years. The contract was awarded without going through the competitive bid process, but went through as a deviation. The municipality and Mlonzi, who opposed the SIU’s application, maintained there was compliance on the deviation from the normal statutory procurement process and denied misrepresentation regarding the ownership which caused the municipality to enter into a hire-purchase agreement.
“In my view, considering all the objectives and the reasons given, the deviation in terms of section 63 of the municipal [supply chain management] policy was rational.
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