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SowetanLive reports that the Special Tribunal has granted the Special Investigating Unit (SIU) a preservation order to freeze R10.2m in pension benefits of a former Lepelle Northern Water (LNW) official linked to the Giyani Water Project.
The pension of former general manager of operations at LNW, Carel Schmahl, will be frozen pending finalisation of a civil action brought by the SIU. Schmahl, who was fired in December last year, is accused of tampering with the resolutions of a task team meeting. He is alleged to have used cost estimates of another company to motivate for the appointment of LTE Consulting for a project to provide clean water to villages in Giyani, Limpopo, as an intervention by the department of water and sanitation. The project started in 2014 and was intended to supply water to 55 villages. According to the SIU, LTE Consulting was appointed to build wastewater and water infrastructure to supply the villages with clean water to the value of R90.9m. But the contract ballooned to R2.2bn in 30 days without following supply chain processes governing public procurement. SIU investigations have revealed that Schmahl's conduct was inconsistent with the National Treasury practice note on supply chain management in that he did not perform his duties with integrity and was not fair and impartial. "The [Special Tribunal] order interdicted and restrained Bidvest Umbrella Pension Fund, Bidvest Wealth & Employee Benefits, and Alexander Forbes Financial Services T/A Alexander Forbes Retirement Fund from paying out pension benefits due to Schmahl," the unit's spokesperson Kaizer Kganyago advised.
- Read the full original of the report in the above regard by Jeanette Chabalala at SowetanLive
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