SIU granted preservation order against former Lepelle Northern Water official
The Special Investigating Unit (SIU) has been granted a preservation order to freeze R10.2 million worth of pension benefits belonging to a former general manager of operations at Lepelle Northern Water.
Carel Schmahl is being investigated for his role in the collapse of the R3 billion Giyani water project meant to provide clean water to 50 villages in Limpopo.
SIU spokesperson Kaizer Kganyago says Schmahl allegedly tempered with resolutions of a task team meeting and used cost estimates of another company to motivate for the appointment of LTE Consulting.
"LTE Consulting was appointed to build wastewater and water infrastructure to supply Giyani villages with clean water to the value of R90.9 million. However, the contract ballooned to R2.2 billion in 30 days without following supply chain processes governing public procurement," says Kganyago.
Kganyago says the Special Tribunal granted SIU the preservation order pending the finalisation of a civil action brought by the anti-corruption agency.
"The order interdicted and restrained Bidvest Umbrella Pension Fund, Bidvest Wealth & Employee Benefits (Pty) Ltd, and Alexander Forbes Financial Services (Pty) Ltd T/A Alexander Forbes Retirement Fund from paying out pension benefits due to Schmahl.”
Schmahl was dismissed from Lepelle Northern Water in December 2022.
"Furthermore, SIU investigation revealed that Schmahl allegedly committed gross dishonesty by misrepresenting resolutions of a task team appointed to advise the Department of Water and Sanitation on intervention, and his actions have resulted in financial losses by the state," adds Kganyago.
ALSO READ
