Nine arrested in R75m Eastern Cape water tanker scandal as SIU tightens grip

As communities queue with buckets and tanks in the middle of a worsening water crisis, news of a R75 million water tanker tender gone wrong has hit a raw nerve.

This week, the Special Investigating Unit (SIU) confirmed that nine people have been arrested in connection with an allegedly illegal procurement deal at the Alfred Nzo District Municipality in the Eastern Cape.

For residents who have long complained about dry taps and unreliable service delivery, the arrests feel like both vindication and heartbreak.

A tender meant to deliver water

According to the SIU, the contract valued at R75 million was meant to secure a “yellow fleet”: six trucks, six sprinkler water tankers and three jet vacuum tankers to assist with water supply, sanitation and infrastructure support.

Instead, investigators say the deal was riddled with irregularities from the start.

The contract was awarded to Kwane Capital (Pty) Ltd without proper budget approval and in violation of municipal supply chain regulations. The SIU found that the municipality entered into agreements that were unlawful and invalid.

In simple terms: the paperwork didn’t add up, and neither did the process.

Fraud, misrepresentation and inflated costs

The investigation revealed that Kwane Capital allegedly misrepresented ownership of the vehicles and unlawfully used the name of Avis Fleet to secure the deal. Authorities also uncovered fraudulent licensing and vehicle examination practices.

In one of the more startling findings, roadworthy certificates were issued even though GPS data showed the vehicles had never been to the testing stations.

The financial implications are severe. The municipality is said to have suffered an actual or potential loss of R60.7 million due to overcharging and excessive profit margins.

The accused aged between 43 and 73, including two corporate entities appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court on charges of fraud, corruption, money laundering and contravention of the Municipal Finance Management Act. Each was granted bail of R10 000.

The arrests were carried out by the Hawks’ Serious Corruption Investigation and Serious Commercial Crime Investigation units, working alongside other law enforcement agencies.

Why this case hits differently

Water tenders are not just numbers on a spreadsheet especially in the Eastern Cape.

In many rural parts of Alfred Nzo, water tankers are a lifeline. When municipal systems fail or infrastructure breaks down, these trucks become the difference between access and desperation.

Over the past few years, residents across the province have repeatedly protested over unreliable supply. In some villages, community members wake up before dawn to secure a place in line when tankers arrive.

That’s why social media reaction to the arrests has been fierce. Many residents are asking how a contract meant to ease suffering could allegedly be manipulated for profit.

“This is money that should have brought water to our homes,” one local user posted on Facebook. “Instead it filled pockets.”

SIU moves to recover losses

The SIU has not stopped at criminal referrals. It has also approached the Special Tribunal to review and set aside the contract, seeking to recover financial losses suffered by the municipality.

The matter was referred to the National Prosecuting Authority after investigators uncovered evidence of serious maladministration and corruption.

For a country already battling aging infrastructure, shrinking budgets and growing demand for basic services, this case underscores a painful reality: corruption doesn’t just steal money it steals dignity.

A bigger picture in a thirsty nation

South Africa’s water crisis is deepening. From Gauteng’s “water shifting” debates to chronic shortages in parts of the Eastern Cape, supply systems are under strain.

When tenders linked to water delivery are compromised, public trust erodes even further.

The SIU has welcomed the arrests as a step toward accountability. But for residents of Alfred Nzo, the real measure of justice will be simpler: working trucks, clean water and municipal systems that serve the people they were designed to protect.

Until then, the yellow fleet remains a symbol not just of procurement gone wrong, but of a basic right that too many communities are still fighting to secure.