Billions Lost, Trust Shattered: SIU and Hawks Uncover Deep Rot in South Africa’s Defence Department

Billions Lost, Trust Shattered: SIU and Hawks Uncover Deep Rot in South Africa’s Defence Department

South Africa’s defence sector, long viewed as a pillar of national security is facing an integrity crisis of staggering proportions. Parliament was shaken this week as the Special Investigating Unit (SIU) and the Hawks laid bare a web of corruption, fraud, and financial mismanagement worth billions of rands within the Department of Defence and Military Veterans.

It was not just another committee meeting, it was a reckoning.

Cracks in the Armour: How Billions Vanished

SIU head Advocate Andy Mothibi told MPs that investigations had uncovered “deep-rooted corruption” stretching from inflated COVID-19 tenders to irregular software licensing deals and questionable international drug imports.

Among the most shocking discoveries was a R467 million Microsoft licensing deal for software that the department never even used. Two suppliers, EOH Mthombo and SoftwareOne, were handed contracts without competitive bidding or proper budget approval. Earlier this year, the Special Tribunal declared the SoftwareOne contract unlawful, ordering the company to pay back R257 million.

And that’s only one file in a stack of scandals.

Inflated PPE Deals and Frozen Pensions

When the COVID pandemic hit, the department’s procurement systems became a feeding trough. The SIU flagged R273.5 million in inflated PPE tenders, leading to 33 criminal referrals and orders to freeze officials’ pensions.

In another eyebrow-raising case, the department spent R217 million importing “Heberon” drugs from Cuba a medicine not approved for use in South Africa. Of the nearly one million vials imported, only 15 were used before the rest were sent back. A R33 million civil recovery process is now underway.

Denel: The Giant that Fell from Grace

The state arms manufacturer Denel, once the pride of South African engineering, has become a cautionary tale in public sector decay. The SIU’s findings revealed the collapse of internal governance, with millions vanishing in Project Hoefyster and a Chadian military vehicle deal where advance payments went unaccounted for.

Mothibi didn’t mince words: “The scale of financial leakage demands urgent accountability.”

Hawks Uncover a Second Layer of Corruption

Adding to the SIU’s findings, Hawks Acting Head Lt-Gen Siphesihle Nkosi revealed 14 ongoing corruption and fraud investigations, totalling more than R360 million in potential losses.

From forged bid documents and manipulated tenders to a R52 million Navy contract allegedly altered with Tippex, the details painted a grim picture of systemic rot.

One especially shocking revelation involved engine repairs for the SAS Umzimkulu, where R16 million was paid for work never completed. Similar fraud surfaced in a R3.8 million project for the SAS Drakensberg.

Military Veterans and Ghost Contracts

The corruption didn’t stop at the uniform’s edge. The Department of Military Veterans is now under investigation for four separate cases, including a R100 million travel contract awarded without tender, R43.5 million in irregular procurement, and a R135 million training equipment deal that appears to have benefited no one.

The Hawks are also probing the alleged theft of R40 million from the SANDF’s Group Life Investment Scheme, money meant for soldiers’ death and injury benefits.

A Nation’s Security at Stake

Public frustration has been palpable. On social media, citizens have called the revelations “a betrayal of soldiers and taxpayers alike,” while others lamented that the department tasked with defending South Africa “can’t even defend its own finances.”

For a country grappling with rising crime and political tension, the erosion of trust in the defence sector hits hard. Analysts warn that without decisive action, the financial rot could compromise national security readiness and morale within the armed forces.

The Road to Accountability

Both the SIU and Hawks say they are pushing ahead with criminal prosecutions and civil recoveries. Parliament’s portfolio committee has demanded regular updates and stronger oversight mechanisms.

But for many South Africans, the bigger question remains: how did it get this bad?

Years of weak procurement oversight, political interference, and lack of accountability have hollowed out the very institutions meant to safeguard the nation. Rebuilding them will require more than investigations, it will demand political will and public vigilance.

The SIU and Hawks’ revelations are a mirror reflecting the broader struggle against corruption in South Africa. Billions may have been lost, but the hope now is that justice and reform, will not be.

{Source: The Citizen}

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