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SIU granted order to freeze pension benefits of official linked to the multi-billion Rand Giyani Water Project

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PHUTI MOSOMANE

THE Special Investigating Unit (SIU) has obtained a preservation order to freeze pension benefits of Carel Schmahl, former General Manager of Operations at Lepelle Northern Water (LNW), to the value of approximately R10.2 million.

The SIU said its investigation revealed that 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 for a project to provide clean water to villages in Giyani, Limpopo Province, as an intervention by the Department Water and Sanitation.

Initially, 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 those involved following supply chain processes governing public procurement.

The Giyani Bulk Water Project was initiated in 2014 and was envisioned to benefit close to

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