Cape Argus

SA Tourism faces heat as SIU probes alleged financial chaos and phantom service payments

Mthobisi Nozulela|Published

The Special Investigating Unit (SIU) has been given the green light to probe the South African Tourism Board over allegations of financial mismanagement

Image: Ayanda Ndamane/Independent Newspapers

The Special Investigating Unit (SIU) has been given the green light to probe the South African Tourism Board over allegations of financial mismanagement and payments for services that were never delivered.

The SIU confirmed that President Cyril Ramaphosa signed Proclamation 297 of 2025, authorising the investigation. The unit will focus on media buying contracts between March 2020 and November 2025, examining whether the deals were fair, transparent, and in line with government procurement rules.

"The investigation will determine whether the media buying contracts and related payments were conducted in a manner that was not fair, competitive, transparent, equitable, or cost-effective. The SIU will also examine potential violations of applicable legislation, including instructions or guidelines issued by the National Treasury," the SIU said.

"Additionally, the Unit will assess whether the procurement adhered to the internal manuals, policies, and procedures of SA Tourism, particularly concerning payments for services that were not rendered".

This comes amid a period of serious instability at SA Tourism. In August 2025, the board suspended CEO Nombulelo Guliwe following allegations of financial misconduct, which reportedly included a prepaid amount of R4.1 million for services that were allegedly never delivered.

The SIU added that it has the authority to investigate any related unauthorised, irregular, or fruitless and wasteful expenditure incurred by the board or the state. This includes scrutinising contracts where payments were made for services that were either not delivered or not fully executed.

The scope of the investigation also extends to any officials, employees, suppliers, or other parties who may have been involved in the alleged irregularities

"In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

"The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered".

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