Hawks investigating SA Navy fraud, theft, and corruption worth half a billion rand - DefenceWeb

Overview

The Hawks, officially known as the Directorate for Priority Crime Investigation (DPCI), are examining five cases of fraud, theft, and corruption within the South African Navy (SAN) totaling nearly half a billion rand. This information was disclosed on 12 November during a briefing to the Portfolio Committee on Defence and Military Veterans (PCDMV).

Scope of cases

During the briefing, the Hawks reported that:

The investigations trace back to 2009 and were referred to the Hawks after prior probes by Military Police faced delays and non-cooperation from some military officers.

“The Military Police took a long time to refer to cases and then military officers refused to cooperate with them.”

Notable SAN cases

One highlighted case involves a contract for maintenance and repairs of SA Navy surface and submarine vessels over three years. Allegations include tampering with bid documents using correction fluid (tippex), altered amounts, and forged signatures on bidding documents. The total tender value reported is R52,000,000. The case was initially reported by Military Police in 2018 and referred to the Hawks in July 2024.

“The appointment of the service provider whose documents were tampered with was irregular.”

The Hawks also flagged a separate SAN contract for spares for surface and submarine vessels, awarded in 2017/18 and valued at R395 million. Internal investigations allegedly found that sub-standard spares were supplied to the SA Navy, with claims that the items were procured in Germany when they were procured locally. This case was reported by Military Police in 2018 and referred to the Hawks in mid-2024; witness statements are being collected.

“Internal investigations reveal that the service provider supplied the SA Navy with sub-standard spares, claiming that the spares were procured in Germany whilst they were procured locally.”

Another case involves the SAS Umzimkhulu, covering invoices for work performed between November 2015 and February 2021. The service provider was paid R16 million without the Navy being aware that services were never rendered, as confirmed by an internal investigation. This case was reported by Military Police in 2021 and referred to the Hawks in July of the previous year. Seven statements have been obtained to date.

“The R16 million contract was awarded to GRIMMS.”

According to coverage by the Sunday Times, the R16 million contract for GRIMMS incurred scrutiny, with GRIMMS founder Shafiek Hendricks disputing the allegations.

Context and ramifications

These cases form part of broader efforts to root out corruption, fraud, and mismanagement within defence-related portfolios, with figures cited indicating losses and irregularities spanning multiple departments and years. Today’s proceedings underscore ongoing oversight challenges and the need for robust internal controls in defence procurement.

“Investigations cut across fraud, corruption, theft and violations of the Public Finance Management Act.”

Author’s note

Summary: The Hawks are pursuing five major SAN fraud cases totaling about R500 million, including tampered bids, forged signatures, and phantom invoices, as presented to Parliament, highlighting persistent defence procurement vulnerabilities and interdepartmental accountability. (Author’s note: 120–200 characters)

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defenceWeb defenceWeb — 2025-11-18

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