Special Investigating Unit (SIU)
By Mpho Moloi
The Special Investigating Unit (SIU) has recommended disciplinary action against at least 25 officials within the Ministry of Defence following the unlawful procurement of a Cuban drug, interferon, during the COVID-19 pandemic. Intended to enhance soldiers’ immune systems, this drug is not registered for use in South Africa.
On Tuesday, the SIU informed Parliament’s Standing Committee on Public Accounts (SCOPA) of its plans to initiate legal proceedings to recover over R33 million paid for the initial consignment of the drug, which was subsequently returned to Cuba.Special Investigating Unit (SIU)On Tuesday, the SIU informed Parliament’s Standing Committee on Public Accounts (SCOPA) of its plans to initiate legal proceedings to recover over R33 million paid for the initial consignment of the drug, which was subsequently returned to Cuba.
Unlawful Procurement Process
In 2020, the Department of Defence utilised a cooperation agreement with Cuba to import interferon without adhering to standard procurement protocols. SIU Chief Operating Officer Leonard Lekgetho highlighted that there was no allocated budget for the R217 million intended for the purchase of more than 930,000 vials of the drug.
Lekgetho stated, “The department did not procure interferon from Cuba by means of a competitive bidding process, that’s the finding and the military command council exercised the power they did not have when they approved the procurement of the drugs.”
Regulatory Non-Compliance and Financial Implications
The South African Health Products Regulatory Authority (SAHPRA) intervened, identifying the illegal use of the unregistered drug. Following this, the Department of Defence returned the drugs to Cuba in 2022 and refrained from paying for the second and third consignments.
Out of the entire consignment, only 15 vials were opened: ten administered to a patient at One Military Hospital and five subjected to testing by SAHPRA.
Lekgetho noted, “The interferon was found not to be fit for purpose by SAHPRA and as such, payments that the department of defence made to Cuba was fruitless and wasteful expenditure.”
Legal Actions and Accountability
The SIU has announced the commencement of civil proceedings to recover the R33 million spent on the initial consignment and to nullify the procurement agreement. Notably, the SIU found no evidence of criminal intent, collusion, or kickbacks among the department’s officials involved in the procurement process.
Background and Previous Investigations
This incident is not the first time the Department of Defence’s procurement practices have come under scrutiny. In 2022, the Public Protector found that the department had improperly procured interferon from Cuba without following due process, resulting in significant financial losses. 
Defence Minister Nosiviwe Mapisa-Nqakula acknowledged awareness of the procurement and had previously appointed a task team to investigate the matter. 
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