MTN Loses Tribunal Bid Over R10 Million COVID-19 Cellphone Deal

by Selinda Phenyo
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MTN

By Phenyo Selinda

Polokwane – MTN has lost a Special Tribunal exception application concerning the alleged irregular supply of mobile devices for COVID-19 screening to the Limpopo Department of Health. This ruling follows a thorough investigation by the Special Investigating Unit (SIU).

The SIU initiated an investigation into the Limpopo Department of Health’s affairs, which, according to the unit, “revealed that MTN made an unsolicited proposal to supply the department with 10 000 cell phone devices intended for COVID-19 mass screenings” in the province.

Controversial R10 Million Deal

The SIU’s investigation found that the proposal from MTN cost the department R10 million, a figure that falls outside the guidelines of the Public Finance Management Act (PFMA). The Department of Health accepted the proposal and took delivery of the devices.

The SIU’s findings further indicated that the former Head of the Department, Dr Thokozani Florence Mhlongo, as the accounting officer, allegedly exposed the department to wasteful expenditure by authorising the procurement and payment for the 10 000 cell phones. “The department could only manage to distribute 388 of the 10 000 cell phones between September 2020 and March 2021, and the cell phones were distributed without the required screening application,” the SIU noted.

Legal and Financial Repercussions

As a result of these findings, the SIU has taken civil action in the Special Tribunal to “review and set aside the contract and recover financial losses suffered by the Limpopo Department of Health”. The SIU successfully interdicted the pension payout of Dr Mhlongo after her resignation amidst pending disciplinary action.

“The SIU is also empowered to institute civil action in the High Court or a Special Tribunal in its name to address any wrongdoing uncovered during investigations related to acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action,” the unit added.

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