Home Crime Special Tribunal Scraps Irregular R113.2M PPE Contract, Orders Company to Refund Profits

Special Tribunal Scraps Irregular R113.2M PPE Contract, Orders Company to Refund Profits

by Central News Reporter
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Special Tribunal sets aside R24m Gauteng PPE contract

Special Tribunal

The Special Investigating Unit (SIU) has scored a significant win in the fight against corruption in South Africa, as the Special Tribunal delivered a striking judgment against financial malpractice in the public sector.

The Tribunal has found the R113.2 million personal protective equipment (PPE) contract awarded to the private company, LNG, by the Gauteng Department of Health to be invalid and has labelled the transaction as unlawful.

SPECIAL TRIBUNAL
SPECIAL TRIBUNAL

This comes as a heavy blow to the private entity, which has been mandated to return the benefits accrued from the contentious deal. The SIU approached the Special Tribunal with the intention to nullify the contract after their thorough probe into the dealings of the health department revealed serious irregularities.

The SIU unveiled that the department’s then Chief Financial Officer made an executive decision on procurement that ignored due process. “On 24 April 2020, the then Chief Financial Officer of Gauteng health department took a decision to procure 500,000 N95 masks at R55.50 each, 1,000,000 three-ply surgical masks at R18.00 each and 250,000 boxes of 100 sterile, powder-free surgical gloves at R270 per box,” the SIU stated.

Key findings unearthed by the SIU investigation into the Gauteng health department depicted a glaring disregard for proper procurement protocols. “An SIU investigation in the affairs of Gauteng health department has found that [a] competitive bidding process was not followed and deviation from this process was not duly approved, and the contracted prices were high,” the investigative unit disclosed in a statement.

The irregularities did not stop there. “Furthermore, the SIU found that LNG was not registered on the government’s Central Supplier Database for the supply of PPE [personal protective equipment] when it was awarded the multimillion-rand contract,” according to the unit’s findings.

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