By Phenyo Selinda
Johannesburg — The Special Tribunal has declared a R257 million contract for COVID-19 personal protective equipment (PPE) awarded by the Gauteng Department of Health (GDoH) as invalid. The contract, which was awarded to Nkhane Projects and Supply, has been set aside following a thorough investigation by the Special Investigating Unit (SIU).
The SIU approached the Special Tribunal with the case after uncovering several irregularities in the awarding of the contract. According to the SIU, Nkhane Projects made an unsolicited proposal to the GDoH, bypassing the competitive bidding process required by law. No requests for deviations from the normal procurement procedures were made, and crucial prescripts under the Public Finance Management Act (PFMA) were not adhered to.
“The SIU’s application to the Special Tribunal followed an investigation that found Nkhane had made an unsolicited proposal to the GDoH outside of a competitive bidding process. No request was made for a deviation from normal procurement procedures, and none of the required procurement prescripts were followed,” the SIU stated.
The judgement by the Special Tribunal marks a pivotal moment in the ongoing efforts to bring those involved in COVID-19 related corruption to justice. The tribunal has not only invalidated the contract but has also ordered Nkhane Projects to submit audited financial statements within 30 days. These statements must detail the income and expenses related to the PPE delivered under the now-invalidated contract and be supported by expert reports.
Furthermore, Nkhane Projects has been ordered to cover the SIU’s legal costs for the application, including the fees for two counsels where applicable.
“This judgement is expected to bring an end to the High Court case where Nkhane demanded payment of R89 350 280.10 from the GDoH. This amount includes R60 863 045.90 for goods already delivered but not yet paid for by the GDoH, and R28 487 234.20 for goods ordered by the GDoH but which the department is refusing to accept delivery of,” the SIU added.
The High Court case was formally stayed by the SIU, pending the outcome of the Tribunal’s decision. With this judgement, the efforts to curb corruption in the procurement of PPE during the COVID-19 pandemic have taken a significant step forward.
The SIU hailed the ruling as a crucial step in ensuring accountability for those who exploited the health crisis for personal gain. “This judgement signifies a crucial step in addressing corruption and ensuring accountability in PPE procurement during the COVID-19 pandemic,” the SIU remarked.
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