The Special Tribunal has set aside a R103-million tender awarded to Zakheni Strategic Supplies by the Gauteng department of health for the supply of personal protective equipment (PPE) in April 2020.
This after the Special Investigating Unit (SIU) applied for an order to review the PPE contract. According to the Special Tribunal, the SIU, which requested an order to set aside the contract, initially wanted to recover from Zakheni the amount of R21 239 472 accumulated profit.
In the judgment handed down on Wednesday, tribunal president judge Lebogang Modiba ruled that the contract was unlawful and ordered that Zakheni be stripped of all the profit accumulated under the contract.
Modiba also ordered Zakheni to render audit financial statements relating to the contract, documents in support of income derived from and expenditure incurred on the PPE contracts, and any other financial information relevant to the income derived from the deal within 30 days.
According to the tribunal, the tender was awarded to Zakheni without following regulations governing public procurement.
The tribunal said an SIU probe found that on April 19 2020, the department, through its chief financial officer Kabelo Lehloenya, received a quotation from Zakheni for the supply of PPE, and signed the quotation within 24 hours.
The contract stipulated that Zakheni would supply the department with PPE to the value of R103 770.
The Special Tribunal said on Wednesday: “During oral argument, the SIU abandoned the claim for the amount of R15 811 132.40, which it earlier sought to disgorge. Zakheni opposed the application and raised a number of preliminary points. The department did not enter the fray.
“Pursuant to the declaration of the state of emergency, the former chief financial officer Ms Kabelo Lehloenya received a quotation from Zakheni and subsequently issued a commitment letter, which she signed on the 20th April 2020.
“In terms of the commitment letter, Zakheni would supply PPEs to the department to the value of R103 770. This is the contract that the SIU seeks to review and set aside.”
The Special Tribunal added: “As grounds for review, the SIU relied on the alleged breach of the applicable regulatory provisions, and that the awarding thereof was tainted with turpitude.
“Zakheni denied that the contract was unlawful, irregular, and tainted with turpitude. Zakheni raised several points among them whether motion proceedings were appropriate in the circumstances, the Special Tribunal jurisdiction on the declaration of constitutional invalidity, and the SIU’s locus standi to seek Zakheni’s statement and debatement of account.”
Zakheni allegedly applied for various paragraphs and annexures of the SIU findings to be struck out, alleging that they contain speculative information.
“The SIU alleged that Mr Thembile Sangoni, director of Zakheni, is a family relation to one Ms Khusa Diko Sangoni, a former presidential spokesperson. Further reference is made to an order Sangoni placed with K Manufacturing for PPE supplies on behalf of an entity called Ledla Structural Development.
“The SIU concludes in the affidavit that due to his relationship with Diko Sangoni is a politically exposed person and that given non-compliance with the prescribed prescripts in awarding the impugned contract to Zakheni, the contract was awarded in furtherance of a corrupt scheme,” the tribunal shared.
Zakheni contended the allegations claiming that they consisted of inadmissible evidence which was prejudicial to their case. According to the tribunal, the company also contended that it was not permissible to bring an illiquid claim by means of motion proceedings, however, the claims were dismissed.
Yet another multimillion PPE tender awarded by @GautengHealth declared invalid and unlawful. A R103M tender awarded to Zhakeni Strategic Supplies has been reviewed and set aside by @TribunalSpecial. Zakheni was ordered to pay back all profit earned from the unlawful PPE tender. pic.twitter.com/9uicAcBrDG
— Special Investigating Unit (SIU) (@RSASIU) June 29, 2022
The SIU continues to fulfil its mandate by implementing its investigation outcomes and consequence management to recover assets and financial losses suffered by the state.
Mpumalanga co-operative governance and traditional affairs head of department, Samukelo Ngubane, was named as one of the culprits who plundered the state’s fund through PPE tenders.
Ngubane was let out on bail on June 7. He was named among three other suspects accused of plundering about R6-million in PPE tender funds.
His case was postponed to July 28 for further investigation and joinder with co-conspirators.
Flamboyant Hamilton Ndlovu was another. On the same day Ngubane was released on bail, Ndlovu topped the headlines after the tribunal ordered him to pay back R158-million scored in PPE tenders awarded by the National Health Laboratory Service.
According to the SIU, the tender was declared invalid and unlawful.
To read more, read: Mpumalanga Cogta head out on bail for PPE tender fraud
Flamboyant Hamilton Ndlovu ordered to repay R158m scored in PPE fraud
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