The Special Investigating Unit (SIU) has secured a court order for the recovery of over R2- million following a Special Tribunal judgment that declared the multimillion-rand Personal Protective Equipment (PPE) contract unlawful.
This was revealed by SIU spokesperson Kaizer Kganyago in a media statement on Thursday.
Kganyago said the Special Tribunal ordered Nozihle Construction and Projects CC to repay the R2,427,333.30 amount to the Mpumalanga Department of Health.
He said the order, which was handed down on September 29, relates to an April 2020 contract for the supply of 100,000 3-ply surgical masks, valued at R2, 645 000.
Contract was unlawful and void
“The tribunal found that the contract was unlawful and void. Because Nozihle Construction and Projects CC was not licensed as a distributor of medical devices with the South African Health Products Regulatory Authority (SAHPRA), as mandatorily required by the Medicines and Related Substances Act, 1965.
“The order affirms the SIU’s argument that any transaction performed in contravention of statutory prohibition is void. The recoverable amount of R2,427,333.30 represents the difference between the price paid by the department and the average price for masks on the National Treasury’s transversal contracts,” said Kganyago.
“In addition to the financial recovery, the Special Tribunal set aside the contract. It ordered Nozihle Construction … to pay the SIU’s costs, including the costs of two counsel.
Relentless efforts to recover stolen funds
“This judgment is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the Covid-19 national state of disaster. It sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the state. And the SIU will use its litigation powers to the fullest to ensure such funds are returned.
“In line with the [SIU] and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the NPA for further action.
“Under Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name. To address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration,” said Kganyago.
