The Special Investigating Unit (SIU) has welcomed a judgment by the North Gauteng High Court in Pretoria dismissing two applications by a company that was unlawfully awarded a personal protective equipment (PPE) contract in 2020 at the height of Covid-19.
On Tuesday, the SIU said that on June 10 2024 the Pretoria High Court dismissed two applications from LNG Scientific.
The investigative body said the first appeal questioned whether the appellant (LNG Scientific) had the right to access the record of the review proceedings before the Special Tribunal according to the Uniform Rules of Court.
Lawfulness and validity of the Special Tribunal’s ruling
The second appeal focused on the lawfulness and validity of the Special Tribunal’s ruling on the PPE contract, and whether the order had an immediate effect or was suspended.
“The court found that the order had a final and conclusive impact but was not suspended. Since the notice of appeal was not filed on time, the High Court dismissed it,” said the SIU.
The SIU said that on February 7, the Special Tribunal declared that the PPE contract that was awarded to LNG Scientific was invalid and irregular. It ruled that LNG be divested of all profits enjoyed under the invalid contract.
“An SIU investigation revealed that on 4 April 2020, the then Chief Financial Officer of the Gauteng health department decided 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 investigation into the affairs of the department found that a competitive bidding process was not followed. Deviation from this process was not duly approved. And the contracted prices were high,” said the SIU.
Not registered on government database
The SIU said it found that LNG was not registered on the government’s central supplier database. It was not registered for the supply of PPE when it was awarded the multimillion rand contract.
“The SIU was directed by President Cyril Ramaphosa… to investigate allegations about the contract. [Theses were allegations] of corruption, maladministration, malpractice, and payments made by state institutions. They were relating to PPE procurement, together with the conduct of state employees. The directive was in terms of Proclamation R23 of 2020.
“The SIU is empowered to institute a civil action in the High Court or a Special Tribunal in its name. This to correct any wrongdoing uncovered during both investigations. …As caused by acts of corruption, fraud, or maladministration. In line with the SIUs and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action,” said the SIU.
