PPE procurement irregularities revealed

The head of Special Investigations Unit (SIU), Advocate Andy Mothibi, released a report of finalised investigations and outcomes of investigations into allegations on the Personal Protective Equipment (PPE) procurement by state institutions on 05 February 2021. 

In the report, a total of 30.7 billion was spent by State institutions between April and November 2020 of which R13 334 240 581 is subject to the SIU investigation. A total of 2 556 Personal Protective Equipments contracts were awarded to the value of over R13,3 billion are also under the SIU investigation.

During his report, Mothibi said disciplinary action needs to be taken against certain officials involved in the irregularities. A total of Twenty-five referrals have been made to various State institutions for the institution of disciplinary action for misconduct and contravening of the supply chain management policies and sections of the PFMA and the MFMA.

In the Free State Province six referrals have been made against a Senior Manager, the CEO of an entity and the entity on the charges of fraud. The case is currently being investigated the Hawks.

The report revealed that companies awarded contracts were not registered on the Central Supplier Database, certain service providers in the de-registration process when they quoted and were awarded contracts. In addition political pressure seems to have played a role in the procurement of Personal Protective Equipment.

It was reported in July 2020 that President Cyril Ramaphosa‘s spokesperson, Khusela Diko, went on a special leave after concerns about the awarding of Gauteng health department PPE contracts to a company linked to her husband.

The SIU is collaborating with the NPA providing prosecutors to guide investigations.

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