SIU report lifts lid on PPE looting

Ramaphosa urges NPA to act swiftly

THE Special Investigating Unit (SIU) report into fraud and corruption has laid bare the looting of Covid-19 public funds.

Now President Cyril Ramaphosa is pinning his hopes on the National Prosecuting Authority (NPA) to “diligently and expeditiously prosecute” those who have been implicated.

The SIU has made 386 referrals to the NPA, as well as three referrals for executive action. The unit has made 330 referrals for administrative action, which includes blacklisting.

The rand value of cash and assets to be recovered on the basis of the probe is R551.5 million, while cash and assets recovered to date total R34.2m. The value of potential loss prevented by the probe is R114.2m, while contracts set aside amount to R170.4m.

The SIU found that a controversial camp for the homeless, erected in Strandfontein, had incurred irregular expenditure to the tune of R42m. The SIU was in the early stages of civil litigation to recover the funds. The 737page report paints a grim picture of widespread looting and the collusion of senior government officials who awarded personal protective equipment (PPE) tenders to their friends and relatives.

In the Western Cape, the report states that the Matzikama Municipality had irregularly concluded a R650 378 contract with the Rural Impact Training Centre. The SIU had applied to the Western Cape High Court to have the contract set aside and for the losses to be recovered. That case will be heard on February 3.

The SIU also found that the Western Cape Education Department had failed to adequately test the market when it entered into an agreement with Masiqhame Trading for the supply of cloth masks, and fingered three department officials for possible dereliction of duty.

In the report, the SIU gives detailed accounts of how it had to approach the Special Tribunal to set aside the R266m tenders allocated to Digital Vibes; R172m PPE tenders awarded to controversial businessman Hamilton Ndlovu by the National Health Laboratory Services (NHLS). The trial date for the NHLS is set for March 11 and 12.

The SIU will soon face off with the director of Zakheni Supplies, Tembile Sangoni, for the cancellation of R103.7m PPE contract awarded to him on April 20, 2020, by former Gauteng CFO Kabelo Lehloenya.

According to the report, Sangoni was a close friend and business partner of Loyiso Masuku, wife of former Gauteng Health MEC Bandile Masuku.

The SIU also complained to Ramaphosa that provincial governments such as Gauteng, KZN and the Eastern Cape had been slow to discipline officials fingered in wrongdoing.

The SIU has investigated 5 467 contracts awarded to 3 066 service providers with a total value of R14.3 billion.

Investigations into 4 549 contracts have been finalised, of which 2 803 were found to be irregular – amounting to 62% of the finalised investigations.

Ramaphosa said: “The submission of the final report is an important step in our fight against corruption in the public and private sectors, and against maladministration.

“It is unacceptable that so many contracts associated with saving lives and protecting livelihoods were irregular, unlawful or fraudulent. This investigation demonstrates our determination to root out corruption and to deal with perpetrators.

“The final report details matters referred by the SIU to the NPA, departments and entities in the public sector and other parties, who will finalise the process of bringing wrongdoers to book and addressing weaknesses identified by the SIU investigation.”

A total of 45 matters, constituting a combined value of R2.1bn, were enrolled with the Special Tribunal on Corruption, Fraud and Illicit Money Flows.