Service providers ordered to pay back PPE profits

The Special Tribunal has ordered 16 service providers to pay back some R21 million in profits linked to alleged irregularly awarded Personal Protective Equipment (PPE) contracts.

The contracts were awarded by the KwaZulu-Natal Department of Social Development (KZN DSD) during the height of the COVID-19 pandemic.

The order emanates from a probe by the Special Investigating Unit following a provincial Treasury investigation into the KZN DSD.

“The Treasury investigation concluded that PPE was procured from 16 service providers in 18 contracts, with a total cumulative value of R21 242 955.95. The report further recommended disciplinary action against several officials and the registration of a criminal case.

“The SIU [Special Investigating Unit] processed the report through its processes and systems and identified significant shortcomings in the initial investigation. The report did not evaluate potential financial recoveries or quantify the state’s losses. Additionally, no efforts were made to recover funds lost due to overpricing or irregular procurement practices.

“The SIU [investigation] found that all service providers charged rates that exceeded the pricing guidelines set by the National Treasury. Consequently, the SIU has initiated proceedings in the Special Tribunal to recover the overpayments,” the SIU said in a statement on Tuesday.

The corruption busting unit said any criminal conduct will be referred for prosecution.

“In line with the Special Investigating Unit’s and Special Tribunals Act 74 of 1996 (SIU Act), the SIU refer[s] any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

“Under the SIU 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,” the SIU concluded. – SAnews.gov.za