Special Tribunal Nullifies R257 Million PPE Contract Awarded By GDoH

The Special Tribunal ruled that an R257 million COVID-19 personal protective equipment (PPE) contract, given to Nkhane Projects and Supply, awarded by the Gauteng Department of Health (GDoH) is invalid and has been set aside.

The Special Investigating Unit (SIU), an anti-corruption, forensic investigation and litigation agency, brought the case to the tribunal, arguing that the contract did not follow the rules of the Public Finance Management Act (PFMA) and should be overturned.

"The SIU's application to the Special Tribunal followed an investigation that found Nkhane had made an unsolicited proposal to the GDoH outside of a competitive bidding process," the SIU said, SA News reported.

It added, "No request was made for a deviation from normal procurement procedures, and none of the required procurement prescripts were followed. In the judgment, the Tribunal ordered Nkhane to submit audited statements within 30 days, detailing its income and expenses related to the PPE delivered under the invalidated contracts."

The tribunal ruled that Nkhane must support its statements with expert reports and cover the SIU's legal costs including fees for two lawyers if needed.

This ruling is also expected to end the High Court case where Nkhane was seeking R89,350,280.10 from the GDoH. This amount includes R60,863,045.90 for goods delivered but not yet paid for, and R28,487,234.20 for goods ordered but not accepted by the GDoH.

The SIU, which had paused the High Court case until the tribunal case was resolved, stated that this judgment is an important step in fighting corruption and ensuring accountability in PPE procurement during the COVID-19 pandemic.

Last month, the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority, the SIU and the Directorate for Priority Crime Investigation (Hawks) seized assets and properties worth about R52.6 million in a major operation.

These assets are linked to 22 senior officials, service providers and entities involved in an alleged corruption network within the Mpumalanga Department of Public Works.

The seizure followed a court order from the High Court of South Africa, Mpumalanga Division, which allowed the AFU, SIU and Hawks to seize assets in Mpumalanga, Gauteng, North West and Western Cape provinces related to corruption in procuring PPE.