SIU wins R2. 4 million recovery from Construction Company in Mpumalanga PPE case
The Special Investigating Unit (SIU) has secured a Special Tribunal order compelling Nozihle Construction and Projects CC to repay R2,427,333.30 to the Mpumalanga Department of Health, after a court found that the company unlawfully benefited from a Covid-19 personal protective equipment (PPE) contract awarded in 2020.
The Special Tribunal judgment, delivered on September 29, declared the April 2020 contract for 100,000 three-ply surgical masks, valued at R2.6 million, unlawful and void, as the company was not licensed with the South African Health Products Regulatory Authority (SAHPRA) to distribute medical devices.
SIU spokesperson Kaizer Kganyago said the ruling underscored the Unit’s determination to protect public funds.
“This judgment is a clear indication that the SIU will not tolerate the abuse of emergency procurement processes,” he said. “We are committed to ensuring that every cent irregularly paid out is recovered and returned to the state.”
According to the Tribunal, the recoverable amount reflects the difference between what the department paid and the average market price under National Treasury’s transversal contracts.
The court also ordered Nozihle Construction to pay the SIU’s legal costs, including those of two counsels.
Kganyago added that the outcome affirmed the principle that illegal contracts carry no benefit for suppliers.
“The Tribunal confirmed that any transaction performed in contravention of statutory requirements is void, and such suppliers have no entitlement to profit from the state,” he said.
He further confirmed that the SIU would continue its wider Covid-19 procurement investigations. “The SIU will refer any evidence of criminal conduct to the National Prosecuting Authority (NPA) and pursue civil action where necessary to safeguard public resources,” said Kganyago.
The ruling marks another success in the SIU’s ongoing drive to recover billions lost to corruption and maladministration during the national state of disaster.
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