SIU recovers over R2.4 million in unlawful Covid 19 PPE contract
The Special Investigating Unit (SIU) has obtained a Special Tribunal order requiring Nozihle Construction and Projects CC to repay more than R2.4 million to the Mpumalanga Department of Health after the company was found to have unlawfully benefited from a Covid 19 personal protective equipment (PPE) tender awarded in 2020.
The Tribunal ruling, delivered on 29 September, declared the April 2020 contract for 100 000 three ply surgical masks valued at R2.6 million invalid, as the company was not authorised by the South African Health Products Regulatory Authority (SAHPRA) to distribute medical devices.
According to the judgment, the recoverable amount of R2 427 333.30 represents the difference between what the department paid and the average market price set under National Treasury’s transversal contracts. The court also ordered Nozihle Construction to pay the SIU’s legal costs, including those of two counsels.
The SIU said the decision reinforces its commitment to protecting public funds and ensuring accountability for the misuse of emergency procurement processes. The Unit emphasised that suppliers who benefit from unlawful contracts are not entitled to any profit from the state.
The SIU confirmed that its broader investigation into Covid 19 procurement irregularities remains ongoing. Any evidence pointing to criminal conduct will be referred to the National Prosecuting Authority (NPA), while civil action will be pursued to recover losses and safeguard public resources.
The ruling adds to the SIU’s growing list of recoveries as it continues to reclaim billions of rands lost to corruption and maladministration during the national state of disaster.