The Sunday Independent

PPE contracts null and void

‘Officials disregarded the norms and standards and dished out the contracts as though it was giving candy to school children’

KARABO NGOEPE karabo.ngoepe@inl.co.za

THE Special Investigating Unit (SIU) probe into the procurement of personal protective equipment (PPE) has uncovered that most companies awarded contracts were not accredited or certified to handle or distribute the equipment.

Last year, at least R2 billion went to such companies, but the figure is expected to double if not triple after the completion of the SIU probe.

PPE contracts have drawn the ire of South Africans as politically connected people have been exposed to have made a killing from the Covid-19 pandemic.

In the latest scandal, Health Minister Zweli Mkhize has been put on special leave pending an SIU investigation into the R150 million contract awarded to Digital Vibes, a company run by his associates Tahera Mather and Naadhira Mitha.

The owner of the company, Radha Hariram, has in the meantime deposed an affidavit, alleging that Mather and Mitha embezzled funds from the company.

Hariram stated that when she contacted the pair about the scandal, they appointed the services of an attorney and, after numerous consultations, they paid back R9m.

Another high-profile government official to be embroiled in the PPE procurement saga was former Gauteng health MEC Bandile Masuku.

He was dismissed from the provincial executive after the SIU found him to have failed to exercise oversight on the awarding of R125m in PPE contracts to Royal Bhaca Projects.

The company was owned by the late Thandisizwe Diko, who was married to Khusela Diko, who was suspended as President Cyril Ramaphosa’s spokesperson over the saga.

Masuku and Diko were also suspended from the ANC’s Gauteng provincial executive committee, a decision that has since been overturned by the party’s National Disciplinary Committee (NDC).

Another high-ranking official to be caught up in the PPE storm was ANC chief whip Pemmy Majodina. King Mzimshe Trading, a company owned by Majodina’s son, Mkhonto weSizwe Majodina, reportedly scored a R52 000 contract to supply thermometers to ANC constituency offices.

The Gauteng Education Department is also embroiled in a PPE scandal where it spent R431m on sanitising schools.

As the intensity of the investigations reaches its final stretch, sources close to the matter have told the Sunday Independent that the SIU was shocked at the level of irregular contracts awarded to undeserving companies.

“The amount of corruption and disregard for the processes we witnessed is genuinely unbelievable. Officials disregarded the norms and standards and dished out the contracts as though it was giving candy to school children,” said a source within the SIU speaking on condition of anonymity.

The Medicines and Related Substances Act prohibits companies or individuals from selling medical devices, including PPE, without a licence. Companies need to register with the SA Health Products Authority (Sahpra).

The organisation is tasked with regulating, monitoring, evaluating, investigating, inspecting and registering all health products.

This includes clinical trials, complementary medicines, medical devices and in-vitro diagnostics.

According to sources within Saphra, the suppliers of respiratory masks and infrared thermometers need a licence from the organisation. Saphra spokesperson Yuven Gounden said companies supplying PPE to health-care facilities need to be licensed.

Head of SIU, advocate Andy Mothibi, during an interview with the newspaper this week, confirmed that they had unearthed a long list of unlicensed companies being awarded contracts.

“Some companies were registered a few days before Covid-19 hit, and they received contracts. Some of them were car washes. That in itself tells us that those responsible for procurement deliberately overlooked the legal requirements and recklessly awarded these contracts to these non-qualifying companies,” Mothibi said.

He added that by doing so, they committed irregularities.

“In some instances, we found evidence of collusion. Departmental officials colluded with companies that don’t qualify to get contracts. Some of these companies would be required to register with Saphra, and in many instances, you will find they are not registered, and you ask why,” he said.

The SIU is expected to release its findings into the procurement of PPE by the end of August.

The unit started investigating the matter in June when it emerged that supply chain management processes relating to procurement were flouted and corrupt dealings picked up.

One of the most glaring pieces of evidence picked up by the unit is government officials awarding contracts to individuals known to them or their families despite their companies never having dealt with medical equipment.

“You can draw the only inference that these companies were just put through and given the contracts irregularly. It was shocking that you could find a non-qualifying company like a car wash being given the work of supplying PPE,” Mothibi said.

He lambasted government officials’ conduct and said their disregard for rules and regulations put the lives of healthcare practitioners and patients at risk by allowing unqualified individuals to handle such sensitive equipment.

“In many instances, these PPEs have a standard you must comply with as a service provider. Some of them have delivery specifications that won’t be suitable for what they are meant for if you don’t deliver them in a particular manner. If you give it to someone without experience, it defeats the purpose and puts those they are meant for at risk of losing their lives due to the pandemic,” he said.

THE HEAD of the Special Investigating Unit (SIU), advocate Andy Mothibi, says the unit is not President Cyril Ramaphosa's attack dog or an organisation used to eliminate opponents.

“That is false, inaccurate and unfounded. There are processes to be followed when we come up with a draft proclamation. We don't get an instruction from the president on how to receive allegations and assess the allegations. They are reported independently by members of the public, whistle-blowers and state institutions themselves. They approach the SIU of their own accord,” he said.

In an exclusive interview with the Sunday Independent, Mothibi detailed how the organisation operates and how cases are investigated.

Mothibi said the organisation sends a draft proclamation for Ramaphosa to sign.

The SIU has been in the limelight since the Covid-19 outbreak in March 2020 and allegations of corruption concerning the procurement of personal protective equipment (PPE) that followed. Since then, high ranking politicians and business people have been investigated and, in some cases, forced to leave their positions.

Former Gauteng Health MEC Dr Bandile Masuku was the first high profile person to be a victim of the SIU's sting.

He was found guilty of failing to exercise oversight when his department awarded a tender to a company owned by the husband of Ramaphosa’s spokesperson, Khusela Diko.

The Dikos are family friends with the Masukus.

In recent weeks, Health Minister Dr Zweli Mkhize has found himself at the centre of a scandal involving a R150 million tender awarded to Digital Vibes, a communications company with links to two close associates. As a result, this week Mkhize was placed on special leave by Ramaphosa while the SIU continues with its investigations.

He has maintained that he has not benefited from the contract, but records have shown that the company bought his son, Dedani, a car and paid him a large sum of money and paid for refurbishments at one of the houses owned by Mkhize’s trust.

Mkhize’s associates, Tahera Mather and Naadhira Mitha, are also under investigation after the Digital Vibes owner opened a case of fraud and embezzlement against them.

As a result of the two cases, some sectors of society and members of the governing party have accused the SIU of fighting factional battles and being used by Ramaphosa to eliminate potential threats to his re-election as party president at the next elective conference.

However, Mothibi has maintained that was not the case and that the organisation had governance processes that govern how it operates. After allegations had been made and reported to them, he said they were tested independently, and even he was not aware of them at that stage.

“There is an independent governance process that deals with the allegations. They are reported on our platform, and they are taken from there and reviewed by a Case Assessment Committee.

“The committee has its terms of references, a framework within which it works. They look at the allegations and assess them independently before testing them against the mandate of the SIU, as provided by the Act,” he said.

“Once satisfied that allegations require an investigation, they draft a proclamation themselves. It’s then presented to me, and I go through it to ensure it complies with the SIU Act. Then, I sign it off and take it to the Ministry of Justice. It looks at it, and once satisfied, they forward it to the Presidency.”

Once members of the Presidency’s team are satisfied, they would place it before the president for him to sign. Once it’s signed, it gets gazetted.

“The Presidency and Ministry would not be aware of the allegations when they are presented to the SIU. That, in itself, should demonstrate that at no stage the president or minister gets involved in processing allegations or investigations of the accusations. Therefore, those allegations are baseless and unfounded,” he said.

Mothibi added that they had been hard at work turning around the organisation's image and wanted public members and state organs to know and understand how the unit worked and the procedures they followed when it came to investigations.

“We want the SIU to be the preferred and trusted forensic investigation and litigation agency for the government. We are on track to achieving that vision. State organisations are now referring allegations to the SIU. They do that independently, and at that time, the Presidency would not be aware of the allegations we receive. Neither would the Ministry of Justice know that we have received these allegations,” he said.

The SIU expects to complete investigations into the procurement of PPEs by the end of August. Among the most anticipated reports, apart from the Mkhize investigation, is the sanitisation of schools in Gauteng.

This week, the unit obtained a court order to freeze R22.4m held in companies’ bank accounts involved in the sanitisation programme. More than 200 companies are being investigated concerning the contracts awarded by MEC Panyaza Lesufi’s office. Mothibi has called on the public to understand that each case has to be looked at on its merits and should not expect that what happened in the Department of Health investigation would happen in the Department of Education matter.

“Ultimately, it’s each case on its merits. It can be the same approach, but evidence differs from case to case. So it is understandable why the public would expect us to do the same as we did with the former MEC in Gauteng. We will do a similar investigation, but I need to emphasise that our findings will be based on the evidence,” he said.

Mothibi added that the report could be finalised in the next few weeks, long before the outlined date of the full PPE investigations report.

“The team is flat out investigating. We will ensure we finalise that part as speedily as investigations will allow. We are looking at concluding investigations by August, but this could be concluded before then. I receive feedback regularly on the matter,” he said.

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2021-06-13T07:00:00.0000000Z

2021-06-13T07:00:00.0000000Z

https://thesundayindependent.pressreader.com/article/281483574327178

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