Cape Town — The Special Tribunal has ordered 16 service providers to pay back profits from a Personal Protective Equipment (PPE) contract awarded to the Kwa Zulu Natal (KZN) Department of Social Development (DSD).
In a statement, the Special Investigating Unit (SIU) revealed that nine unopposed orders followed allegations of irregularities and inflated prices when awarding the contracts. The Special Tribunal declared the contracts as unlawful and invalid.
KZN provincial Treasury conducted a forensic investigation into allegations related to DSD’s procurement of the PPE and the investigation was prompted by various public reports alleging the procurement contracts were inflated and irregular.
The Treasury investigation found the PPE was procured from 16 service providers totalling 18 contracts for a cumulative total value of R21 242 955.55. The report recommended disciplinary action against the officials, as well as the registration of a criminal case.
#SIUWorkingForYou| Special Tribunal orders 16 service providers to pay back the money from KZN DSD PPE R21 Million contracts pic.twitter.com/29IApAHGMS
— Special Investigating Unit (SIU) (@RSASIU) February 25, 2025
“The ruling comes after the Special Investigating Unit (SIU) was authorised through Proclamation No. R. 23 of 2020, to investigate the affairs of all State institutions regarding procurement or contracting for goods, works, and services during or in respect of the National State of Disaster by or on behalf of State institutions,” SIU spokesperson, Kaizer Kganyago said.
“The SIU 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,” Kganyago added.
The SIU’s investigation also looked to determine whether:
- Procurement regulations were followed.
- There was any collusion between officials and service providers.
- Any party committed fraud
- The Department received value for money
- Personal protective equipment (PPE) was purchased at inflated prices.
“The SIU 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,” Kganyado concluded.
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Compiled by Matthew Petersen
