The Special Investigating Unit (SIU) welcomes the two judgments handed down by the Special Tribunal, which reviewed and set aside unlawful contracts awarded by the Mpumalanga Department of Health during the COVID-19 pandemic. The contracts, valued at R1,080,000.00 for 60,000 surgical masks and R13,297,500.00 for 150,000 protective medical jumpsuits, were declared constitutionally invalid, unlawful, and void.

The SIU investigations revealed that Tark Group (Pty) Ltd, formerly Tuwo Rhodesia, benefited unlawfully from contracts worth over R14 million. Tark Group is co-owned by Katleho O’Hara Mokonyane and Bonelela Mgudlwa. The Tribunal also held the co-owners personally liable for unlawful gains. The Tribunal ordered the disgorgement of profits and declared the contracts void.

The SIU’s investigations revealed systemic violations of procurement laws, including bypassing bid committees, deviations from transversal contracts, and the appointment of a supplier lacking accreditation and the requisite SAHPRA licence.

The Special Tribunal also made a judgment against the Mpumalanga Department of Health Officials. The Tribunal confirmed that the Department issued premature promissory letters of award, bypassed mandatory bid evaluation and adjudication committees, and accepted non-compliant bids. While the Department chose to abide by the application, its conduct was central to the irregularities.

This judgment is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the COVID-19 national state of disaster. It sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the state, and the SIU will use its litigation powers to the fullest to ensure such funds are returned.

The SIU remains committed to protecting public funds, restoring integrity in procurement, and ensuring that those who unlawfully benefit from state contracts are brought to justice.

President Cyril Ramaphosa directed the SIU, under Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, and malpractice, as well as payments made by State institutions, concerning PPE procurement and the conduct of State employees.

The SIU is also empowered to institute civil action in the High Court or a Special Tribunal to address any wrongdoing uncovered during investigations related to corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action.

Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
E-mail: siumedia@siu.org.za