SIU probing R13bn worth of PPE tenders, govt officials implicated
The Special Investigating Unit (SIU) says it has uncovered millions of rands worth of irregular expenditure by state organs during the Covid-19 pandemic.
This comes after several whistle-blowers flagged 189 procurement irregularities in contracts relating to personal protective equipment (PPE).
The allegations reported to the SIU included the irregular procurement of PPE, hospital and quarantine sites, food parcels, ventilators, disinfecting equipment and motorized wheelchairs.
On Friday, head of the SIU Andy Mothibi released a 31-page report detailing some of the SIU’s finding.
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“According to data received from the National Treasury, a total of R30.7 billion was spent by State institutions between April and November 2020 of which R13 334 240 581 is subject to the SIU investigation,” Mothibi said.
“As at the date of the release of the progress reports and the outcomes, a total of 2 556 PPE contracts were awarded to the value of over R13,3 billion are under the SIU investigation.”
More than 1500 of these contracts are still under investigation and some 800 others are yet to be investigated.
The forensic investigation agency found some government officials guilty of dereliction of duty.
“Various officials merely rubber-stamped decision taken by; and/or accepted and gave effect to ‘unlawful’ instructions from officials more senior than them, which resulted in a complete break-down of the checks and balances,” Mothibi added.
According to Mothibi, there was also a “misrepresentation from suppliers by not disclosing their close friendships with officials who were involved in awarding PPE contracts.”
In addition, the SIU found that political pressure also played a role in the awarding of tenders to particular companies.
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Mothibi said he remains steadfast in ensuring action is taken against those implicated.
“Twenty-five referrals have been made to various State institutions for the institution of disciplinary action for misconduct and contravening of the supply chain management policies and sections of the Public Finance Management Act and the Municipal Financial Act.
“The SIU has made 38 referrals to the National Prosecuting Authority in respect of evidence of criminality for prosecution. The referrals include allegations of fraud, corruption and the financial misconduct relating to the Public Finance Management Act and the Municipal Financial Act,” Mothibi added.
So far, the SIUhas recovered some R127 million from irregular contracts and still expects to recover another R160 million.
Mothibi vowed to continue to clampdown on fruitless expenditure.
