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The Special Investigating Unit (SIU) welcomes the judgment of the High Court of South Africa, Gauteng Division, Pretoria, which has dismissed the application by Mr Thabiso Hamilton Ndlovu and his associated companies to reinstate their lapsed appeal against the Special Tribunal’s order of 7 June 2022.

The dismissal confirms that Ndlovu and his entities have no prospects of success in challenging the Special Tribunal’s findings, which set aside unlawful PPE contracts awarded by the National Health Laboratory Service (NHLS) and directed repayment of R158,850,921.13.

The appeal had lapsed due to the failure to act within the prescribed timelines, and the appellants’ explanation for the delays was found to be superficial, contradictory, and dishonest. Evidence presented in the case revealed that Mr Ndlovu used multiple fronting companies to exploit emergency procurement processes fraudulently during the COVID-19 pandemic.

The SIU’s investigation found that almost 90% of the NHLS funds were diverted to Mr Ndlovu and his family for luxury assets, including cars, houses, and investments, rather than being used for the intended PPE supply. Ultimately, the Court confirmed that Ndlovu and company had no prospects of success in overturning the Special Tribunal’s ruling.

Between March and April 2021, the National Health Laboratory Service (NHLS) awarded 19 contracts for personal protective equipment (PPE) worth R172 million to companies controlled by Mr Ndlovu. However, only R13.8 million of the allocated funds was actually used for the procurement of PPEs, with the remainder being diverted for Mr Ndlovu's personal enrichment.

In 2022, the Special Tribunal declared the contracts unlawful. They were set aside, and the tribunal ordered the repayment of R158.8 million, highlighting the misconduct involved in the awarding of these contracts. Following this ruling, Mr Ndlovu and his companies attempted to file an appeal; however, they failed to action it within the required timeframe. Their subsequent application for condonation and reinstatement of the appeal was ultimately dismissed.

This ruling follows a series of civil litigation initiated by the SIU and the NHLS to recover assets acquired from the unlawful procurement of PPE during the COVID-19 pandemic.

The SIU is empowered by Proclamation R.23 of 2020, authorised by President Cyril Ramaphosa, to investigate allegations of corruption, malpractice, maladministration, and irregularities in procuring goods and services by State institutions in response to Covid-19.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU refers any evidence of criminal conduct uncovered during its investigation to the NPA for further action. The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.

Issued by Special Investigating Unit