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SIU welcomes review application outcome relating to R24 Million PPE Tender awarded to events management company by Gauteng Department Of Health

The R24 million Personal Protective Equipment (PPE) tender awarded by Gauteng Department of Health (Gauteng Health) to an events management company for the supply and delivery of 100 000 boxes of surgical gloves, in response to Covid-19 pandemic, has been reviewed and set aside.

By agreement between the Special Investigating Unit (SIU) and Mlangeni Brothers Events CC (Mlangeni Brothers), the Special Tribunal declared the contract invalid, unconstitutional and unlawful in a judgment that was delivered electronically by Judge Lebogang Modiba on 7 February 2022.

Mlangeni Brothers was ordered to furnish the Special  Tribunal with audited financial statement and debatement account by 21 February 2022, setting out all the expenses it incurred in order to fulfill its obligations in line with the PPE tender that was irregularly awarded by Gauteng Health. The SIU seeks to recover more than R12 million from Mlangeni Brothers it allegedly overcharged Gauteng Health.

The SIU approached the Special Tribunal for review of the tender following an investigation in the awarding of PPE tenders in Gauteng Province. The investigation was triggered by the Gauteng provincial government audit, which informed the Office of the Premier of alleged irregular and unlawful conduct by Gauteng Health officials during the procurement of PPE.

The SIU investigation revealed that proper procurement processes were not followed in the awarding PPE tenders by the Chief Financial Officer (CFO) and the Chief Director: Supply Chain and Asset Management (Chief Director). Gauteng Health issued a commitment letter on 20 April 2020 to Mlangeni Brothers for the provision of 100 000 boxes of powdered and non-powdered gloves amounting to R24 million. The commitment letter has been reviewed and set aside by the Special Tribunal.

The SIU welcomes the outcome of the review application. This is a continuation of implementation of the SIU investigation outcomes and consequence management to recover monies lost by the State.

Meanwhile, the CFO resigned in May 2020 when the allegations of impropriety surfaced. The SIU was granted a preservation order by the Special Tribunal to freeze pension benefits of the former CFO pending the finalisation of civil action against the former CFO for involvement in the irregular awarding of PPE tenders.

Further, the SIU referred evidence to Gauteng Health in support of the institution of disciplinary action against the Chief Director for alleged contraventions of legislations in awarding PPE tenders and failure to adhere to the Code of Conduct of the Public Service. The SIU was informed by Gauteng Health that the Chief Director was found guilty on the disciplinary charges and a sanction of dismissal was made.

Issued by Special Investigating Unit