The Special Investigating Unit (SIU) has secured a court order for the recovery of R2.4 million following a judgment declaring a multimillion rand Mpumalanga Health Department personal protective equipment (PPE) contract unlawful.
The order – granted by the Special Tribunal – directs Nozihle Construction and Projects CC to repay the money related to an April 2020 contract for the supply of 100 000 3-ply surgical masks valued at some R2.645 million.
“The tribunal found that the contract was unlawful and void because Nozihle Construction and Projects CC was not licensed as a distributor of medical devices with the South African Health Products Regulatory Authority, as mandatorily required by the Medicines and Related Substances Act, 1965.
“The order affirms the SIU’s argument that any transaction performed in contravention of statutory prohibition is void. The recoverable amount of R2 427 333.30 represents the difference between the price paid by the department and the average price for masks on National Treasury's transversal contracts,” the SIU said.
The company was also ordered to pay the costs of the corruption busting unit’s counsel.
“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.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” the SIU said. – SAnews.gov.za
