R1.39bn on irregular PPE spend could be recovered
The estimated cost of the investigations by the SIU into irregular and corrupt procurement of PPE by government departments is R351m, while the potential amount recoverable as at end-June was R1.39bn, unit head, Advocate Andy Mothibi, said in Parliament yesterday.
If the R1.39bn involved in cases before the Special Tribunal set up to fast-track the adjudication of corruption cases at the end of May were recovered, the R351m would have been money well spent, Mothibi indicated in a briefing to Parliament’s Scopa.
A Business Day report says a further R100m in potential losses had been prevented by advising departments not to make payments on the basis of irregular contracts.
Scopa chair Mkhuleko Hlengwa pointed out that the R351m could have been much better used and described the PPE corruption in the midst of a pandemic as a crime against humanity.
Mothibi noted that at the end of June, there were 4 302 PPE contracts under investigation involving 2 421 service providers.
Investigations into 30% of the contracts had been finalised, 62% were ongoing and 7.9% had yet to be started. New cases were continually being added. The total value of irregular contracts under investigation by the SIU is R14.8bn.
Mothibi told MPs that most of the investigations into allegations of irregular PPE contracts, which commenced in 2020, were due to be finalised by end-August 2021 though allegations continued to be submitted to the SIU and some investigations would continue after this date.
A final report on the bulk of finalised PPE investigations will be submitted to the Presidency by end-November.
About 62% of allegations of PPE irregularities could not be substantiated.
The SIU has found that there were indeed irregularities in the procurement processes of PPE in the Cederberg and Matzikama municipalities along the West Coast, says a Cape Times report.
Briefing Scopa yesterday, the SIU said it received several allegations relating to the Cederberg Municipality, regarding funds totalling R529 838.
In the Matzikama Municipality, there were allegations of irregular procurement totalling R1.1m.
Motion proceedings of that matter would be heard when the opposing affidavits had been obtained, the SIU said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
