SIU to ask NPA why those in dodgy PPE tender deals have not been prosecuted

Head of SIU, advocate Andy Mothibi.

Head of SIU, advocate Andy Mothibi.

Published Feb 6, 2021

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Johannesburg - The Special Investigating Unit has expressed confidence that its probe into the public funds misappropriated in the government’s R30.7 billion procurement of Covid-19 personal protective equipment (PPE) will lead to successful prosecutions.

SIU head Andy Mothibi assured the nation that the failure to prosecute government officials implicated in their investigations into PPE corruption will not be allowed.

”That has changed. We are engaging the NPA (National Prosecuting Authority) on why certain prosecutions have not taken place,” he said.

According to Mothibi, although there was a history of matters not being prosecuted, the SIU was now seeing action in pursuing cases emanating from the unit’s investigations.

Mothibi publicly released the SIU’s report of its investigation into widespread corruption in the R30.7bn procurement.

The report, which has already been presented to President Cyril Ramaphosa, reveals that out of the total of R30.7bn that was spent by government institutions between April and November last year, the SIU has investigated contracts worth over R13.3bn.

By the end of November, the 2 556 PPE contracts worth R13.3bn that are subject to investigation were awarded to 1 774 service providers.

The SIU has finalised investigations into 164 PPE contracts valued at over R3.5bn, while another 1 541 deals worth R6.8bn are currently under scrutiny.

Investigations into another 851 contracts are yet to commence, and the SIU is receiving more allegations.

Mothibi said the SIU referred 38 matters emanating from its findings to the NPA for criminal prosecution and these include allegations of fraud, corruption and the financial misconduct relating to the Public Finance Management Act (PFMA) and the Municipal Finance Management Act.

The referrals to the NPA comprise PPE corruption at the Gauteng department of health, in which Royal Bhaca, a company owned by Thandisizwe Diko, the husband of Ramaphosa’s spokesperson Khusela Diko, is heavily implicated.

Mothibi said the SIU referred a senior manager for possible prosecution for financial misconduct in terms of the PFMA.

Police are investigating the matter after a criminal case was opened in Johannesburg in December.

Another case of fraud against one of the dozens of entities that benefited from PPE contracts in the department and its director was also opened with the police in Johannesburg in December.

Mothibi also revealed that the SIU had been assured by the Presidency’s acting director-general Lusanda Mxenge that Ramaphosa’s office was taking the necessary steps against Diko.

“We have been assured that the relevant action will be taken based on the SIU’s referral,” he explained.

Mothibi described the scale of corruption uncovered by the SIU as unprecedented.

Zodwa Xesibe, SIU head in the Eastern Cape, said the unit was investigating allegations of impropriety in over 600 contracts worth R2.9bn in the province.

She said these were matters that were received by the SIU in the Eastern Cape as of November 26, 2020, and that the number has increased because new matters have been referred to the unit.

The SIU is also probing contracts worth R1.1bn relating to the provision of water to schools by the Department of Basic Education.

Another investigation into the looting of the Unemployment Insurance Fund’s temporary employment relief scheme (Ters) is awaiting a proclamation to be issued.

The SIU has found that a total of 6 140 government officials were identified after claiming over R41 million from Ters using 3 959 bank accounts.

Political Bureau

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