2021-08-27 - SIU Presentation R23 of 2020 01092021

PRESENTATION TO SCOPA
PROCLAMATION R23 OF 2020

STATE INSTITUTIONS INVESTIGATIONS
PRESENTED BY ADVOCATE ANDY MOTHIBI
1 SEPTEMBER 2021
Hotline: 0800 037 774 | Website: https://www.siu.org.za | E-mail: info@siu.org.za

SIU MANDATE
2
SIU LEGISLATIVE MANDATE
• To provide for the establishment of

special investigating units for the
purpose of investigating serious
Criminal malpractices or maladministration in
Procedure connection with the administration of
Act, 1995 (Act state institutions, state assets and
56 of 1995) public money as well as any
conduct which may seriously harm
Special the interests of the public and of
Investigating instituting and conducting civil
proceedings in any court of law or a
Prevention and Units and Special Tribunal in its own name or
Combating of Special on behalf of state institutions;
Corrupt Tribunals Act,
1996 (Act 74 of • to provide for the revenue and
Activities Act 12 expenditure of special investigating
of 2004 1996) units; to provide for the
establishment of special Tribunals
so as to adjudicate upon civil
matters emanating from
investigations by special
investigating units; and to provide
for matters incidental thereto.
3
SIU OUTCOMES
CONSEQUENCE MANAGEMENT
CIVIL LITIGATION DISCIPLINARY PROSECUTION REFERRAL TO

•Institute civil ACTION REFERRALS TO OTHER
proceedings where REFERRALS TO THE NPA REGULATORY
there are potential STATE AUTHORITIES
recoveries of assets.
•Apply for preservation
INSTITUTIONS SUCH AS:
orders at an early stage SARS
of investigation where
there is prima facie FIC
evidence.
SYSTEMIC RECOMMENDATIONS
4
BRIEFING ON 5TH PROGRESS REPORT SUBMITTED
TO THE PRESIDENCY ON 30 JUNE 2021
5
COVID-19 EXPENDITURE STATISTICS
6
COVID-19 RELATED SPENDING ACTUAL VS BUDGET:
NATIONAL DEPARTMENTS AND PROVINCES
APRIL 2020 – MARCH 2021
7
Covid-19 related spending: Local Government per Province
15 March 2020 - 28 May 2021
8
VALUE OF COVID-19 SPEND VS VALUE UNDER
INVESTIGATION BY THE SIU AND VALUE REFERRED TO
THE SPECIAL TRIBUNAL
9
LIMITATIONS AS AT PREVIOUS REQUEST TO BRIEF SCOPA
ON COVID-19 REPORTS DATED 2/06/2021
(NO NEW LIMITATIONS COMPARED TO THE PREVIOUS
REPORT)
10
LIMITATIONS STEPS TAKEN
Very limited original documentation was created (e.g. a number of aspects 5(2)(b) and (c) hearings were conducted.
were done telephonically) or kept by the State institutions relating to the Conducted search seizures in terms of section 6 of the SIU Act.
appointment of service providers for the procurement of PPE. In many Physical visits to the State institutions and/ or service providers were
instances the SIU received only partial records and had to go back for conducted to obtain documentation.
more comprehensive records. Physical searches for documents were Requested electronic documentation.
conducted to try and find the documents. The SIU managed to obtain Extensive interviews were conducted to understand the processes
some electronic documents and also obtain some documents from the followed and recreate the scenario leading to the acquisitions.
service providers in order to re-create paper trails. Requested documents from suppliers.
Imaging of computers/laptops.
Destruction of evidence (documentation, hardware devices such as Computers were seized and imaged.
computers and mobile phones were either lost or deleted). Conducted search seizures in terms of section 6 of the SIU Act.
Some of the officials at the State institutions worked on a rotational basis Telephonic consultations with witnesses. Through the interventions of the
so there were delays in collecting the required documents. Some State Administrators in the Provinces, most of the documents were obtained
institutions also had to close their offices because of Covid-19 infections. from the state institution. Conducted section 5(2)(c), hearings in terms of
the SIU Act to obtain evidence. Appointments with affected officials were
re-scheduled according to their availability. Arrange interviews and
meetings through MS Teams, use of other electronic means like emails.
Where possible members visited employees at home.
Unavailability of officials who had to sign off affidavits that had been We continued making referrals based on the IO statements and supporting
provided. After the commencement of remedial action by the SIU and as a evidence.
result of negative media reports, a number of witnesses, who were The concerns were resolved through meetings with the affected
interviewed, are now refusing to sign their witness statements. employees and senior officials of the Department.
11
Unavailability of officials who had to quarantine or were working from Interviews were conducted at neutral venues and most of the witnesses
home and did not want to have face-to-face interviews. ICT problems came to the SIU offices for interviews.
made virtual interviews very difficult and in certain instances, such Telephonic interviews and virtual meetings were conducted to overcome
interviews had to be rescheduled. this challenge
Reschedule meetings with officials at their preference and provide
alternate dates.
Unavailability of witnesses because of Covid-19, specifically staff that had Interviews were conducted at neutral venues and most of the witnesses
to be interviewed at hospitals. Witnesses and SIU staff also had to came to the SIU offices for interviews.
quarantine. Telephonic interviews and virtual meetings were conducted to overcome
this challenge
Reschedule meetings with officials at their preference and provide
alternate dates.
Some urgent meetings and interviews were held over Ms Teams to avoid
delays.
Where possible members visited witnesses at home.
Witnesses fear victimisation and/or feel unsafe and are hesitant to be Witnesses were allowed to bring their legal representatives and some
interviewed, provide statements and/or evidence. were sent interview questions which they had to respond to and send it
back to the investigating team.
Protected their identity and requested them to report matter to the SIU
and the SAPS if the feel unsafe.
Engagements held with the affected witnesses and were advised on their
protection in terms of the Protected Disclosure Act and the Witness
Protection Act.
12
Unavailability of staff in the banking industry. Most banks operated with Constant follow up were done with bank manager and/or delegated
skeleton staff because of Covid-19 which delayed the release of bank officials. Some bank statements were received and some are still
records that had been requested. outstanding
Appointments with affected bank officials were re-scheduled according to
their availability.
Regularly communicate with banks/senior management to prioritise
requests.
The SIU is part of the fusion centre and FIC has been instrumental with
financial profiling of all relevant service providers.
Non-availability of officials to receive and acknowledge receipt of our Referrals were sent to the Administrators in the Provinces and/or
disciplinary referrals because no face-to-face meetings were allowed at delegated officials.
some of the State institutions. Slow action by State Institutions due to Accounting officers were contacted to make available alternate officials to
Covid-19 on the referrals made. receive the hand overs.
Arrange with Head of Department’s for delivery and receipt.
Arrangements were made for delivery of these at alternative locations to
avoid delays.
The geographical location of many of the State institutions concerned Planning and coordinating trips to collect documents and interview
(e.g. local municipalities etc.) and having to travel extensive distances. witnesses so that all work in a specific direction is covered in one trip.
Delivery was made to those institution irrespective of the distance that
had to be travelled.
Projects were pre-planned and travel was grouped into clusters to ensure
that one trip achieved several outcomes thus limiting travel.
Virtual meetings were also conducted to minimise travel.
Request assistance from other regions.
13
OBSERVATIONS AS AT PREVIOUS REQUEST TO BRIEF
SCOPA ON COVID-19 REPORTS DATED 2/06/2021
(NO NEW OBSERVATIONS COMPARED TO THE PREVIOUS

REPORT)
14
These observations remain the same as per the previous briefing to SCOPA dated 10/02/2021:
• It appears that persons in positions of authority within Provincial Government believed that the declaration of a ‘national state of
disaster’ meant that all procurement is automatically now conducted on an ‘emergency’ basis, and without compliance with any of the
normal prescripts regulating public sector procurement, but without realising that even ‘emergency’ procurement must still be conducted
in accordance with certain minimum prescripts to ensure (in as far as possible) that such processes remain fair, equitable, transparent,
competitive and cost-effective as prescribed by section 217(1) of the Constitution (e.g. to motivate to the Accounting Officer/Authority of
the State institution concerned why it is wholly or partially impractical to invite competitive bids, and have that Accounting
Officer/Authority record the reason for such impracticality and approve a SCM Deviation in terms of Regulation 16A6.4 of the Treasury
Regulations, which must be reported to the relevant Treasury and the AGSA, etc.
• Various officials of Provincial Government:
o merely rubber-stamped decision taken by; and/or
o accepted and gave effect to ‘unlawful’ instructions from,
officials more senior than them, which resulted in a complete break-down of the checks and balances protection normally afforded by
the principle of ‘segregation of duties’ (e.g. the first capture the transaction, the second approves the transaction and the third
authorises the transaction etc.). Consequently, officials working within support services processed Commitment Letters, Purchase
Orders, Invoices and payments without ensuring compliance with normal SCM prescripts and other control measures.
15
• Furthermore, it appears that certain influential people within Provincial Government do not trust procurement processes
undertaken by the National Government (e.g. the procurement processes undertaken by National Treasury to secure
Transversal contracts), and hold, in the SIU’s respectful considered view, the false, incorrect or unwarranted view that such
procurement processes and resulting contracts create monopolies in public sector procurement, which excludes fair
opportunity for local, provincial, black empowerment and/or SMMEs (i.e. Small, Medium and Micro Enterprises) suppliers or
service providers to compete fairly for such contracts. This perception seemingly resulted in the Provincial Government
intentionally:
a) avoiding the use of Transversal contracts, as inter alia prescribed by Practice Note 8 of 2019/2020; and
b) ignoring the prescripts of Practice Note 3 of 2020/2021, which required from all State institutions to centralize all their
procurement within the National Treasury Procurement Team (which comprised of the National Department of Health
and the Chief Procurement Officer in National Treasury), as assisted by Business South Africa on a non-profit basis,
which resulted in procurement irregularities and grave loss and prejudice to the Provincial Government and the fiscus.
• Bearing in mind that the national state of disaster was declared on 15 March 2020, where after PPE procurement
commenced in earnest certain service providers were found to have only been registered on the CIPC during February and
March 2020 (and thus would and could not have had demonstrable track records).
• Companies awarded contracts were not registered on the CSD.
16
• Certain service providers were already in the de-registration process when they quoted and were awarded contracts (their
tax status is being verified as this would have impacted on their registration on the CSD).
• The type of goods supplied were not consistent with the nature of the business registered on the CIPC and CSD, i.e. they
should not have been requested to quote for the supply of goods or the rendering of services not related to their core
business, as set out in their CIPC and CSD records.
• Product specifications were ignored and products that were not suitable for its intended purposes were purchased and in
several instances against the advice of experts who expressed opinions on the usefulness of the products.
• Certain companies were awarded BBBEE points as level 1 contributors when they in fact did not qualify.
• Many companies were awarded contracts for the supply of PPE, which included certain items that qualified as ‘medical
devices’, in circumstances where such companies did not have the necessary licenses from SAHPRA to import, sell or
distribute such medical devices. Furthermore, the prescripts relating to the packaging, transportation and storage of such
medical devices were not complied with in many instances.
• Political pressure played a role in the procurement of PPE.
• It appears that the names of the service providers were determined before any SCM process commenced.
• The delivery of substandard and/or PPE that does not comply with the technical specifications contained in the invitation to
submit quotations. Furthermore certain PPE were not packed according to predetermined standards.
17
• There was no attempt to negotiate with suppliers in bringing prices within the thresholds suggested by Treasury. This
resulted in overpayment for goods.
• Certain State institutions lacked basic control measures that will establish correct product delivery. In several instances we
found under delivery of items or the receipt of incorrect items.
• There appears to be no verification protocols on supplier registration details. This has resulted in several suppliers claiming
VAT when they were not registered with SARS as VAT vendors.
• Suppliers using front companies to obtain multiple contracts from a department.
• Cover quoting by officials and suppliers.
• Splitting of bids to meet the quotation and/or delegation threshold.
• Misrepresentation from suppliers by not disclosing their close friendships with officials who were involved in awarding PPE
contracts.
• PPE was packaged under a false/forged, cloned label.
• Witnesses provided false information to the SIU.
• Some staff in the State institutions appear to have taken responsibility for the irregularities relating to the PPE procurement
instead of Senior Management or Executive Authorities.
18
CONTRACTS UNDER INVESTIGATION
19
SUMMARY OF PROGRESS AT 30/06/2021
The number of PPE contracts awarded for Covid-19 related services under investigation by the SIU is currently
4 302. These contracts were awarded to 2 421 service providers. By number of contracts, 30% of these
contracts have been finalised, 62.1% are currently being assessed and 7.9% have yet to commence.
Summary of progress
Percentage of matters under
No of contracts awarded to Value of contracts awarded to
Contracts' investigation status No of service providers investigation by number of
service providers service providers
contracts
Finalised 988 1,290 R6,986,605,970 30%
Ongoing 1,127 2,673 R7,109,528,400 62.1%
Investigation to still commence 306 339 R746,675,671 7.9%
Total 2,421 4,302 R14,842,810,041 100%
20
FINALISED MATTERS UNDER
LIM
INVESTIGATION PER PROVINCE 14 SERVICE PROVIDERS
18 CONTRACTS
R46 M
94 SERVICE
PROVIDERS
88 CONTRACTS
MPU R1.203 BN
98 SERVICE
NWP PROVIDERS
208 SERVICE PROVIDERS
GAU
234
252 CONTRACTS CONTRACTS
R97 M R288 M
FSP KZN
46 SERVICE PROVIDERS 217 SERVICE
52 CONTRACTS PROVIDERS
R243 M 348 CONTRACTS
NCP R2.097 BN
8 SERVICE PROVIDERS
8 CONTRACTS
R11 M
ECP
NATIONAL DEPARTMENTS
83 CONTRACTS 165 CONTRACTS
R1.318 BN R1.498 BN
WCP
42 CONTRACTS
R186 M
21
ONGOING MATTERS UNDER
INVESTIGATION PER PROVINCE LIM
36 CONTRACTS
R407 M
456 SERVICE
PROVIDERS
1 813 CONTRACTS
MPU R5.051 BN
62 SERVICE
NWP GAU PROVIDERS
59 SERVICE PROVIDERS 66
112 CONTRACTS CONTRACTS
R57M R368 M
KZN
FSP 86 SERVICE
3 SERVICE PROVIDERS PROVIDERS
R1.3 M R126 M
NCP
138 CONTRACTS
R107 M
ECP NATIONAL DEPARTMENTS

79 SERVICE PROVIDERS 243 SERVICE PROVIDERS
R627 M
R320 M
WCP
8 SERVICE PROVIDERS
11 CONTRACTS
R45 M
22
CIVIL LITIGATION UPDATE ON NEW MATTERS
SINCE PREVIOUS REQUEST TO BRIEF SCOPA ON
COVID-19 REPORTS DATED 2/06/2021
23
Rand value and number of new matters instituted in the Special Tribunal
No Province Description Value of outcome Date instituted Progress to date
The SIU issued and interim application against Joshco,
City of Johannesburg Municipality, Rembu Construction
cc, SKS Business Solutions and Pro Power Group (Pty)
Ltd for an order interdicting Joshco from making any
1 GAU SIU V JOSCHO & 4 Others R 500 000 000 28/05/2021
further payments to the three contractors pending the
finalization of the review application. Interim application
set down for 29/06/2021. The SIU will apply for a Case
Management date on 7/09/2021.
The SIU applied to the Special Tribunal for restraint
order to attach proceeds in the bank accounts of the
respondent. The application is based on the evidence
obtained by the SIU. The evidence reveals that the
Gauteng DoE irregularly and unlawfully procured deep
cleaning and sanitation services from the respondents
2 GAU SIU v Chachulani GP 15/2021 R22 400 000 31/05/2021
and that the respondents unlawfully benefitted from the
awards of tenders by the Gauteng DoE. An interim order
was confirmed and the Case Management hearing date
issued by the ST was 27/08/2021. The case joined
under GP12/2021 and the matter is set down for trial
from 24 – 25/11/2021.
The SIU established that the NHLS unlawfully and

irregularly procured PPE from the respondent and based
SIU & NHLS v Ndlovu and 5
3 GAU R30 000 000 24/08/2021 on the evidence launched an application to preserve
Others (GP19/2021)
assets in the amount of R30m in lieu of civil action.
Application set down for 31/08/2021.
24
The Gauteng DoH irregularly concluded a contract with
Digital Vibes (Pty) Ltd for the procurement of a media
awareness campaign in respect of the National Health
Insurance (“NHI”) for R141 million in terms of which R25
million was paid thus far, which was irregularly extended
to include a Covid-19 awareness campaign in terms of
which R125 million was paid thus far. Between
04/06/2021 and 14/06/2021, at the request of the SIU,
the FIC implemented a directive to freeze a total of R22
R266 000 000
million held in 10 accounts. This attachment was only
SIU v Digital Vibes and 11 (including an interim
4 National 04/06/2021 valid for 10 working days. On 17/06/2021, the SIU
others (KN03/2021) order for
applied for and successfully obtained an Interim
R22 000 000)
Preservation Order or Interdict to freeze a total of
R22 million held in 10 accounts, pending the outcome of
a Review Application to be brought by the SIU before
29/07/2021 to review and set aside the appointment of
Digital Vibes in respect of both the NHI and Covid-19
media campaigns for a total value of R266 million.
Review application were filed on 29/07/2021 and parties
exchanged pleadings. The SIU will apply for Case
Management with the ST on 16/09/2021.
The KZN DSD unlawfully and irregularly procured
personal protective equipment form the service
providers. The SIU issued an application to set aside
PPE contracts pursuant to an unlawful procurement
SIU v Ngome Steam Pot (Pty)
5 KZN R1 740 000 1/07/2021 process and to claim consequential relief for the
Ltd (KN02/2021)
recovery of financial losses suffered by the KZN DSD
flowing from the PPE contract. Papers are being served
and awaiting dies to expire for the exchange of
pleadings on 08/09/2021.
SIU v Bhomelela General
Trading Enterprise (KN04/2021)
25
SIU v Velakabusha General
Trading (Pty) Ltd (KN05/2021)
SIU v Ntente Trading (Pty) Ltd
(KN06/2021)
SIU v Ibusaphi Trading
(KN07/2021)
SIU v Umunyeovou Trading
10 KZN R247 106 1/07/2021 process and to claim consequential relief for the
(Pty) Ltd (KN08/2021)
26
SIU v Info Tech Evolution (Pty)
Ltd (KN09/2021)
12 KZN SIU v King Trading (KN10/2021) R308 300 8/07/2021 process and to claim consequential relief for the
SIU v Umunyeovou Trading
(Pty) Ltd (KN11/2021)
SIU v Ntente Trading (Pty) Ltd
(KN12/2021)
27
SIU v Mpumelelo Dlaba (Pty) Ltd
(KN13/2021)
SIU v Inqikithi Trading
Enterprise CC (KN14/2021)
SIU v Siphiwenonkosi Trading
(Pty) Ltd (KN15/2021)
SIU v Ngezolusha Trading (Pty)
Ltd (KN16/2021)
28
SIU v Youth Development 12
(Pty) Ltd (KN17/2021)
SIU v Beyond Hospitality
Solutions (Pty) Ltd (KN18/2021)
SIU v Mabugana Group CC
(KN19/2021)
SIU v Henque 2200 CC t/a
Zama Trading (KN20/2021)
29
This matter relates to the NWP Department of Public
Works and Roads. An application was issued to interdict
the pension fund from making payment of the benefits to
23 NWP SIU v Mothupi (NW03/2021) R3 100 000 19/07/2021 the respondent. The application was heard on
16/08/2021 and judgment was reserved. The ST ordered
that the pension be restrained. The ST must issue
summons by 24/09/2021.
The SIU launched a review application to set the

contract aside between the National Department of
Environment, Fisheries and Forestry based on evidence
24 WCP SIU v Kanga (WC 02/2021) R494 500 23/08/2021 obtained which reveals that the procurement of 3-ply
surgical masks and hand sanitizers at a cost of
R494 500 by the Department from Kanga was irregular
and unlawful. Dies will expire on 14/09/2021.
Total R857 600 529
30
CIVIL LITIGATION UPDATE ON MATTERS AS PER
PREVIOUS REQUEST TO BRIEF SCOPA ON COVID-
19 REPORTS DATED 2/06/2021
31
Civil litigation cases instituted in the High Court
Province Description Value of outcome Date instituted Progress to date
The SIU opposed the application. The matter was set down
for hearing on 21/01/2021 before the full bench of the High
Court. On 21/01/2021, Sutherland ADJP, Raulinga J and
Dr BEW Masuku, the former MEC of
Siwendu J presided over the hearing of the application that
Gauteng Provincial Department of Health
was brought by the former MEC, and judgment was
(“Gauteng DoH”) (“MEC”) filed an urgent
reserved. On 12/04/2021 the court handed down judgment
application in the High Court of South Africa
GAU n/a 23/10/2020 and dismissed Dr Masuku’s application to review and set
(Gauteng Division, Pretoria) under Case No.
aside the SIU referrals with costs.
555372/2020 to review and set aside the
SIU referrals as being unlawful,
Impact: The court confirmed that SIU reports and or
unconstitutional and therefore invalid.
recommendations are subject to legality review.
Executive Authority can be held accountable for
dereliction of duties.
The matter involves bid manipulation and leaked bid
information, resulting in an unlawful procurement process.
The Municipality irregularly concluded a contract with Rural
Impact Training Centre to the value of R650 378 and the
On 27 November 2020 the SIU instituted
matter also involves the Municipal Manager. The SIU
proceedings against the Matzikama
WCP R650 378 27/11/2020 applied to court to have the contract set aside and recover
Municipality in the Western Cape High Court
losses suffered. The SIU respondent filed its opposing
under Case no WC 17797/20.
application and the SIU its replication on 13/08/2021. The
SIU applied for a pre-trial hearing on 20/08/2021 and will
await assignment thereof by the Registrar of the High Court
for a trial date.
The Municipality irregularly and unlawfully contracted with
Pelatona to construct toilets to the value of R24 million. It is
alleged that the service provider was appointed on the basis
of a sole provider under circumstances where this was not
Proceedings were instituted in the Port
justified. Pelatona issued summons against the Municipality
Elizabeth High Court under case number
for payment in the amount of R4.3 million. The SIU
ECP ECP 2807/2020 by HT Paletona Projects R24 000 000 30/10/2020
investigation revealed that the amount is not due and
against the Nelson Mandela Bay
owing. The SIU is seeking to join the legal proceedings
Metropolitan Municipality.
instituted in the High Court against the Municipality by
Pelatona. The parties exchanged pleadings and an
application was set down for hearing on 19/08/2021.
Judgement was reserved.
32
Rand value and number of matters instituted in the Special Tribunal
The cause of action is based on the irregular
procurement by the ECP DoH of motorcycles with a
“sidecar” to transport patients, which resulted in a
process that was not fair, competitive or cost-effective.
The matter was heard in the ST and the ECP DoH was
interdicted from making any payments to the supplier
and from accepting delivery of any goods from the
Department of Health: SIU v supplier, pending the finalisation of Review proceedings
1 ECP Fabkomp (Pty) (Ltd) and Others: R10 148 750 18/09/2020 to challenge the validity of the award and resulting
(EC04/2020) contract. The Review proceedings were instituted in the
ST and on 22/04/2021 the ST set aside the contract and
interdicted the Department from making any payments
in respect of the contract.
Impact: ECP DoH interdicted from making payment

to the service provider and the contract set aside as
a result of the irregular procurement process.
This matter relates to an investigation into the irregular

procurement of an awareness campaign that was
conducted in the ECP. Civil proceedings were instituted
against an entity called Phathilizwi Training in the ST to
review and set aside the award and the resulting
The OR Tambo Municipality
contract. The matter was not opposed and was set
2 ECP “Door-to-door” case: R4 899 000 26/10/2020
down on the unopposed roll in the ST. The matter was
(EC06/2020)
heard in the ST on 2/03/2021. On 20/04/2021 the ST set
aside the contract and interdicted the Municipality from
making any payments in respect of the contract. The
Special Tribunal rescinded the order and will direct
further trial procedures.
This matter relates to the procurement of PPE for the

ECP DoE. The SIU successfully applied to the ST to
have the bank accounts of the first four Respondents
Department of Education: The frozen and to interdict the ECP Doe from making any
3 ECP Alinani Trading-matter R2 785 276 30/10/2020 further payments to them. The SIU is seeking to recover
(EC05/2020) losses suffered by the Department. Summons was
issued and the matter was enrolled in the ST for case
management on 25/06/2021. The matter is set down for
trial on 20 – 27/09/2021.
33
This matter relates to the irregular procurement of PPE for the
FSP DoH. It is alleged that the SCM process was flawed and
SIU v MEC for Treasury in the that non-sterile isolation gowns were supplied, instead of sterile
4 FSP Free State Province and 31 R39 000 000 27/11/2020 isolation gowns. An Application to recover losses was launched
others (FS/01/2020) in the ST on 27/11/2020. The Case Management hearing was
scheduled for 3/05/2021. The matter has been set down for 25
and 26/08/2021. Judgement has been reserved.
In this matter a contract to deliver PPE was irregularly awarded
by the GAU DoH, while unit prices were also artificially inflated
by between 211% and 542%. Notwithstanding the fact that the
Gauteng DoH was aware that the SIU was investigating the
contract and the Gauteng DoH had stopped almost all payments
in respect of suppliers under investigation by the SIU, on
3/08/2020, the Gauteng DoH made payment of R38 758 155 to
the suppliers. This had immediate clearance and substantial
amounts were moved from the bank account of the supplier to
the bank accounts of two other entities, who in turn
transferred/paid the funds to at least 36 other entities. On or
about 06/08/2020, at the request of the SIU, the FIC
implemented a directive to freeze a total of R26 449 526 in the
bank accounts of 39 entities. This attachment was only valid for
10 working days.
The SIU v Ledla Structural
5 GAU Development (Pty) Ltd and 43 R139 000 000 06/08/2020 Civil proceedings were instituted in the ST under Case No.
Others: (GP07/2020) GP 07/2020 and it was enrolled for 20/08/2020. On 20/08/2020,
the ST granted, inter alia, the following interim orders:
 The 1st to 39th Respondents were prohibited from dealing

with the funds to the value of R26 449 526 that were frozen in
their bank accounts;
 The implementation of the contract between the GAU DoH

and the 1st Respondent was suspended and the 1st to 42nd
Respondents were interdicted from giving effect thereto;
 The 43rd and 44th Respondents (i.e. the GEPF and GPAA)
were interdicted from releasing the pension benefits due to
the 42nd Respondent (a former Chief Financial Officer
(“CFO”) of the Gauteng DoH), pending the outcome of a
damages claim to be instituted against the 42nd Respondent;
34
 The GAU DoH was interdicted from making any

further payments to the 1st Respondent.
The return date for the interim order was 06/10/2020. A
case management meeting was held by the ST on
09/09/2020. The case was opposed by almost all the
Respondents. On 06/10/2020, the ST postponed the
matter to 20 and 21/11/2020, and the interim order was
extended to 20/11/2020. Prior to the hearing, the SIU
withdrew the Application against:
 the 26th Respondent, after it agreed to refund the
R2 000 000 that it received from the 3rd Respondent
to the 3rd Respondent and for that amount to also be
attached as part of the funds frozen in the account of
the 3rd Respondent (i.e. the amount frozen in the
The SIU v Ledla Structural account of the 3rd Respondent increased from
Development (Pty) Ltd and 43 R9 670.37 to R2 009 670.37); and
Others: (GP07/2020) (continued)
 the 35th Respondent, because it had never received
any payments from Ledla, and the relevant bank had
erroneously provided the FIC and the SIU with
incorrect information.
The matter was heard on 20/11/2020 wherein judgement

was reserved. Judgement was then handed down on
10/12/2020.
On 10 December 2020 the matter was heard and the

ST:
a) Reviewed and set aside the R139 million contract
that was concluded between the GAU DoH and
Ledla;
35
b) Extended its interim order made on 20 August 2020 to
interdict the GEPF from paying out the pension benefits due
to a former CFO until the finalisation of the action proceedings
that the SIU instituted against that former CFO in which the
SIU seeks to hold the former CFO and one other liable for
losses and damages allegedly suffered by the Gauteng DoH;
c) Confirmed the interim orders that were granted against the
1st Respondent, the 2nd Respondent, the 13th Respondent
and the 14th Respondent, and the ST declared the funds held
in their bank accounts (i.e. a total amount of approximately
R16 661 065) forfeit to the State;
d) Discharged the interim orders that were granted against the
5th Respondent, the 12th Respondent, the 22nd Respondent,
the 28th Respondent, the 31st Respondent and the 37th
Respondent, and the funds held in their bank accounts (i.e. a
total amount of approximately R173 945) were released; and
e) Ordered the SIU to obtain an independent audit report in
respect of the remaining Respondents who may have sold
The SIU v Ledla Structural PPE directly or indirectly to Ledla to quantify the loss suffered
Development (Pty) Ltd and 43 by the GAU DoH in having paid more for PPE than the
Others: (GP07/2020) (continued) maximum prices prescribed by NT and to submit that report to
the ST no later than 22/01/2021, where after the ST will
consider making supplementary orders, and the interim order
of 20/08/2020 was extended to 26/01/2021, and later again
extended to 02/02/2021 and again to 04/02/2021.
On 04/02/2021, the ST discharged its interim order, in terms of
which certain funds were frozen in respect of 6 respondents.
The total value involved is R2 257 475. The ST, however
confirmed its interim order in respect of 20 other respondents.
The total value involved is R7 401 705. This brings the total
amount forfeited to R24 062 770. Leave to appeal was heard on
30/03/2021 and judgment was reserved.
The applications for leave of appeal by the Respondents were

dismissed with costs in favour of the SIU.
Impact: Contract to the value of R139 million is set aside and

R26 million is forfeited to the State (further amount waiting
outcome of appeal to High Court).
36
In the Ledla matter, the ST interdicted the 43rd and 44th
Respondents (i.e. the GEPF and GPAA) from releasing
the pension benefits due to Ms Lehloenya (i.e. the 42nd
Respondent, who is a former CFO of the GAU DoH),
pending the outcome of a damages claim to be instituted
against her. On 11/09/2020, the SIU issued Summons in
the ST under Case No. GP11/2020 against Ms
Lehloenya (1st Defendant), Professor Lukhele (a former
Head of Department for the GAU DoH) (Second
Defendant) and the MEC for GAU DoH (3rd Defendant –
who represents the GAU DoH as an interested party and
SIU v Kabelo Mantsu Lehloenya,
against whom no relief is sought) in which the SIU seeks
Professor Mkhululi Lukhele and
6 GAU R43 532 709 11/09/2020 to recover losses suffered by the GAU DoH in the total
MEC for Gauteng Health
amount of R43 532 709. Both Defendants are defending
(GP11/2020)
the civil case. The matter was initially set down for
hearing from 01/06/2021 to 18/06/2021, but the parties
could not get the case ripe for hearing in time. As such,
the matter is now set down for hearing on 16/08/2021 to
20/08/2021. The matter was postponed for an
interlocutory application (joinder) to be heard on
19/08/2021. The judgment in the aforesaid application
would determine whether the trial will proceed on
19/10/2021 to 29/10/2021 The judgment for the joinder
application was reserved but the ST has now confirmed
that the trial will proceed on 19/10/2021 to 29/10/2021.
The former CFO of GAU DoH, whose pension has been
frozen, is also involved in this matter. The GAU DoH
irregularly concluded a contract with Beadica for the
SIU v Beadica 423 CC procurement of PPE in the amount of R168 597 000.
7 GAU R168 597 000 23/04/2021
(GP08/2021) The Review Application was issued in the ST on
23/04/2021. The SIU applied for Case Management on
03/06/2021. The matter has been set down for trial on 9
and 10/09/2021.
The GAU DoH irregularly concluded a contract with
Zakheni Strategic Supplies (Pty) Ltd for the procurement
SIU v Zakheni Strategic of PPE in the total amount of R103 770 000. The
8 GAU R103 770 000 23/04/2021
Supplies CC (GP09/2021) Review Application was issued in the ST on 23/04/2021.
The SIU will apply for Case Management in the ST on
16/09/2021.
37
The GAU DoH irregularly concluded a contract with

Mlangeni Brothers Events CC for the procurement of
PPE in the total amount of R24 000 000. The Review
SIU v Mlangeni Brothers Events Application was issued in the ST on 15/03/2021. The
9 GAU R24 000 000 15/03/2021
CC (GP07/2021) SIU has applied for a date. The Registrar will advise of a
date by 15/06/2021. The SIU applied for Case
Management in the ST on 15/07/2021. The matter is
set down for trial/ hearing on 11 – 12/11/2021.
On 19/05/2021, the SIU issued papers to apply for the

freezing of the pension of Prof Lukhele (a former HoD
and Accounting Officer of the GAU DoH) who has since
resigned. The papers are being served and the SIU will
10 GAU SIU v Lukhele GP11/2021 R17 000 000 19/05/2021 place the matter on the roll if it remains unopposed by
10/06/2021. The respondents agreed to the order of the
SIU and accordingly the matter will be enrolled on the
unopposed roll after the ST recess, i.e 18/07/2021. The
SIU will apply for a hearing date on 03/09/2021.
The SIU applied to the ST for restraint order to attach

proceeds in the bank accounts of the respondent. The
application is based on the evidence obtained by the
SIU. The evidence reveals that the GAU DoE irregularly
R30 000 000
and unlawfully procured deep cleaning and sanitation
SIU v Fikile and 16 Others
11 GAU 14/05/2021 services from the respondents and that the respondents
GP13/202 R431 000 000 (review
unlawfully benefitted from the award of tenders by the
application)
GAU DoE. A Review application was issued to set
aside contract to the value of R431 million. An interim
order was confirmed and the Case Management
hearing date issued by the ST is 27/08/2021.
38
This matter relates to the procurement process of a service
provider/contractor for the erection of a fence along the SA
border with Zimbabwe, near Beitbridge. The SIU investigation
found evidence that the procurement process was irregular.
The contract has a value of R40 million. The SIU instituted civil
proceedings in the ST for an order to “freeze” the bank
account of the First and Second Respondents, alternatively for
the Respondents to provide bank guarantees of R21 819 878
(Magwa Construction) and R1 843 004 (Profteam CC). The
National Department of initial application was withdrawn by agreement between the
Public Works and parties. The Respondents gave an undertaking not to claim
Infrastructure: The SIU v from the Department any payments and the Departments
Caledon River Properties undertook not to make any further payments under the
12 National R40 800 000 18/11/2020 contract. A new application was launched in the ST on
(Pty) (Ltd) and Others
Beitbridge Border matter: 18/11/2020. In the application the SIU seeks to set aside the
(GP12/20 and contract. The respondents raised points in law, challenging the
LP01/2020) jurisdiction of the ST to grant the relief sought by the SIU. The
hearing was held on 26/01/2021 and the judgement was
reserved. Judgment will be delivered on 26/02/2021. The
matter is scheduled for case management and the parties met
on 03/05/2021. Case management was set down for
25/06/2021. The matter is set down for trial on 04 –
08/10/2021.
Impact: The ST ruled that it has the same competency as
a court and has the jurisdiction to hear and make orders
in terms of Section 217 of the Constitution.
This is a matter from the Department of Land Reform and
Rural Development. A PPE-contract was awarded to an entity
called Black Dot. It is alleged that bid rigging took place and
there appears to be no evidence of service delivery. The SIU
brought an Application to freeze the pension of an official, Mr
SIU v Hlatshwayo (Black Hlatshwayo, who was involved in the SCM process. The
13 National R12 000 000 14/12/2020
Dot) (GP 20/2020) Application was granted as an interim order and civil
proceedings were to be instituted before 01/03/2021. The
matter was set down for 24/05/2021. A Final order was
granted interdicting the pension fund. The SIU amended the
summons and applied for Case Management on 22/07/2021.
The matter is set down for trial on 22 – 26/11/2021.
39
This matter relates to the irregular procurement of blankets for the KZN
Department of Social Development (KZN DSD). The investigation
revealed that in fact less blankets were distributed than the KZN DSD
had in its stores prior to embarking on the procurement process.
Civil proceedings have been instituted against the suppliers in the ST to
review and set aside the award and the resulting contracts to the value
Rosette Investments
14 KZN R4 899 000 25/10/2020 of R18.5 million, and to recover losses suffered by the KZN DSD.
(KN01/2020)
Rosette Investment (KN01/2020) agreed to refund the KZN DSD the
profits in the amount of R864 000. The agreement is subject to the ST
making the settlement agreements an order of the ST. The aforesaid
parties further agreed that the contract be set aside. On 09/04/2021 the
ST set aside the contract in KN01/2020 and ordered the service
provider to pay the KZN DSD R864 000.
DSD. The investigation revealed that in fact less blankets were
distributed than the KZN DSD had in its stores prior to embarking on
the procurement process.
15 KZN Gibela (KN02/2020) R6 708 000 25/10/2020
of R18.5 million, and to recover losses suffered by the KZN DSD.
KN02/2020 has been set down on the unopposed role for Default
Judgment. The judge will allocate dates. The ST heard the matters on
26/04/2021. In Gibela the parties must file a statement of account. The
matter was re-rolled on 30/06/2021. The matter is being opposed and
the SIU will apply for a Case Management date on 03/09/2021.
40
LNA Communications
(KN03/2020)
KN03/2020 has been set down on the unopposed role for Default
Judgment. The judge will allocate dates. The ST heard the matter on
26/04/2021. It was ordered that LNA papers must be reserved and set
down. The matter was re-rolled on 30/06/2021. The matter is being
opposed and the SIU will apply for a Case Management date on
03/09/2021.
Zain Brothers
(KN04/2020)
Zain Brothers (KN04/2020) agreed to refund the KZN DSD the amount
R718 000. The agreement is subject to the ST making the settlement
agreements an order of the Tribunal. The aforesaid parties further
agreed that the contract be set aside. On 29/01/2021 the ST set aside
the contract in KN04/2020 and ordered the service provider to pay the
KZN DSD R718 550.
41
The SIU brought an Application to freeze the pension of Mr Selemale,

SIU v Modiko Thabang the SCM manager at JB Marks Municipality. The order was granted.
18 NWP Selemale and another R100 000 04/12/2020
(GP19/2020) Impact: The pension benefits of the SCM manager was freezed in
lieu of an action proceedings to claim losses of R2 800 000.
The SIU instituted civil proceedings against Mr. Selemale, the SCM
Manager at JB Marks Municipality, with the aim of recovering losses
SIU v Selemale
19 NWP R2 796 537 01/02/2021 suffered as a result of irregular PPE procurement on behalf of the
(GP20/2020)
Municipality. The SIU will apply for case management on 30/04/2021.
The matter is set down for trial on 04 – 08/10/2021.
Total R1 089 796 272
42
ORDERS GRANTED IN THE SPECIAL TRIBUNAL
AS PER PREVIOUS REQUEST TO BRIEF SCOPA
ON COVID-19 REPORTS DATED 2/06/2021
43
No Province Description Value of outcome Date instituted Next Steps
Department of Health: SIU v The ECP DoH was interdicted from making payment
1 ECP Fabkomp (Pty) (Ltd) and R10 148 750 18/09/2020 against the contract and the ST set the contract
Others: (EC04/2020)
aside with costs.
The Municipality was interdicted from making

payment against the contract and the ST set aside
The OR Tambo Municipality
the contract. On 25/08/2021 the ST rescinded the
2 ECP “Door-to-door” case: R4 899 000 26/10/2020
(EC06/2020) order granted and directed that the matter be set
down for trial. The SIU will apply for Case
Management on 10/09/2021.
Judgement was granted by the ST in favour of the
The SIU v Ledla Structural
SIU and R26m were forfeited to the State. A number
3 GAU Development (Pty) Ltd and R139 000 000 06/08/2020
43 Others: (GP07/2020) of respondents appealed the decision and we are
awaiting dates from the SCA and the High Court.
The ST set aside the contract and ordered that the
Department of Social
respondent pay the profit of R864 000. Payment
4 KZN Development: Rosette R4 899 000 25/10/2020
has been received and the agreement made an
Investments (KN01/2020)
order by the ST.
Department of Social The ST set the contract aside and ordered that the
5 KZN Development: Gibela R6 708 000 25/10/2020 respondent file a statement of account. The SIU will
(KN02/2020) apply for Case Management on 03/09/2021.
44
No Province Description Value of outcome Date instituted Next Steps
The ST ordered that SIU must ensure personal
Development: LNA
6 KZN R3 960 000 25/10/2020 service by 31/05/2021. The SIU will apply for Case
Communications
Management on 03/09/2021.
(KN03/2020)
The ST set aside the contract and ordered that the
respondent pay the profit of R718 550. Payment
7 KZN Development: Zain Brothers R4 800 000 25/10/2020
has been received and the agreement made an
(KN04/2020)
order by the ST.
SIU v Modiko Thabang Final order granted to freeze pension. The SIU
8 NWP Selemale and another R100 000 04/12/2020 issued summons to recover damages/ losses under
(GP19/2020)
new case number.
45
STEPS TAKEN / ACTUAL OUTCOMES
46
NUMBER OF NEW REFERRALS FOR DISCIPLINARY ACTION
AGAINST OFFICIALS SINCE LAST REPORT AT 2 JUNE 2021
Number of new referrals made for Disciplinary Action against officials since last report at 2 June 2021
No of Date
Entity Level of Official Charges Progress to date
referrals referred
Contravention of regulation 13 of the Code of
Conduct of the Public Service Regulations of 01
August 2016; Contravention of section 32 of the
Public Service Act, 1994 (Act 103 of 1994), No disciplinary action has yet been instituted against
ECP DoT 1 28/04/2021 Junior Official under: Direction to perform other functions or to the official. The ECP DoT advised that the matter is
act in another post; Contravention of regulation currently being assessed by Labour Relations office.
11B under Chapter 2 of the Disaster
Management Act: Regulations relating to Covid-
19
Committed ‘financial misconduct’, as envisaged
Middle The SIU has been informed that the GAU DoH is
GAU DoH 1 15/04/2021 in section(s) 45(a)-(e) of the Public Financial
Management considering the evidence file that has been presented.
Management Act 1 of 1999.

Middle The SIU has been informed that the GAU DoH is
GAU DoH 1 14/04/2021 in section(s) 45(a)-(e) of the Public Financial
Management considering the evidence file that has been presented.

14/05/2021 Senior The SIU has been informed that the official was found
GAU DoH 6 in section(s) 45(a)-(e) of the Public Financial
21/04/2021 Management guilty and has been dismissed from the GAU DoH.
Contravention of section 3(a) and (b)(i)(aa) and

(ii)(bb) and (cc) of the PACOCA Act.
Contravention of section 4(a)(i)(aa) and (ii)(bb)
and (cc) of the PACOCA Act. Contravention of
section 8(1) and (2) of the PAM Act by being
Senior
party to a contract with a service provider that
KZN DoE 2 13/05/2021 Management Charges are to be drafted against both officials
was conducting business with the State, while
Junior Official
being an employee of the KZN DoE. Contravened
clause 9(1) of the PAM Act in that officials failed
to disclose their financial interests and or benefits
to and from the service providers business
account.
47
No of Date
referrals referred
Contravention of clauses 2(a) and (b) of the Code The matter has been received by the Mayor and has
of Conduct for Municipal Staff Members as set been tabled before the Municipal Council. The SIU
Umgeni Local Senior
1 13/05/2021 out in Schedule 2 of the MSA; and with sub- has received verbal confirmation that the Municipal
Municipality Management
paragraphs 1, 5 and 13 of the Disciplinary Manager being suspended and is waiting for written
Regulations for Senior Managers confirmation.
Senior Financial misconduct, Failure to comply with
The matters have been handed over to a service
Management section 217 of the Constitution, section 45(a), (b)
LIM DoH 5 11/05/2021 provider, who is appointed as initiator to process the
Middle and (c), section 81(1)(b) of the PFMA and Public
referrals.
Management Service Regulations.
Senior Financial misconduct, Failure to comply with
The matters have been handed over to a service
Management section 217 of the Constitution, section 45(a), (b)
LIM DoH 4 05/05/2021 provider, who is appointed as initiator to process the
Middle and (c), section 81(1)(b) of the PFMA and Public
referrals.
Management Service Regulations.
.
Failure to comply with the Public Service
Regulations of 2016, par 14(d) in that; "execute
his or her official duties in a professional and
Middle competent manner" The SIU has requested feedback from the MPU DoE
MPU DoE 11 29/04/2021
Management Contravention of Section 45(b), (c) and (d) of the but no feedback has been received.
PFMA in that; " the official failed to take effective
and appropriate steps to prevent any
unauthorised expenditure, irregular expenditure
and fruitless and wasteful expenditure".
Misconduct in that the procurement failed to
comply with the constitution prescript (section
217)
Senior
Mpumalanga Contravention of Section 45(b), (c) and (d) of the
Management The fist appearance was on 24/08/2021. The matter
Economic Growth 2 14/04/2021 PFMA in that the official failed to take effective
Middle was postponed to 31/08/2021 for witnesses to testify.
Agency and appropriate steps to prevent any
Management
and fruitless and wasteful expenditure as
required by the PFMA.
48
No of Date
referrals referred
Financial Misconduct in terms of section 171 (2)
City of Matlosana Senior (a) and (c) of Municipal Finance Management Act The official has resigned from the Municipality.
1 14/05/2021
Local Municipality Management No 56 of 2003 and Section 217 of the Criminal referral to be made to the NPA.
Constitution.
The (03) officials are charged of Financial

The NWP DoE lawyers have confirmed they will
Misconduct in terms of Sec 81(2) of Public
consult with the SIU in preparation for the hearing
finanace Management Act and Sec217 of the
Senior against one official. A disciplinary hearing has
constitution in that they both failed to ensure that
Management commenced against the 2nd official and the SIU
NWP DoE 3 23/04/2021 procurement/appointment of service providers for
Middle testified and is waiting for feedback in respect of the
procurement of PPE's in their Department is done
Management hearing. The disciplinary hearing against the 3rd
in accordance with the system that is
official will be set down after the hearing of the 2nd
fair,equitable,transparent,competitive and cost
official has been finalized.
effective.
Finacial Misconduct in terms of Section 171 (3) of

JB Marks Local The official has been suspended and the SIU will be
1 22/04/2021 Junior Official Municipal Finance Management Act and Section
Municipality informed when the disciplinary hearing will commence.
217 (1) of the Constitution.
Total 39
49
NUMBER OF REFERRALS FOR DISCIPLINARY ACTION AGAINST
OFFICIALS AS AT PREVIOUS BRIEFING DATED 2/06/2021
Number of referrals made for Disciplinary Action against officials reported at 2 June 2021
No of Date
referrals referred
Evidence was presented to the Chairperson and the
CEO of Amatola Water Board on 09/03/2021. The SIU
Contravention of: consulted with the case initiator on 30/06/2021 and the
Section 217(1) of the Constitution; Section 195(1) case was to proceed on 02/07/2021 at the offices of
of the Constitution; Section 45 of the PFMA the AWB. On the day of the hearing, the Chairperson
relating to responsibilities of other officials in a received a medical certificate from the official and the
Junior Official
Amatola Water Board 2 03/03/2021 department, trading entity or constitutional hearing was postponed to 23/07/2021. The disciplinary
Intern
institution; SCM Policy for Goods and Services proceedings were concluded and the Chairperson will
dated 29/11/2019 and Declaration of Interest in be submitting his verdict on the matter. No action has
respect of the SCM procurement system. been taken against the other official, however, the
Various offences of corruption. Labour Relations Unit submitted a recommendation to
the Acting Chief Executive Officer for her contract not
to be renewed. No further feedback has been received.
Contravention of: The disciplinary action has been instituted by the ECP
Section 195(1)(a) of the Constitution; Section DoE and the SIU led evidence. The matter was
Middle
ECP DoE 1 12/04/2021 217(1) of the Constitution; the provisions of postponed to 28 and 29/08/2021, however, witnesses
Management
Section 4 of the PRECCA; the Public Service were advised late which then led to another
Code of Conduct. postponement to 28 and 29/09/2021.
Contravention of:
The Public Service Code of Conduct, read with
paragraph 13; 14 of the Eastern Cape Provincial
The disciplinary action has been instituted by the ECP
Middle Policy, signed on 28/08/2018; Regulation 19
ECP DoE 1 16/04/2021 DoE and the hearing was held and the concluded. The
Management which deals with details of interests to be
process is awaiting closing arguments.
disclosed; Regulation 13 of the Public Service
Regulations, 2016 which relates to the Ethical
Conduct; Section 195(1)(a) of the Constitution.
Contravention of:
Section 217(1) of the Constitution; Section 195(1)
of the Constitution relating to the “Basic values The referral was made to the office of the Premier and
Senior and principles governing public administration; no disciplinary action has yet been instituted. The SIU
ECP DoH 1 01/02/2021
Management Section 38(1) of the PFMA; the 2017 ECP DoH is awaiting for a formal response from the HoD of the
SCM Delegation; paragraph 13 of the Public ECP DoH and the State Law Advisor.
Service Regulations, 2016, which relates to
Ethical Conduct. 50
No of
Entity Date referred Level of Official Charges Progress to date
referrals
Contravention of:
Section 217(1) of the Constitution; Paragraph
46(1)(a)(b) and (2)(a) of the Municipality's SCM A disciplinary board was established to process the
Nelson Mandela Bay
Senior Policy, version 5 of 2018; Schedule 2 of the Local referral. The Municipality advised that no disciplinary
Metropolitan 1 31/03/2021
Management Government: MSA relating to the Code of action has taken place and the processes are still
Municipality
conduct for Municipal staff members; Section underway.
78(1)(a)(b)&(c) of the MFMA; Section 172 (2)(c)
and (d) of the MFMA.
Contravention of:
Section 78(1) of the MPFA, read with section
The SIU evidence was presented at two Municipal
105(1), Clause 2 of Schedule 2: Code of Conduct
Council meetings on 26/01/2021 and 19/03/2021
for Municipal Staff Members of the Local
OR Tambo District 25/11/2020 Senior respectively. This SIU report was accepted by the
3 Government: MSA; the Municipality's SCM
Municipality 20/11/2020 Management Council through a Council resolution taken in these
Policy; Section 217(1) of the Constitution; Section
meetings. No disciplinary action has yet been instituted
195(1) of the Constitution; Section 61(1) of the
against the officials.
MFMA read with section 61(2).
Committed an offence of fraud.
Failure to comply with:
Section 38(1) of the PFMA and therefore the The Acting HoD, Adv. Tsualei confirmed that the
FSP Department of Senior
1 02/02/2021 official is guilty of financial misconduct in terms of matter is still under consideration by the Office of the
Human Settlements Management
Section 81 of the PFMA; Regulation 11 and 14 of Premier and no disciplinary steps have been taken yet.
Chapter 2 of the Public Service Regulations.
Failure to comply with:
FSP Provincial Senior Section 45(a), (b), (c), (d) and (e) of the PFMA; The official has been transferred to another
1 09/11/2020
Treasury Management Regulation 11 and 14 of Chapter 2 of the Public Department and has since resigned.
Service Regulations.
51
No of
referrals
Middle Committed ‘financial misconduct’, as envisaged The GAU DoH has confirmed receipt of the referral and
GAU DoH 1 30/03/2021
Management in section(s) 81(1)(a) and/or 81(1)(b) of the PFMA the matter is under consideration
According to SA Express who employs the Manager,

by law all contracts of employment between the
Middle
GAU DoH 1 03/12/2020 Failure to declare her financial interest. company and its employees have been suspended and
Management
no disciplinary process or actions are currently being
undertaken against any employee
The disciplinary proceedings have been finalised and

Senior Committed ‘financial misconduct’, as envisaged
GAU DoH 3 05/01/2021 the SIU and the GAU DoH are waiting for the final
Management in section(s) 81(2) of the PFMA.
decision of the Chairperson.
The SIU was informed that a disciplinary process was

Spokesperson of
GAU DoH 1 10/11/2020 Failure to declare her financial interest. to commence. The SIU awaits the outcome of this
the President
process.

23/09/2020 Senior The official resigned from the GAU DoH on or about
GAU DoH 2 in section(s) 81(1)(a) and/or 81(1)(b) of the
25/09/2020 Management 03/10/2020.
PFMA.
Senior Committed ‘financial misconduct’, as envisaged The SIU has been informed that the official was found
GAU DoH 1 18/09/2020
Management in section(s) 81(2) of the PFMA. guilty and has been dismissed from the GAU DoH.
52
No of
referrals
The SIU has been informed that the official resigned

Middle Committed ‘financial misconduct’, as envisaged
GAU DoH 1 18/09/2020 from the GAU DoH prior to receiving the final verdict
Management in section(s) 81(2) of the PFMA.
from the Chairperson.
The City Manager’s office was contacted and they

indicated that one official had been placed on
Senior
suspension on 13/08/2021. On 28/07/2021, the
Management Committed ‘financial misconduct’, as envisaged
City of Johannesburg 5 30/03/2021 Chairperson of the JPC Board advised the SIU that a
Middle in section(s) 172(2) of the MFMA.
firm of attorneys have been appointed to facilitate the
Management
disciplinary process and will advise the City Manager
of the outcome.
The Municipality has confirmed that it has not yet
City of Tshwane instituted any disciplinary proceedings in this regard.
Middle Committed ‘financial misconduct’, as envisaged
Metropolitan 2 03/12/2020 The Head of Labour Relations, Mr Ronald Oppelt
Management in section(s) 172(2) of the MFMA.
Municipality advised on 23/08/2021, that the hearing has not
commenced.
Senior No charge sheets have been drafted yet. The SIU is
Management Contravention of Section 45(a),(b),(c) of the following up on the progress of these proceedings. The
National DCS 4 18/02/2021
Middle PFMA. SIU will be meeting with DCS to discuss the settlement
Management of the charge sheets on 13-14/09/2021.
The SIU attended and testified at the hearings of four
Senior Contravention of:
National Department of officials. All 4 officials pleaded guilty to the charges an
Management Section 217(1) of the Constitution;
Employment and 7 11/12/2020 were given final written warnings. 1 further matter has
Middle Section 51(1)(a)(iii), 56, 57(a), (c) and (d) and 83
Labour been finalized and the SIU awaits the final sanction.
Management of the PFMA.
A further 4 matters are still ongoing.
53
No of
referrals
Three officials resigned before the hearings could
Senior Contravention of: commence. Disciplinary hearings in respect of two
Management Section 217(1) of the Constitution; officials have commenced. One official was suspended
National Health
8 10/02/2021 Middle Section 51(1)(a)(iii), 51(1)(e)(i),(ii) and (iii) and for three months without pay and is expected back at
Laboratory Services
Management 57(a), (c) and (d) of the PFMA; work on 01/10/2021. One official received a written
Junior Officials National Treasury Practice Note 4 of 2008/2009. warning which is valid for 12 months. One official was
dismissed.
Contravened section 45(a) of the PFMA by failing
to ensure that the system of financial
management and internal control established for
KZN DoE was carried out within their area of The matter was referred to the MEC, who requested
responsibility. that the SIU review its findings based on further
Contravened section 45(c) of the PFMA by failing submissions that were made. The SIU has responded
to take appropriate steps to prevent, within their indicating that it maintains its stance and that
Senior area of responsibility, any unauthorised, irregular disciplinary action should be instituted. A letter was
Management or fruitless and wasteful expenditure. submitted on 23/03/2021 by the office of the Minister of
KZN DoE 7 11/02/2021 Middle Contravened the Code of Conduct for the Public Basic Education to the MEC relating to their
Management Service in terms of clause C.1.4 failed to disagreement with the SIU's finding wherein she
Junior Officials familiarize themselves with and abide by all requested that the MEC engage with the SIU. There
statutory and other instructions applicable to their has been no engagement from the office of the MEC
conduct and duties; clause C.1.3 failed to loyally with the SIU since the receipt of this letter. A copy of
execute the policies of the Government in the the letter was submitted by the DoE CFO to the SIU on
performance of their official duties as contained in 18/08/2021.
all statutory and other prescripts; clause C.4.4
failed to execute their duties in a professional and
competent manner.
54
No of
referrals
Contravened section 45(a) of the PFMA by failing
to ensure that the system of financial
management and internal control established for
KZN DoE was carried out within their area of
responsibility.
Contravened section 45(c) of the PFMA by failing
Disciplinary action against one official has been
to take appropriate steps to prevent, within their
finalized and the SIU is awaiting the sanction. The
area of responsibility, any unauthorised, irregular
Senior disciplinary against a second official is in progress and
or fruitless and wasteful expenditure
Management the matter was set down for the employee to provide
KZN DoE 6 05/11/2020 Contravened the Code of Conduct for the Public
Middle witnesses for the hearing from 2 - 11/08/2021. The
Service in terms of clause C.1.4 failed to
Management KZN DoE is busy finalizing the disciplinary hearing.
familiarize themselves with and abide by all
Charges have been drafted for all the other officials
statutory and other instructions applicable to their
and dates are to be set down for disciplinary hearings.
conduct and duties; clause C.1.3 failed to loyally
execute the policies of the Government in the
performance of their official duties as contained in
all statutory and other prescripts; clause C.4.4
failed to execute their duties in a professional and
competent manner.
Preliminary investigation by the municipality suggested
that one of the officials could not be held liable on the
Senior Contravention of: grounds that he advised the team to follow SCM
Sekhukhune District Management Section 171(1)( c) of the MFMA; Schedule 2 of procedures, further, the same official resigned from the
5 30/09/2020
Municipality Middle the MSA and the Municipality's SCM Policy 2019- Municipality. Disciplinary proceedings for misconduct
Management 2020. have been instituted and are proceeding against 3
officials. One more official resigned before being
served with a letter of suspension.
55
No of
referrals
217)
Mpumalanga Contravention of Section 45(b), (c) and (d) of the The first appearance was 24 August 2021. The matter
Senior
Economic Growth 2 09/03/2021 PFMA in that the official failed to take effective has been postponed to 31/08/2021 for witnesses to
Management
Agency and appropriate steps to prevent any testify.
217)
Mpumalanga Contravention of Section 45(b), (c) and (d) of the The first appearance was 24 August 2021. The matter
Middle
Economic Growth 1 21/01/2021 PFMA in that the official failed to take effective has been postponed to 31/08/2021 for witnesses to
Management
Agency and appropriate steps to prevent any testify.
Senior Irregular initiation of the procurement process; The matter postponed to a date which both, the MPU
Management Contravention of the SLA entered into by the DoH and the official agreed to. The reason for the
MPU DoH 4 11/03/2021
Middle MPU DoH. Contravention of C 4.1, C 4.4 and postponement is that the official has declared a
Management C.4.8 of the Public Service Regulation 2016. dispute.
Senior Irregular initiation of the procurement process; The matter postponed to a date which both, the MPU
Management Contravention of the SLA entered into by the DoH and the official agreed to. The reason for the
MPU DoH 2 29/10/2020
Middle MPU DoH. Contravention of C 4.1, C 4.4 and postponement is that the official has declared a
Management C.4.8 of the Public Service Regulation 2016. dispute.
56
No of
referrals
MPU Department of Irregular procurement of PPE. Contravention of

09/03/2021 Senior The HoD has informed the SIU that both officials
Culture, Sports and 4 Section 45(b) and (c) of the PFMA and C.4.4 and
22/02/2021 Management received written warnings.
Recreation C 4.8 Public Service Regulation.
Failed to follow SCM processes and prescripts

when appointing service providers for PPE;
The manager is currently on precautionary suspension.
procured PPE without the requisite authority;
City of Matlosana Middle The disciplinary hearing was postponed and then set
1 09/03/2021 approved quotations that were above the
Local Municipality Management down again from 2-3/07/2021. The SIU is waiting for
threshold set by Treasury and failed to ensure
feedback on the outcome of the hearing.
that the appointed service providers are tax
compliant and registered on CSD.
They failed to ensure that the Department The disciplinary hearings against one official
contracts for the supply of facial masks in commenced and the SIU testified. The official was
Middle
13/11/2020 according with requirements of S217, SCM found guilty and the Chairperson pronounced that the
NWP DoE 2 Management
30/09/2020 Policy, National Treasury Note 5 and other official should be dismissed as the sanction on
Junior Official
procurement prescripts and resulting in the 24/08/2021. The official has been given 5 days to
Department incurring irregular expenditure. lodge an appeal.
They failed to ensure that the Department
contracts for the supply of facial masks in The advocate who has been assigned to handle
Middle according with requirements of S217, SCM disciplinary cases of the Department we cant get hold
NWP DoH 1 15/12/2020
Management Policy, National Treasury Note 5 and other of him, the Department is unable to give an update as
procurement prescripts and resulting in the he is the one assigned to handle the matters.
Department incurring irregular expenditure.
57
No of
referrals
He failed to ensure that the municipality contracts
for the supply of facial masks in according with The SIU has been contacted by a law firm who is
JB Marks Local Middle requirements of S217, Treasury Regulation investigating the allegations against the official. The
1 26/11/2020
Municipality Management Circular 100 and other procurement prescripts SIU is waiting for the Municipality to confirm the date of
and resulting in the municipality incurring irregular the hearing.
expenditure.
for the supply of facial masks in according with
The matter was set down for the week of 26 –
JB Marks Local Senior requirements of S217, Treasury Regulation
2 08/10/2020 30/07/2021 and it was postponed to the week of 6 -
Municipality Management Circular 100 and other procurement prescripts
10/09/2021.
and resulting in the municipality incurring irregular
expenditure.
In June 2021 the Executive Mayor requested a copy of
the disciplinary file against one official because the file
Senior for the supply of facial masks in according with
has been misplaced. The file has been made available
Ratlou Local Management requirements of S217, Treasury Regulation
2 06/10/2020 to them. In July 2021 the Labour Relations Office
Municipality Middle Circular 100 and other procurement prescripts
contacted the SIU to obtain a copy of the disciplinary
Management and resulting in the municipality incurring irregular
file for the CFO and now they are waiting to appoint
expenditure.
the chairperson of the hearing in both matters.
The National
Department of The offences are failure to comply with the
Forestry, Fisheries and Senior provisions of sections 45 (a), (b) and (c) of the
1 25/02/2021 The disciplinary hearing against the official is
the Environment Management Public Finance Management Act and negligence
scheduled for 07/09/2021.
(Regional office in the in the performance of her duties, amongst others.
Western Cape)
Total 88
Grand Total 127
58
NUMBER OF NEW REFERRALS TO THE RELEVANT
PROSECUTING AUTHORITY (NPA) SINCE LAST REPORT AT 2
JUNE 2021
Number of new referrals made to the National Prosecuting Authority since last report at 2 June 2021
No of Level of
Entity Date referred Charges Progress to date
referrals Official
A criminal case (Park Road CAS 553/06/2021) has
Entities and been registered and is currently being investigated by
FSP Provincial Treasury 54 20/04/2021 Fraud, alternatively forgery and uttering.
Directors the Hawks. The case docket was referred to the
SCCU on 7/07/2021 for a decision, which is pending.
Committed ‘financial misconduct’, as A criminal Case was opened with reference
06/05/2021 Senior
GAU DoH 2 envisaged in section(s) 81(1)(a) and/or Johannesburg CAS 484/12/2020. The matters are
19/04/2021 Management
81(1)(b) of the PFMA being dealt with further by the SAPS.
Fraud and Corruption. Contravention of
section 3(a) and 3(b)(i)(aa) and 3(ii)(bb) and
(cc) of the PACOCA Act. Official
contravened Clause C.5.3 of the Public
Service Code of Conduct by accepting gifts A prosecutor has been assigned. The DPP has
Entities and or benefits of R30 000 from the service advised that the matter has been referred to the
KZN DoE 5 31/05/2021
Directors provider, which benefit may be construed as Hawks for assessment with a view to register a
bribes. Official contravened Clause 13(b) of criminal case.
the PS Regulations, 2016 in that the official
engaged in a transaction or action that was
in conflict with, or which infringed upon the
execution of official duties at the KZN DoE
Fraud and corruption corruption in terms of
Section 3 and 4 and read with Section 17 of
1 Entity and the
the PACOCA Act. Official contravened
Director The prosecutor has allocated additional tasks for the
Public Service Act 103 of 1994 (“PSA,
KZN DoE 4 13/05/2021 Senior SIU which are currently being processed before the
1994”), the Public Administration Act 11 of
Management matter can be referred to the Hawks for registration.
2014 (“PAM Act”). Contravention of section
Junior Official
4(a)(i)(aa) and (ii)(bb) and (cc) of the
PACOCA Act.
Senior Contravention of Section 173(1) of the A prosecutor has been assigned to the matter. The
Umgeni Local Municipality 1 13/05/2021
Management MFMA. matter has been referred to SAPS to open a docket.
Total 66
59
NUMBER OF REFERRALS TO THE RELEVANT PROSECUTING
AUTHORITY (NPA) AT PREVIOUS BRIEFING DATED 2/06/2021
Number of referrals made to the National Prosecuting Authority reported at 2 June 2021
No of Date
referrals referred
A criminal case was registered under Mthatha CAS
365/04/2021. The accused was arrested on 08/07/2021
ECP DoH 1 01/03/2021 Junior Official Fraud, alternatively forgery and uttering.
and released on R1 000 bail. The criminal case has
been remanded to 31/08/2021.
A criminal case (CAS 08/09/2020) is under investigation
Senior by the Hawks and the SIU is collaborating with the NPA
ECP DoH 2 12/11/2020 Fraud and/or conspiracy to commit fraud.
Management and the Hawks. An NPA Prosecutor was assigned to
this matter. The matter is still under investigation.
A criminal case is already under investigation by the
Hawks (CAS 64/07/2020). The Hawks arrested the
Senior Director of the Entity and one official. The criminal case
OR Tambo District Management Fraud & Contravention of Section 173 of the was remanded until 25 March 2021. An NPA Prosecutor
3 13/11/2020
Municipality 1 Entity and the MFMA. was assigned to this matter. The matter was set down for
Director trial on 08/06/2021. The case was heard at the Mthatha
High Court on 19/07/2021 and was remanded to 28 –
29/10/2021.
Park Road CAS 572/03/2021 was registered and
Failure to comply with Section 38(1) of the
FSP Department of Senior investigated by the Hawks. The case docket was
1 11/12/2020 PFMA and is therefore guilty of an offence in
Human Settlements Management referred to the SCCU on 10/08/2021 for a decision,
terms of Section 86 of the PFMA.
which is pending.
Criminal cases were registered at Parkroad Police
Senior Station and are currently being investigated by the
30/09/2020 Management Hawks under CAS 933/11/2020 (SCMQ608 & 609/20/21)
FSP Provincial Treasury 6 Fraud.
12/11/2020 1 Entity and the and CAS 665/10/2020 (SCMQ3/2020). A prosecutor has
CEO been assigned to the matters and the investigation by
the Hawks is ongoing.
60
No of Date
referrals referred
A criminal Case was opened with reference
Committed ‘financial misconduct’, as
Johannesburg CAS 484/12/2020. The matters are under
29/03/2021 Senior envisaged in section(s) 81(1)(a) and/or
GAU DoH 3 further investigation or are being dealt with further by the
14/01/2021 Management 81(1)(b) of the Public Financial Management
SAPS. The matter was submitted to the prosecutor for a
Act 1 of 1999.
decision.
1 Entity and the The matters are under investigation by the SAPS. The
GAU DoH 2 17/03/2021 Fraud.
Director matter was submitted to a prosecutor for a decision.
This matter is also being investigated by the Gauteng
1 Entity and 3 Money laundering, fraud, alternatively forgery Serious Corruption Investigation under enquiry number
GAU DoH 4 17/03/2021
Directors and uttering 5/08/2020. The SIU is waiting for a decision by the NPA
on whether or not criminal proceedings will be instituted.
2 Entities and 2 The SIU is waiting for a decision by the NPA whether
Directors criminal proceedings will be instituted.
1 Entity and the The SIU is waiting for a decision by the NPA whether
Director criminal proceedings will be instituted.
Committed ‘financial misconduct’, as A criminal case was opened with reference
25/09/2020 Senior envisaged in section(s) 81(1)(a) and/or Johannesburg CAS 484/12/2020. The matters are under
GAU DoH 2
22/09/2020 Management 81(1)(b) of the Public Financial Management further investigation or are being dealt with further by the
Act 1 of 1999. SAPS.
A criminal case was opened with reference
1 Entity and the
GAU DoH 2 23/10/2020 Fraud. Johannesburg CAS 360/12/2020. The matters are under
Director
investigation by the SAPS.
Senior The NPA has acknowledged receipt of the referral and
Management Committed ‘financial misconduct’, as the matters are still under consideration.The NPA has
CoJ 5 30/03/2021
Middle envisaged in section(s) 172(1) of the MFMA. confirmed that the matter is still under consideration and
Management will inform the SIU of their actions.
61
No of Date
referrals referred
The SIU is monitoring the criminal case and are
Senior The offence is fraud, corruption and money providing full support to the SAPS. On 15/08/2021 one
NHLS 11 11/12/2020
Management laundering. official and a service provider was arrested and
appeared in court. Both were released on R20 000 bail.
A false order was used to solicit payment The Hawks have confirmed that the investigation into this
SANDF 1 04/03/2021 Possible Syndicate
from the SANDF relating to two entities. matter is still ongoing.
The matter has been referred to the Hawks under DPCI
Enq 03/07/2021. The SIU met with the lead investigator
2 Entities, their and gave an update on the matter. The SIU contacted
National DPWI 7 28/09/2020 Directors and Fraud. the Acting DG of National DPWI to provide all the original
Project Managers records to the investigating officer at the Hawks. The
case is currently with the Senior Public Prosecutor for
decision.
Committed acts of fraud by misrepresentation
A prosecutor has been assigned. The DPP has advised
in the bid documents. Forgery of signatory on
that the matter has been referred to the DPCI for
3 Entities and their bid documents. Misrepresented that they had
KZN DoE 6 31/03/2021 assessment with a view to register a criminal case.
Directors relationship links or material and/or familial
Prosecutor has been engaging with SIU investigator on
interests amongst the three companies which
the matter.
bid for the same contract.
Comitted acts of fraud, in that they
misrepresented the signatory of the Director A prosecutor has been assigned. The DPP has advised
15/10/2020 3 Entities, their on bid documents. Forgery of Directors that the matter has been referred to the DPCI for
KZN DoE 9 20/10/2020 Directors and signatory on bid documents. Misrepresented assessment with a view to register a criminal case. The
27/10/2020 Managers the Directorship in order to benefit from the prosecutor has been engaging with SIU on the matter,
B-BBEE procurement recognition in terms of awaiting further statements. Espani nolle prosequi.
the Preferential Procurement scorecard.
62
Date
Entity No of referrals Level of Official Charges Progress to date
referred
Contravention of:
Section 38(1) read with Section 86(1) of the PFMA.
Willfully and/or in a grossly negligent manner failed to
maintain appropriate procurement and provisioning
system which is fair, equitable, transparent, competitive
and cost-effective; take effective and appropriate steps to
prevent within his area of responsibility irregular and/or
fruitless and wasteful expenditure.
Contravention of Section 86(1) of the PFMA for a breach
of general responsibilities as prescribed in section 38 as
follows - subsection (1)(a)(iii) prescribes that the
accounting officer must ensure that the Department has
and maintains an appropriate procurement and A prosecutor has been assigned. The DPP
provisioning system which is fair, equitable, transparent, has advised that the matter has been
Senior
KZN DSD 1 07/12/2020 competitive and cost-effective. In approving the awards referred to the Hawks for assessment with a
Management
before the submission, the official compromised the view to register a criminal case. Awaiting a
principles of section 217 of the Constitution in so far as it decision from the Prosecutor.
relates to the department maintaining an appropriate
procurement and provisioning system which is fair and
equitable. subsection (1) (c) (ii) prescribes that the
accounting officer for a department must take effective
and appropriate steps to prevent unauthorised, irregular
and fruitless and wasteful expenditure and losses
resulting from criminal conduct. The officials approval of
the award to the service providers on four occasions
before having approved the submission for procurement;
constitutes an irregularity with the resultant irregular
expenditure and hence, he failed to take effective and
appropriate steps to prevent irregular expenditure.
63
Date
Entity No of referrals Level of Official Charges Progress to date
referred
Contravention of:
Section 38(1) read with Section 86(1) of the PFMA.
Willfully and/or in a grossly negligent manner failed to
maintain appropriate procurement and provisioning
system which is fair, equitable, transparent, competitive
and cost-effective; take effective and appropriate steps to A docket was opened in July 2020 - CAS
prevent within his area of responsibility irregular and/or PMB 227/07/2020 , however it has not been
fruitless and wasteful expenditure. entered on the SCCU system. Emanating
Contravention of Section 86(1) of the PFMA for a breach from the investigations the Tax Unit has
of general responsibilities as prescribed in section 38 as issued summons against 5 of the service
follows - subsection (1)(a)(iii) prescribes that the providers for tax evasion. Presently in
accounting officer must ensure that the Department has discussions with the investigating officer to
and maintains an appropriate procurement and decide on the way forward regarding the
provisioning system which is fair, equitable, transparent, prosecution of 9 of the entities based on
Senior
KZN DSD 1 08/10/2020 competitive and cost-effective. In approving the awards statements obtained from HPCSA.
Management
before the submission, the official compromised the Additional information received from
principles of section 217 of the Constitution in so far as it SAPHRA for possible prosecution.
relates to the department maintaining an appropriate Prosecutor still going through the
procurement and provisioning system which is fair and information. SAHPRA has provided witness
equitable. subsection (1) (c) (ii) prescribes that the statement and as a result 3 dockets has
accounting officer for a department must take effective been opened already for the contravention of
and appropriate steps to prevent unauthorised, irregular SAHPRA related legislation against 3
and fruitless and wasteful expenditure and losses suppliers and 4 additional dockets against 4
resulting from criminal conduct. The officials approval of suppliers will also be opened.
the award to the service providers on four occasions
before having approved the submission for procurement;
constitutes an irregularity with the resultant irregular
expenditure and hence, he failed to take effective and
appropriate steps to prevent irregular expenditure.
64
No of Date
referrals referred
The case has been registered by the Hawks, Polokwane
1 Entity and the
LIM CoGHSTA 2 02/12/2020 Fraud. CAS 384/12/2020. A prosecutor has been allocated. The
Director
Hawks are conducting further investigations.
The NPA has assigned a prosecutor and a criminal case
Sekhukhune District Middle
2 30/09/2020 The offence is fraud and financial misconduct. was opened with CAS 33/07/2020. The matter is
Municipality Management
currently being investigated by the Hawks.
Failed to ensure that the NWP DoH contracts
for the supply of PPE according to the
The matter was referred back to SIU to finalise queries
Middle requirements of Section 217, SCM Policy,
NWP DoH 1 04/02/2021 that were raised by the NPA. The SIU is addressing the
Management National Treasury Note 5 and other
queries and will resubmit the file back on the 26/08/21.
procurement prescripts which resulted in the
NWP DoH incurring irregular expenditure.
Senior requirements of Section 217, SCM Policy, The matter has been allocated to the Hawks for further
Ratlou Local Municipality 1 08/10/2020
Management Treasury Regulation Circular 100 and other investigation.
The matter is still under review by the NPA and the SIU
JB Marks Local Senior requirements of Section 217, SCM Policy,
1 14/10/2020 is waiting for a meeting date to be confirmed with the
Municipality Management Treasury Regulation Circular 100 and other
NPA to further discuss the matter.
The National Department
of Forestry, Fisheries and A criminal case was opened at Pretoria Central under
1 Entity and the The offence is fraud, alternatively forgery and
the Environment (Regional 2 08/10/2020 CAS 26/11/2020. On 20/07/2021 the SIU was informed
Director uttering.
office in the Western that the investigation was at an advanced stage.
Cape)
Total 82
Grand Total 148

65
NUMBER OF REFERRALS MADE FOR EXECUTIVE ACTION
AT PREVIOUS BRIEFING DATED 2/06/2021
Number of referrals made for Executive and/or Administrative Action reported at 2 June 2021
No of Level of
Entity Date referred Charges Progress to date
referrals Official
Contravention of:
Section 136(1) and 217(1) of the Constitution; Section The MEC was discharged from office by the Premier
ECP DoH 1 01/02/2021 Former MEC
63(1)(b) and section 64(1)(2)(3) of the PFMA and section on 18/02/2021.
2(2)(a)(i) (b)(iv)(v) of the Executive Members Ethics Act.
The MEC has since been discharged. On 23/10/2020,

the former MEC filed an urgent application in the High
Court of South Africa (Gauteng Division, Pretoria)
under Case No. 555372/2020 to review and set aside
Failed to fulfil his obligations to comply with the
the SIU referrals as being unlawful, unconstitutional
Constitution; with his general oversight responsibilities in
and therefore invalid. The SIU opposed the
GAU DoH 1 18/09/2020 Former MEC respect of the Gauteng DoH which contributed thereto that
application. The matter was set down for hearing on
the Gauteng DoH failed to comply with the prescripts of the
21/01/2021 before the full bench of the High Court
Constitution, and his obligations in terms of the PFMA.
and on the same day judgment was reserved. The
court on 12/04/2021 handed down judgment and
dismissed his application to review and set aside the
SIU referrals with costs.
The Office Bearer caused the awarding of a donation to
Potch-Tlokwe Chamber of Commerce and this donation is
construed as irregular and invalid in terms of Chapter 2 of
the Constitution for lack of full compliance with all the
prescripts regulating public sector procurement, as inter alia
set out in Section 217(1) of the Constitution, Section A referral was made for disciplinary action to be taken
112(1)MFMA, as read with the Treasury Regulations and against an office bearer in respect of the awarding of
JB Marks Local the relevant Instructions issued by National Treasury. Any a donation to an entity. The SIU met with the newly
1 12/11/2020 Office bearer
Municipality payments that the Municipality made to Potch-Tlokwe appointed MEC of CoGHSTA who confirmed that they
Chamber without any contracts and SCM processes being were taking the necessary steps. The office bearer
followed, is in all likelihood deemed to constitute ‘irregular has since resigned from the Municipality.
expenditure’, as referred to in the MFMA; and Potch-Tlokwe
Chamber invoiced the Municipality for catering however, no
supporting documents were attached to the invoice which
could result in the Municipality incurring ‘fruitless and
wasteful expenditure’.
66
HOLDING ACCOUNTING OFFICERS AND ACCOUNTING
AUHORITIES TO ACCOUNT
• The SIU is ensuring that the Accounting Officers and Accounting Authorities of State institutions where
irregularities have been found are being held accountable.
• Accountability is being enforced in terms of the Public Finance Management Act, the Municipal Finance
Management Act and other applicable rules and regulations.
67
NUMBER OF NEW REFERRALS MADE FOR ADMINISTRATIVE
ACTION (WHICH INCLUDES BLACKLISTING) SINCE LAST
REPORT AT 2 JUNE 2021
Number of new referrals made for Administrative Action (which includes Blacklisting) since last report at 2 June 2021
State Institution No of referrals Date referred Charges Progress to date
Fraud.
In terms of Clauses 23.3 to 23.7 of the General Conditions of The SIU has been informed that a meeting is scheduled
Contract as prescribed by the NT, government should not be a with the Legal Department in order to obtain guidance in
FSP Provincial party to contracts involving fraud and should not contract with respect of the action that has been recommended.
54 28/04/2021
Treasury parties involved in alleged fraudulent activity. The NT maintains Provincial Treasury has agreed to provide written
a database/list of restricted suppliers in terms of Regulation feedback once the meeting has taken place and a
16A9.1(c) of the Treasury Regulations issued in terms of the decision has been taken.
PFMA.
31/03/2021
16/04/2021
In terms of section 8(1) of the Competition Act 89 of 1998 (“the The Commissioner has confirmed receipt of the referrals
19/04/2021
GAU DoH 15 Competition Act”) a dominant firm may not charge an excessive and they are attending to them.
29/04/2021
price to the detriment of consumers or customers.
10/05/2021
21/05/2021
A manufacturer, distributor (including importer and/or exporter)

or wholesaler, as referred to in Section 22C(1)(b) of the
Medicines and Related Substances Act, 1965 (Act No. 101 of
1965) (“the Medicines Act”) must prior to commencing
business, apply to SAHPRA for a license to manufacture or
distribute medical devices. Medical devices, in terms of the
Medicines Act, include any instrument, apparatus, implement,
machine, material or other similar or related article intended by The Commissioner has confirmed receipt of the referrals
20/04/2021
GAU DoH 9 the manufacturer to be used, alone or in combination, for and they are attending to them.
27/05/2021
humans or animals, for (inter alia) the diagnosis, prevention,
monitoring, treatment or alleviation of disease or for disinfection
of medical devices. The listed companies were not registered
with, and licensed by the SAHPRA to distribute medical
devices, in circumstances where one or more of the PPE that
was/were distributed by the companies to the GAU DoH would
qualify as medical device(s).
68
NUMBER OF NEW REFERRALS MADE FOR ADMINISTRATIVE
ACTION (WHICH INCLUDES BLACKLISTING) SINCE LAST
REPORT AT 2 JUNE 2021
Number of new referrals made for Administrative Action (which includes Blacklisting) since last report at 2 June 2021
No of
State Institution Date referred Charges Progress to date
referrals
A manufacturer, distributor (including importer and/or exporter) or
wholesaler, as referred to in Section 22C(1)(b) of the Medicines and Related
Substances Act, 1965 (Act No. 101 of 1965) (“the Medicines Act”) must prior
to commencing business, apply to SAHPRA for a license to manufacture or
distribute medical devices. Medical devices, in terms of the Medicines Act, Affidavits received from Adv of SAHPRA which
KZN DoE 21 21/04/2021 include any instrument, apparatus, implement, machine, material or other are being reviewed. NPA Referrals being
similar or related article intended by the manufacturer to be used, alone or in drafted for submission to NPA.
combination, for humans or animals, for (inter alia) the diagnosis,
prevention, monitoring, treatment or alleviation of disease or for disinfection
of medical devices. The listed companies were not registered with, and
licensed by the SAHPRA to distribute medical devices.
Fraud.
In terms of Clauses 23.3 to 23.7 of the General Conditions of Contract as
prescribed by the NT, government should not be a party to contracts
The administrative process is underway. Matter
KZN DoE 2 13/05/2021 involving fraud and should not contract with parties involved in alleged
is being reviewed by DoE.
fraudulent activity. The NT maintains a database/list of restricted suppliers in
terms of Regulation 16A9.1(c) of the Treasury Regulations issued in terms
of the PFMA.
A manufacturer, distributor (including importer and/or exporter) or
wholesaler, as referred to in Section 22C(1)(b) of the Medicines and Related
Substances Act, 1965 (Act No. 101 of 1965) (“the Medicines Act”) must prior
to commencing business, apply to SAHPRA for a license to manufacture or
distribute medical devices. Medical devices, in terms of the Medicines Act, Affidavits received from Adv of SAHPRA which
KwaDukuza Local
8 21/04/2021 include any instrument, apparatus, implement, machine, material or other are being reviewed. NPA Referrals being
Municipality
similar or related article intended by the manufacturer to be used, alone or in drafted for submission to NPA.
combination, for humans or animals, for (inter alia) the diagnosis,
prevention, monitoring, treatment or alleviation of disease or for disinfection
of medical devices. The listed companies were not registered with, and
licensed by the SAHPRA to distribute medical devices.
Total 109
69
NUMBER OF REFERRALS MADE FOR ADMINISTRATIVE ACTION
(WHICH INCLUDES BLACKLISTING) AT PREVIOUS BRIEFING
DATED 2/06/2021
Number of new referrals made for Administrative Action (which includes Blacklisting) reported at 2 June 2021
No of
referrals
30/03/2021
29/03/2021
12/03/2021
In terms of section 8(1) of the Competition Act
11/03/2021
89 of 1998 (“the Competition Act”) a dominant The Commissioner has confirmed receipt of the referrals and they are
09/03/2021
firm may not charge an excessive price to the attending to them. The matter is still under consideration by the
GAU DoH 18 19/02/2021
detriment of consumers or customers. Competition Commissioner.
18/02/2021
17/02/2021
11/12/2020
09/11/2020
Fraud.
In terms of Clauses 23.3 to 23.7 of the General
Evidence was referred to the GAU DoH, with a courtesy copy to the NT,
Conditions of Contract as prescribed by the NT,
in respect of 1 entity and its Director. The referral is a motivation for
government should not be a party to contracts
them to be placed on the NT Central Database/List of Restricted
involving fraud and should not contract with
GAU DoH 2 10/02/2021 Suppliers/Service providers. The SIU has recommended that the
parties involved in alleged fraudulent activity.
Gauteng DoH and/or the NT place(s) the above entity and director on the
The NT maintains a database/list of restricted
database/list of restricted suppliers, after having followed the required
suppliers in terms of Regulation 16A9.1(c) of
administrative process.
the Treasury Regulations issued in terms of the
PFMA.
Fraud.
Evidence was referred to the GAU DoH, with a courtesy copy to the NT,
in respect of 1 entity and its Director. The referral is a motivation for
government should not be a party to contracts
them to be placed on the NT Central Database/List of Restricted
involving fraud and should not contract with
GAU DoH 2 10/02/2021 Suppliers/Service providers. The SIU has recommended that the
parties involved in alleged fraudulent activity.
Gauteng DoH and/or the NT place(s) the above entity and director on the
The NT maintains a database/list of restricted
database/list of restricted suppliers, after having followed the required
suppliers in terms of Regulation 16A9.1(c) of
the Treasury Regulations issued in terms of the
PFMA.
70
DATED 2/06/2021
No of
referrals
Fraud.
Evidence was referred to the Gauteng DoH, with a courtesy
copy to the NT, in respect of 2 entities and its Directors. The
referral is a motivation for them to be placed on the NT Central
government should not be a party to contracts involving
Database/List of Restricted Suppliers/Service providers. The
GAU DoH 7 24/02/2021 fraud and should not contract with parties involved in
SIU has recommended that the Gauteng DoH and/or the NT
alleged fraudulent activity. The NT maintains a
place(s) the above entity and director on the database/list of
database/list of restricted suppliers in terms of
restricted suppliers, after having followed the required
Regulation 16A9.1(c) of the Treasury Regulations issued
in terms of the PFMA.
A manufacturer, distributor (including importer and/or
exporter) or wholesaler, as referred to in Section
22C(1)(b) of the Medicines and Related Substances Act,
1965 (Act No. 101 of 1965) (“the Medicines Act”) must
prior to commencing business, apply to SAHPRA for a
license to manufacture or distribute medical devices.
Medical devices, in terms of the Medicines Act, include
any instrument, apparatus, implement, machine, material
30/03/2021
or other similar or related article intended by the
11/03/2021 The SIU has been informed that the matters are under
GAU DoH 10 manufacturer to be used, alone or in combination, for
12/02/2021 consideration by SAHPRA.
humans or animals, for (inter alia) the diagnosis,
24/11/2020
prevention, monitoring, treatment or alleviation of
disease or for disinfection of medical devices. The listed
companies were not registered with, and licensed by the
SAHPRA to distribute medical devices, in circumstances
where one or more of the PPE that was/were distributed
by the companies to the Gauteng DoH would qualify as
medical device(s).
71
DATED 2/06/2021
No of
referrals
The Commissioner has confirmed receipt of the
City of Johannesburg / In terms of section 8(1) of the Competition Act 89 of 1998
referrals and they are attending to them. The matter
Johannesburg property 4 01/04/2021 (“the Competition Act”) a dominant firm may not charge an
is still under consideration by the Competition
Company JPC excessive price to the detriment of consumers or customers.
Commissioner.
In terms of section 8(1) of the Competition Act 89 of 1998
The Commissioner has confirmed receipt of the
SANDF 2 25/03/2021 (“the Competition Act”) a dominant firm may not charge an
referrals and they are attending to them.
excessive price to the detriment of consumers or customers.
Contravention of section 22 (C) (6) of the Medicines and
Affidavits received from Adv of SAHPRA which are
Ethekwini Metropolitan Related Substances Act of 1965 as amended by Amendment
7 24/03/2021 being reviewed. NPA Referrals being drafted for
Municipality Act of 2008 (Act No.72 of 2008) in that entities must be
submission to NPA.
registered with SAHPRA.
Affidavits received from Adv of SAHPRA which are
KwaDukuza Local Related Substances Act of 1965 as amended by Amendment
2 24/03/2021 being reviewed. NPA Referrals being drafted for
Municipality Act of 2008 (Act No.72 of 2008) in that entities must be
submission to NPA.
The SIU has recommended that the Housing
Development Agency requests NT to place the
above entity and director on the database after
LIM CoGHSTA 2 27/01/2021 Fraud
having followed the required administrative process.
The matter has been escalated by the Housing
Development Agency to NT for consideration.
SAHPRA has referred these matters to the Hawks
Related Substances Act of 1965 as amended by Amendment
LIM DoH 31 10/03/2021 for further investigation. The investigation is still
Act of 2008 (Act No.72 of 2008) in that entities must be
ongoing.
Total 87
Grand Total 196
72
RAND VALUE OF NEW POTENTIAL CASH AND/OR ASSETS
TO BE RECOVERED SINCE LAST REPORT AT 2 JUNE 2021
Rand value of potential cash and/or assets to be recovered since last report at 2 June 2021
State Institution Description Value Date Achieved
ECP DoE 1 AoD was signed against a service provider for PPE that was never delivered. R98,415 30/04/2021
The SIU obtained orders in the Special Tribunal to freeze the bank accounts of service 01/06/2021
GAU DoE R65,698,231
providers appointed by the Department to sanitize schools. 17/05/2021
1 AoD was signed as a result of irregularities in the service providers BBEEE certification.
KZN DoE The service providers conceded to paying the profits. The AoD has since been repaid in R41,559 29/04/2021
full.
1 AoD was signed because the service providers overcharged for PPE that was procured.
MPU DSD The investigation revealed there was a difference between what was supposed to be R59,735 06/05/2021
charged and what they actually charged.
Total R65,897,940
This is the rand value in cash and/or assets that is potentially recoverable. Acknowledgement of Debt documents (AoDs)
are signed and the debtor agrees to repay the money in one lump sum or repays the money in month instalments until the
debt is fully repaid. The SIU also makes recommendations to State institutions to withhold payments to service providers
(usually where irregularities have been uncovered by the investigations and pending civil proceedings in the ST or the High
Court).
73
RAND VALUE OF POTENTIAL CASH AND/OR ASSETS TO
BE RECOVERED AT PREVIOUS BRIEFING DATED 2/06/2021
Rand value of potential cash and/or assets to be recovered reported at 2 June 2021
The matter was heard in the ST and the ECP DoH was interdicted from making any
payments to the supplier and from accepting delivery of any goods from the supplier,
ECP DoH R10,148,750 18/09/2020
pending the finalization of the review proceedings to challenge the validity of the award and
the resulting contract.
The SIU successfully applied to the ST to have the bank accounts of the first four
ECP DoE R2,785,276 30/10/2020
respondents frozen and to interdict the ECP DoE from making any further payments.
A recommendation was made to withhold payment to service providers who had received
contracts to provide surgical gowns. The SIU has since instituted proceedings in the ST to
FSP Provincial Treasury R39,150,739 07/10/2020
interdict and restrain the Provincial Treasury from making any further payments to the
service providers, and to review and set aside the contracts that were awarded.
22/12/2020
16/11/2020
Recommendations were made to withhold payments to 6 service providers. The
12/11/2020
GAU DoH Department have confirmed that no further payments will be made pending the finalization R175,628,315
23/09/2020
of the SIU investigations and civil proceedings.
16/09/2020
04/09/2020
The Special Tribunal granted and order to freeze funds in the bank accounts of 39 service
GAU DoH R26,999,390 20/08/2020
providers
1 AoD was signed. The service provider was contracted to supply surgical masks and the
GAU DoH value of the contract is R7 256 606. The AOD was signed because of an overpayment in R247,500 15/10/2020
respect of Vat that was made on one invoice submitted
A recommendation was made to withhold payments to three service providers pending the
City of Johannesburg R65,929,505 29/03/2021
institution of civil proceedings.
A recommendation was made to withhold payments to various service providers pending

City of Tshwane Municipality R19,793,897 23/09/2020
the institution and finalisation of civil proceedings.
18/01/2021
5 AoDs were signed for the under-delivery of goods supplied and for overcharging the 04/12/2020
KZN DoE Department for VAT. 1 AoD at a value of R176 191 is being repaid in monthly installments R2,458,626 16/10/2020
and to date R154 167 has been repaid. 4 AoDs have been repaid in full. 09/10/2020
23/09/2020
74
2 AoDs were signed for the overpricing of PPE items supplied which were above NT
KZN DoE R3,426,240 25/03/2021
regulated prices. The AoDs have been repaid in full
1 AoD was signed as a result of irregularities in the service providers BBEEE certification.
KZN DoE R89,900 31/03/2021
The service provider conceded to paying the profits. The AoD has been repaid in full.
Recommendation was made to withhold payment to 1 service provider. The Department
KZN DSD have confirmed that no further payments will be made pending the conclusion of the R2,040,000 25/09/2020
litigation process that the SIU has instituted
1 AoD was signed for charging the Department VAT while they were not registered as VAT
KZN DSD vendors. The service provider is paying the AoD in monthly installments and to date R276,450 20/10/2020
R11,020 has been paid
A recommendation was made to withhold payment to a contractors. The Department have
LIM CoGHSTA confirmed that no further payments will be made pending the conclusion of the SIU R12,814,563 23/11/2020
investigation.
A recommendation was made to withhold payment to contractors appointed for
MPU DoE maintenance projects for various schools. The Department have confirmed that no further R14,823,019 29/09/2020
payments will be made pending the conclusion of the SIU investigation.
1 AoDs were signed because the investigation revealed the service provider inflated the
price of stationery that was procured with the PPE. The AoD signed was for the difference
MPU DoH R24,800 13/10/2020
they were supposed to charge and what they actually charged. The AoD has been repaid in
full.
2 AoDs were signed based on the fact that the investigation revealed the service providers
inflated the price of stationery that was procured with the PPE. The AoDs signed were for 12/10/2020
MPU DoH R150,800
the difference they were supposed to charge and what they actually charged. Both these 09/10/2020
AoDs have been repaid in full
1 AoD was signed because the service providers inflated the price of the PPE that was
procured. The AoD signed was based on the fact that the investigation revealed there was a
MPU DSD R76,090 27/10/2020
difference between what was supposed to be charged and what they actually charged. The
debtor is making monthly repayments.
75
13/11/2020
8 AoDs were signed because the investigation revealed that the service providers provided
Govan Mbeki Local Municipality R102,120 12/11/2020
goods and/or services to the Municipality for a price more than what was regulated by NT.
11/11/2020
19/03/2021
04/11/2020
5 AoDs were signed because the investigation revealed the service providers were paid
23/10/2020
NW DoH VAT by the Department but were not registered VAT vendors. 2 AoDs to the value of R19 R1,044,848
22/10/2020
592 have been repaid in full.
21/10/2020
19/10/2020
2 AoDs were signed based on the fact that the investigation revealed the service providers
NW DoH were paid VAT by the Department but were not registered VAT vendors. Both these AoDs R19,592 28/09/2020
have been repaid in full
One AoD was signed because the investigation revealed the service provider has quoted
and charged the Department for face masks at inflated prices. The value of the AOD is the
NWP DoE R45,300 09/11/2020
excess portion that the service provider charged in comparison to the guideline pricing
included in National Treasury Instruction 05 of 2020/21.
A recommendation was made to withhold payment to 1 service provider. The Municipality
Matzikama Local Municipality have confirmed that no further payments will be made pending the finalization of the SIU R80,000 08/09/2020
investigations
Total R378,155,720
76
RAND VALUE OF NEW ACTUAL CASH AND/OR ASSETS
RECOVERED SINCE LAST REPORT AT 2 JUNE 2021
Rand value of actual cash and/or assets recovered since last report at 2 June 2021
KZN DoE Repayment made in respect of AoDs signed R2,442,526 31/03/2021
KZN DSD Repayment made in respect of AoDs signed R1,072,810 31/03/2021
MPU DoH Repayment made in respect of AoDs signed R10,000 31/03/2021
Govan Mbeki Local Municipality Repayment made in respect of AoDs signed R700 31/03/2021
NWP DoH Repayment made in respect of AoDs signed R1,900 31/03/2021
Total R3,527,936
77
RAND VALUE OF ACTUAL CASH AND/OR ASSETS
RECOVERED AT PREVIOUS BRIEFING DATED 2/06/2021
Rand value of actual cash and/or assets recovered reported at 2 June 2021
The ST confirmed the interim order that was granted against 20 respondents and
GAU DoH R7,401,705 04/02/2021
declared that the funds held in their bank accounts be declared forfeit to the State
The ST confirmed the interim order that was granted against 4 respondents and declared
GAU DoH R16,661,065 10/12/2020
that the funds held in their bank accounts be declared forfeit to the State
GAU DoH Repayment made in respect of AoDs signed R247,500 15/10/2020

22/02/2021
KZN DoE Repayments made in respect of AoDs signed R2,326,483
30/09/2020
31/12/2020
KZN DSD Repayments made in respect of AoDs signed R11,020
30/11/2020
Applications were lodged in the ST seeking a declaration of invalidity in respect of the
award of contracts and a just and equitable remedy in respect of the losses suffered by
KZN DSD R718,550 29/01/2021
the Department. Zain Brothers agreed to repay the profit derived from the contract they
received and a settlement agreement was signed with the KZN DSD.
Applications were lodged in the ST seeking a declaration of invalidity in respect of the

award of contracts and a just and equitable remedy in respect of the losses suffered by
KZN DSD R864,000 29/01/2021
the Department. Rosette Investments agreed to repay the profit derived from the contract
they received and a settlement agreement was signed with the KZN DSD.
MPU DoH Repayments made in respect of AoDs signed R175,600 13/10/2020
NW DoH Repayments made in respect of AoDs signed R19,592 28/09/2020

Total R28,425,515
78
RAND VALUE OF NEW POTENTIAL LOSS PREVENTED
(ACTUAL SAVINGS) SINCE LAST REPORT AT 2 JUNE 2021
Rand value of new potential loss prevented (actual savings) since last report at 2 June 2021
The ST reviewed and set aside the contract that was awarded to a service provider. The
OR Tambo District Municipality court ruled that all the tax invoices that were issued were invalid and should not be paid R4,857,600 21/04/2021
by the Municipality to the service provider.
Total R4,857,600
79
RAND VALUE OF POTENTIAL LOSS PREVENTED (ACTUAL
SAVINGS) AT PREVIOUS BRIEFING DATED 2/06/2021
Rand value of potential loss prevented (actual savings) reported at 2 June 2021
The SIU recommended to the Gauteng DoH that they reduce the value of two outstanding
invoices that were due to Botshelocla (Pty) Ltd, because they had overcharged the
GAU DoH R90,000 18/12/2020
Gauteng DoH. The Gauteng DoH confirmed that they had implemented our
recommendation.
The SIU recommended to the Gauteng DoH that they make no payments to Prime
Reason because the investigation found that their appointment was irregular or invalid in
GAU DoH terms of Section 2 of the Constitution; Section 217(1) 45(a) 57(a) of the PFMA; Section R300,000 15/02/2021
45(b) 57(b) of PFMA; Section 76 of PFMA and paragraphs 14 & 17 of the SCM Policies.
The Gauteng DoH has confirmed that they have recalled all payments.
The ST reviewed and set aside the contract that was awarded to Ledla Structural
Development (Pty) Ltd. The value of the contract was R139 million. At the time of the
GAU DoH R99,241,842 10/12/2020
award approximately R100 million had not been paid to Ledla. The SIU is waiting to
obtain the actual payment information from the Gauteng DoH.
Total R99,631,842
80
RAND VALUE OF NEW CONTRACTS SET ASIDE SINCE
LAST REPORT AT 2 JUNE 2021
Rand value of new contracts set aside since last report at 2 June 2021
ECP DoH The ST reviewed and set aside the contract that was awarded to a service provider. R10,148,175 28/05/2021
The ST reviewed and set aside the contract that was awarded to a service provider. The
OR Tambo District Municipality court ruled that all the tax invoices that were issued were invalid and should not be paid R4,857,600 21/04/2021
by the Municipality to the service provider.
KZN DSD The ST reviewed and set aside the contract that was awarded to a service provider. R4,800,000 15/03/2021
Total R31,412,775
81
RAND VALUE OF CONTRACTS SET ASIDE AT PREVIOUS
BRIEFING DATED 10/02/2021
Rand value of contracts set aside reported at 2 June 2021

The ST reviewed and set aside the contract that was awarded to Ledla Structural
Gauteng DoH R139,000, 000 10/12/2020
Development (Pty) Ltd.
Total R139,000,000
82
NEW MATTERS FINALISED SINCE PREVIOUS
REQUEST TO BRIEF SCOPA ON COVID-19
REPORTS DATED 2/06/2021
83
SUMMARY OF PROGRESS AT 30/06/2021
Summary of progress
Percentage of matters under
Contracts' investigation status No of service providers investigation by number of
contracts
Finalised 988 1,290 R6,986,605,970 30%
Ongoing 1,127 2,673 R7,109,528,400 62.1%
Investigation to still commence 306 339 R746,675,671 7.9%
Total 2,421 4,302 R14,842,810,041 100%
Finalised matters
Percentage of finalised matters
Irregularity No of service providers under investigation by number
of contracts
No irregularity 647 795 R3,907,767,395 62%
Irregularity identified 341 495 R3,078,838,574 38%
Total 988 1,290 R6,986,605,970 100%
84
NATIONAL DEPARTMENT OF HEALTH: DIGITAL
VIBES CONTRACT INVESTIGATION
85
BACKGROUND
• On 23 February 2021, a whistle blower reported various allegations to the Siu relating to a R150 million
contract, allegedly irregularly awarded by the National Department of Health (“NDoH”) to a company
known as Digital Vibes (Pty) Ltd (“Digital Vibes”).
86
INVESTIGATION APPROACH
• Review compliance with the prescribed legislation.
• Identify irregular and/or unlawful conduct on the part of the NDoH, its officials and/or third parties.
• Identify and quantify losses suffered by the NDoH and to facilitate the recovery of such losses.
• Collect admissible evidence:
o To approach the Special Tribunal in order to review and set aside the appointment of Digital Vibes in
respect of the National Health Insurance (“NHI”) and Covid-19 media awareness campaigns.
o For criminal, civil, disciplinary and/or executive proceedings against identified individuals/entities.
• Identify weaknesses in the NDoH systems and process and provide recommendations for improvement.
• Prepare a final report for submission to the President.
87
PROCEDURES PERFORMED
• Obtained and reviewed all available SCM documentation relating to NHI and Covid-19 procurement processes
from NDoH.
• Interviewed the following individuals:
o NDoH staff members involved in procurement processes
o Suppliers invited to participate in NHI tender process
o Government Communication and Information System (GCIS) officials
o Witnesses relevant to possible corrupt payments and/or transactions
• Analysed the Bank account of Digital Vibes.
• Served Section 5(2)(a) notices to all companies that received material payments from Digital Vibes.
• Served Section 5(2)(b) Notices on various banks to obtain bank records of beneficiaries.
• Served Section 5(2) (b) and (c) Notices on several members.
• Performed company, director, property and vehicle searches on all potentially implicated entities and individuals.
• Briefed Senior Counsel for purposes of obtaining a preservation order and other potential civil litigation processes.
88
NHI SCM PROCEDURES PROCESS
• NDOH initially attempted to employee Ms. Mather as a contractor for the NHI communication.
• On 12 July 2019 – National Treasury was requested to approve a deviation from the normal procurement
processes to appoint Digital Vibes.
• On 26 July 2019 – National Treasury was requested to approve a deviation from normal procurement processes
to appoint Digital Vibes. A “turnkey costing” for 12 months was attached for R133 million.
• On 30 July 2019 – National Treasury declined the request siting that NDoH should advertise a tender for a
shortened period of 14 days.
• Subsequent to the above, a meeting was held between NDoH and National Treasury. It was agreed that a
minimum of 10 suppliers should be invited from the CSD database. It was agreed that Digital Vibes will be part of
the 10 suppliers invited to submit bid proposals.
• On 5 September 2019 – NDoH submitted a letter to National Treasury with the names of 10 potential suppliers.
• On 17 September 2019 NT responded to NDoH saying that they are not sure whether the 10 suppliers that were
identified by NDoH were the only service providers able to do the required communication work.
• On 25 September 2019 - Tender proposal was emailed to 10 suppliers with a closing date of 14 October 2019.
• On 14 October 2019 – Only two companies submitted bid proposals (Digital Vibes and one other bidder).
89
• On 24 October 2019 the NDoH submitted a second RFP and informed all 10 suppliers that the “functionality
evaluation criteria” was not included in the first RFP. Companies were required to collect their bid documents and
to resubmit on/or before 30 October 2019 (the second RFP did not provide for the 14 day mandatory submission
period).
• One of the bidders informed the SIU that they were concerned that their first bid proposal was opened when they
collected it from the NDoH.
• On 30 October 2019 again only 2 bidders submitted bid proposals.
• Subsequent to the above, a meeting was held between NDOH and National Treasury. It was agreed that a
minimum of 10 suppliers should be invited from the CSD database. It was agreed that Digital Vibes will be part of
the 10 suppliers invited to submit bid proposals.
• Bid Evaluation Committee (“BEC”) scoring
o Digital Vibes was awarded a score of a 100% by all BEC members for each evaluation criteria,
despite the fact that they only had one year experience. Therefore, they should have been awarded a
score of “3” out of “5”. This process was irregular.
o On the other hand, the 2nd bidder had more than 5 years of experience but only received a score of “3”
out of “5” for “experience”, with the exception of one BEC member awarding them a score of “4” out of
“5” instead of received a “5 out of 5” score.
90
o The SIU determined from the table in the TEC report containing the combined scores of all the BEC
members, that one BEC member’s score was altered for the 2nd bidder from a “3” to “2”, which
resulted in an overall scoring of the 2nd bidder being 59.2%. If the score was not changed, the 2nd
bidder would have qualified for functionality.
o The end result was that 2nd bidder failed to meet the required 60% for functionality, disqualifying them
from advancing through to the next stage of the tender process.
o Digital Vibes quoted R141 million and the 2nd bidder quoted R69 million. It should be noted that Digital
Vibes was R72 million (104%) more expensive than the 2nd bidder.
91
COVID-19 SCM PROCEDURES PROCESS
• On 6 March 2020 - Covid-19 goods and services were requested by Acting DG via his private yahoo email
address to Ms. Mather (who was only a consultant for Digital Vibes).
• On 6 March 2020 – quotation from Digital Vibes of R35 million approved by Acting DG via his private
yahoo email address without following any SCM processes.
• Items in the quotation differed from items requested by the Acting DG.
• On 12 March 2020 - Quotations requested from other suppliers for similar services. Four additional service
providers were appointed by NDOH to perform similar services than what Digital Vibes was contracted for
at a cost of approximately R5 million.
• The National State of Disaster was only declared on 15 March 2020. Therefore, the quotation was
requested prior to a disaster being declared by government.
• There was no agreement between NDoH and Digital Vibes for the Covid-19 communication.
• There was no SCM process followed for the above.
92
BUDGET FOR DIGITAL VIBES: R132 MILLION APPROVED
BY THE MINISTER OF HEALTH
• Minister of Health approved two budget applications for Digital Vibes for the NHI communication:
o On 20 January 2020 – R46 939 550
 Approved 52 days after Digital Vibes SLA was signed on 29 November 2019.
o On 16 June 2020 – R85 502 500
 For NHI communication work (from 6 March 2020, Digital Vibes only delivered Covid-19
communication services).
 Approved 199 days after Digital Vibes SLA was signed on 29 November 2019.
93
DIGITAL VIBES POTENTIAL IRREGULAR PAYMENTS
94
CIVIL LITIGATION: PRESERVATION ORDER
• The SIU has identified R22 million contained in several bank accounts resulting from cash flows from the
Digital Vibes Nedbank account.
• A Preservation Order was granted to the SIU by the Special Tribunal on 17 June 2021 based on the SIU’s
findings.
• The SIU submitted and filed its Review Application on 29 July 2021 to set aside the contract and to recover
the full value paid out on the contract
95
NUMBER OF REFERRALS FOR DISCIPLINARY ACTION
AGAINST OFFICIALS
Number of referrals for disciplinary action against officials
No of referrals Date referred Level of Official Charges Progress to date
The NDoH and the Presidency

Non compliance in respect of are currently considering and
Senior management
the SCM processes and implementing the
7 07/07/2021 Middle management
Contravention of Section 34 of recommendations made by the
Junior Official
the PMFA SIU. NDoH are in a process to
to draft charges.
96
NUMBER OF REFERRALS TO THE RELEVANT
PROSECUTING AUTHORITY
Number of referrals made to the National Prosecuting Authority
No of referrals Date referred Level of Official Charges Progress to date
Senior management Criminal referrals submitted

Fraud
Middle management to the NPA/Hawks. Case
Corruption
19 08/07/2021 Junior Official has been registered under
Money Laundering
Private individuals Pretoria Central CAS
630/06/2021.
97
NUMBER OF REFERRALS MADE FOR EXECUTIVE ACTION
Number of referrals made for Executive Action
Progress to
No of referrals Date referred Level of Official Charges
date
 Failed to execute his function in compliance
with the Constitution, general oversight
responsibilities in respect of the affairs of
the National Department of Health and his
obligations in terms of Section 63 of the
PFMA;
 Causing irregular and fruitless and wasteful

expenditure to be incurred; The Minister
has since
1 07/07/2021 Former Minister
 May have committed actions of criminality; resigned.
 Possible conflicts of interest in the

appointment of Digital Vibes;
 May have been negligent when approving

budgets in respect of the NHI and the
Covid-19 media campaigns; and
 May have acted contrary to a relevant

Cabinet Decision.
98
NUMBER OF REFERRALS MADE FOR ADMINISTRATIVE
ACTION (WHICH INCLUDES BLACKLISTING)
Number of referrals made for Administrative Action (which includes Blacklisting)
No of referrals Date referred Charges Progress to date
Non-performance
Fraud The NDoH is currently considering
1 08/07/2021
Corruption the referral
Money Laundering
99
RAND VALUE OF ACTUAL CASH AND/OR ASSETS
RECOVERED
Rand value of actual cash and/or assets recovered
Description Value Date Achieved
Payments received for the work not performed R11,542,710 26/08/2021
100
NEW MATTERS FINALISED AS PER THE 5TH
PROGRESS REPORT
101
GAUTENG PROVINCE
• GAU Department of Health: The SIU received allegations in respect of the irregular procurement of and
contracting for the supply of:
o 500 000 cloth face masks – R10 499 050. No irregularities identified.
o Cloth masks – R2 346 000. No irregularities identified.
o Cloth masks – R2 480 000. No irregularities identified.
o Boot covers – R195 000. No irregularities identified.
o Printing paper – R60 000. No irregularities identified.
o Catering services – R109 500 (2 x contracts). No irregularities identified
o Surface sanitizers – R1 250 004. No irregularities identified
o Catering services – R50 000. No competitive bidding or other SCM process was followed, however
the services were rendered and there was value for money.
o 500 000 cloth face masks – R12 000 000 - No irregularities in the SCM process but the matter was
referred to the Competition Commission for excessive pricing.
102
GAUTENG PROVINCE
o 2500 000 face masks – R6 125 000 - No irregularities in the SCM process but the matter was referred
to the Competition Commission for excessive pricing.
o 10 000 Thermometers – R15 750 000. No irregularities in the SCM process but the matter was
referred to SAHPRA because the service provider was not registered as a supplier of medical devices.
o 5 000 Patient identity cards – R87 697 000. No irregularities identified in the SCM process however
the cards were never delivered and no payment was made. A recommendation was made to cancel
the Purchase Order.
o 24 400 FFP2 masks – R1 959 170. No SCM process was followed and the award of the contract was
irregular.
103
NATIONAL DEPARTMENTS
• South African National Defence Force: The SIU received an allegation relating to irregular SCM
processes and possible collusion. 5 service providers were awarded contracts to the value of R275
million. The SIU investigation found that the relevant SCM policies and National Treasury prescripts were
not followed which render the SCM process irregular. There was also excessive pricing in respect of the
masks and gloves that were procured.
• National Department of Employment and Labour: The SIU received the allegation which was based on
an AGSA report which included irregularities in respect of Covid-19 Relief Funds. 5 contracts were
awarded to the value of R6.1 million. The SIU investigation found that no SCM processes were followed.
• National Department of Correctional Services: The SIU received an allegation that an official had
awarded PPE contracts to friends and family. The total value of the alleged contracts awarded to 25
companies was R53.2 million. The investigations into 15 of the companies have been finalised. The SIU
investigation found that the SCM process was irregular and there was possible collusion between the
official and some of the service providers.
104
EASTERN CAPE PROVINCE
• Department of Public Works and Infrastructure:
o The SIU received an allegation in respect of a tender for the supply, delivery and installation of
temporary structures at the Mt Ayliff and Taylor Bequest Hospitals. The SIU investigation found no
irregularities with the SCM processes.
o The SIU received an allegation in respect of a tender for repairs and renovations at the Joubertina
Hospital. The SIU investigation found no irregularities with the SCM processes.
o The SIU received an allegation in respect of 4 contracts to the value of R 419 075 that were awarded
for decontamination services. The SIU investigation found no irregularities with the SCM processes.
• Department of Health: The SIU received allegations that the Department had awarded tenders without
following the correct SCM processes. There were also allegations that some of the tenders were awarded
to families of the officials at the Department. The SIU investigation into 12 service providers found no
evidence to support the allegations made.
105
EASTERN CAPE PROVINCE
• Department of Education:
o The SIU received an allegation that a service provider that was employed by the Department did not
declare his interests in the company. The SIU investigation found that the service provider has
declared his interest in the business in all the tender documents that were submitted.
o The SIU received an allegation that 2 service providers did not supply all the PPE to the schools as
per the delivery notes and the invoices that were submitted to the Department. Payments to the value
of R4 194 855 were made to both service providers. The SIU investigation found that the service
providers had not delivered all the items as shown on the invoices and the delivery notes. One service
provider did sign an AOD to the value of R98 415 which is the amount that was overpaid by the
Department. Civil proceedings are being considered against the other service provider to recover the
overpayment.
106
FREE STATE PROVINCE
• Dihlabeng Local Municipality: The SIU received an allegation that contractors were appointed to perform
work at pump stations in Fouriesburg. It was alleged that the tender process was bypassed because of the
Covid-19 pandemic and that the work done was substandard. The value of the contracts awarded was
alleged to be R9 708 051. The matter was closed because it does not fall within the ambit of the
proclamation.
107
KWAZULU-NATAL PROVINCE
• eThekwini Metropolitan Municipality: The SIU received an allegation that the Municipality had provided
catering for the homeless between March 2020 and July 2020. The contracts were awarded without
complying with the NT benchmark rates which resulted in the Municipality paying more for the services
than they should have. 153 contracts to the value of R60.6 million have been finalised. The SIU
investigation found that some of the contracts had been cancelled or orders had not been issued to the
service providers, and no payments had been made by the Municipality. The SIU investigation also found
that the prices for those service providers that were awarded contracts were within the National Treasury
rates. Some of the service providers were required to be registered with SAHPRA and referrals were
made for further action.
108
LIMPOPO PROVINCE
• Department of Health: The SIU was requested by the former Premier to investigate contracts awarded to
service providers in various Departments.
o A service provider was awarded a contract to supply and deliver 150 000 gloves to the value of R1
million. The SIU investigation found that the award was invalid because the service provider’s tax
status on the Central Supplier Database (CSD) was not compliant. The gloves were however never
delivered to the Department and no payment was made.
o A service provider was awarded a contract to supply and deliver 10 000 gloves and was paid an
amount of R269 997. The SIU investigation found that the award was unlawful because an error was
made during the SCM process and the service provider’s price was not the cheapest.
o A service provider received an allegation that a service provider was awarded a contract to supply and
deliver surgical gloves to the value of R993 600. The SIU investigation found that gloves were never
delivered to the Department and no payment was made to the service provider.
109
MPUMULANGA PROVINCE
• Department of Agriculture, Rural Development, Land and Environment: The SIU received allegations
relating to the provision and delivery of food supplies for a period of 5 years. The value of the 2 contracts
awarded was R32 232 400. The SIU investigation found there was no competitive bidding process and the
market was never tested for price comparisons.
• Department of Culture, Sports and Recreation: The SIU received allegations that the Department had
procured hand sanitizer at inflated prices. 2 contracts were awarded to the value of R763 799. The SIU
investigation found that SCM process was irregular and that additional quotations that had been submitted
appeared to have been falsified for the purposes of cover quoting.
• Department of Social Development:
o The SIU received an allegation that the Department had procured PPE at inflated prices and/or there
was no SCM process followed. The service provider was awarded a contract to the value of R169
824. The SIU investigation found no irregularities in respect of the SCM process.
110
MPUMULANGA PROVINCE
• Department of Social Development:
o The SIU received an allegation that the Department had awarded a contract for the supply of catering
services at inflated prices and/or there was no SCM process followed. The service provider was
awarded a contract to the value of R6.6 million. The SIU investigation found there was fruitless and
wasteful expenditure to the value of R1 386 633.
o The SIU received an allegation that the Department had awarded a contract for the supply of catering
and laundry services at inflated prices and/or there was no SCM process followed. The service
provider was awarded a contract to the value of R194 087. The SIU investigation found there was
fruitless and wasteful expenditure to the value of R194 087.
o The SIU received an allegation that the Department had procured PPE at inflated prices and/or there
was no SCM process followed. 2 service providers were awarded contracts to the value of R1 3
million. The SIU investigation found that the service providers had overcharged the Department for the
PPE. 1 service provider signed an AoD to the value of R59 734 which was the amount that was
overpaid by the Department. Civil proceedings are being considered against the other service provider
to recover the overpayment.
111
MPUMULANGA PROVINCE
• Department of Health: The SIU conducted a desktop analysis to identify any discrepancies relating to the
expenditure of PPE related goods and services. The Mpumalanga Provincial Treasury Covid-19
Procurement Disclosure Report was used as the source document.
o A contract was awarded to the value of R14 377 488. The SIU investigation found that the SCM
process was irregular because only 1 quotation was obtained. The goods were delivered before the
purchase order was issued and documents had to be backdated. The SCM process was not
competitive and in line with National Treasury guidelines.
o A contract was awarded to the value of R140 540 741. The SIU investigation found that the SCM
process was irregular because only 1 quotation was obtained. The SCM process was not competitive
and in line with National Treasury guidelines.
112
WESTERN CAPE PROVINCE
• Cederberg Local Municipality:
o The SIU received an allegation that there were irregularities with the procurement of sanitisers,
dispensers and liquid soap. 2 contracts were awarded to the value of R21 140. It was further alleged
that the service providers was a former employee and the spouse of a Senior Manager at the
Municipality. The SIU investigation found that the procurement process was irregular and unlawful in
terms of Section 217 of the Constitution because there was a potential conflict of interest when the
contract was awarded.
o The SIU received an allegation that there were irregularities with the procurement of loud hailing
services and Covid-19 awareness campaigns. The value of the contract was R28 980. The SIU
investigation found that the procurement process was irregular and unlawful in terms of Section 217 of
the Constitution because there was potential bid manipulation between a municipal official and the
service provider.
113
• Cederberg Local Municipality:
o The SIU received an allegation that there were irregularities with the procurement of PPE to the value
of R145 263. The SIU investigation found that the procurement process was irregular and unlawful in
terms of Section 217 of the Constitution.
o The SIU received an allegation that there were irregularities with the procurement of PPE to the value
of R334 000. The SIU investigation found that the service provider attempted to bribe a municipal
official. The hand sanitizer that was procured also did not contain 70% alcohol.
• Matzikama Local Municipality:
o The SIU received allegations relating to the procurement of PPE to the value of R400 027. The SIU
the Constitution because the service provider did not disclose his friendship with a municipal official.
114
• Matzikama Local Municipality:
o A search and seizure was conducted at the Municipality and the documents showed that a service
provider was appointed without following any competitive process. The contract was to provide
humanitarian relief to the poor and vulnerable to the value of R650 000. The SIU investigation found
that the procurement process was irregular and unlawful in terms of Section 217 of the Constitution
because the service provider did not disclose his friendship with a municipal official. The motion
proceedings will be heard when the opposing affidavit has been obtained from the 1st respondent.
o The SIU received an allegation that there were irregularities with the procurement of loud hailing
services and Covid-19 awareness campaigns. The value of the contracts was R68 480. The SIU
the Constitution because there the service provider did not submit the required municipal bidding
documents or any other documents.
115
ESTIMATED COSTS
• The high level estimated costs that are projected for additional resources that would be required for this
proclamation is set out below:
SIU: Consolidated additional resource requirements, including for the Covid-19

Investigations, Proclamation R23 of 2020
1 Cost of SIU resources, at the current recovery rates of the SIU R 170,604,752
2 Cost of +/- 33 additional resources on short term contract R 84,621,346
3 Cost of additional experts sourced through SCM, on SIU's panel of service providers R 20,529,640
4 Cost of additional professional services (Counsel and other) costs for Civil Litigation R 75,000,000
TOTAL ESTIMATED SIU COSTS FOR PROCLAMATION R23 OF 2020 R 350,755,737
• In the previous briefing the total estimate was +/- R341 million and this has now increased to +/- R351
million. This is still slightly down from the previous estimate of R386 million. An updated costing will be
provided as and when newer information is available.
• The main reason for the reduction of R35 million from the initial to the latest cost estimates is a reduced
projected cost for internal and contracted investigative resources, based on actual and projected costs
relating to time spent on the R23 investigations.
116
FINAL REPORT
• Most of the investigations in respect of R23 of 2020 will be finalised by 31 August 2021.
• The report will cover following:
o The background to the Proclamation that was issued;
o The approach that the SIU adopts in fulfilling its functions and discharging its responsibilities will be
outlined;
o The allegations that the SIU has been tasked to investigate;
o The investigations that have been finalised;
o The investigations that will still be ongoing after 31 August 2021;
o The steps that have been and are being taken to ensure that officials who are suspected of
misconduct are disciplined, that persons suspected of having committed criminal offences are
charged, and that civil recoveries are made from those who have benefitted unduly from invalid
actions or inadequate performance or culpably caused loss to the State;
o The limitations and observations that have arisen in this investigation.
• The final report in respect of these finalised investigations will be submitted to the President by 30
November 2021. 117
THANK YOU Follow
Hotline: 0800 037 774
Website: https://www.siu.org.za Us
E-mail: info@siu.org.za
@RSASIU
Hotline: 0800 037 774 | Website: https://www.siu.org.za | E-mail: info@siu.org.za

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PRESENTATION TO SCOPA

PROCLAMATION R23 OF 2020

Hotline: 0800 037 774 | Website: https://www.siu.org.za | E-mail: info@siu.org.za

• To provide for the establishment of

CIVIL LITIGATION DISCIPLINARY PROSECUTION REFERRAL TO

(NO NEW OBSERVATIONS COMPARED TO THE PREVIOUS

• Various officials of Provincial Government:

o merely rubber-stamped decision taken by; and/or

o accepted and gave effect to ‘unlawful’ instructions from,

• Companies awarded contracts were not registered on the CSD.

business, as set out in their CIPC and CSD records.

medical devices were not complied with in many instances.

• Political pressure played a role in the procurement of PPE.

resulted in overpayment for goods.

found under delivery of items or the receipt of incorrect items.

• Suppliers using front companies to obtain multiple contracts from a department.

• Cover quoting by officials and suppliers.

• Splitting of bids to meet the quotation and/or delegation threshold.

• PPE was packaged under a false/forged, cloned label.

• Witnesses provided false information to the SIU.

instead of Senior Management or Executive Authorities.

ECP NATIONAL DEPARTMENTS

The SIU established that the NHLS unlawfully and

The SIU launched a review application to set the

Total R857 600 529

Impact: ECP DoH interdicted from making payment

This matter relates to an investigation into the irregular

This matter relates to the procurement of PPE for the

 The 1st to 39th Respondents were prohibited from dealing

 The implementation of the contract between the GAU DoH

 The GAU DoH was interdicted from making any

The matter was heard on 20/11/2020 wherein judgement

On 10 December 2020 the matter was heard and the

The applications for leave of appeal by the Respondents were

Impact: Contract to the value of R139 million is set aside and

The GAU DoH irregularly concluded a contract with

On 19/05/2021, the SIU issued papers to apply for the

The SIU applied to the ST for restraint order to attach

The SIU brought an Application to freeze the pension of Mr Selemale,

Total R1 089 796 272

The Municipality was interdicted from making

Committed ‘financial misconduct’, as envisaged

Committed ‘financial misconduct’, as envisaged

Contravention of section 3(a) and (b)(i)(aa) and

The (03) officials are charged of Financial

Finacial Misconduct in terms of Section 171 (3) of

According to SA Express who employs the Manager,

The disciplinary proceedings have been finalised and

The SIU was informed that a disciplinary process was

Committed ‘financial misconduct’, as envisaged

The SIU has been informed that the official resigned

The City Manager’s office was contacted and they

MPU Department of Irregular procurement of PPE. Contravention of

Failed to follow SCM processes and prescripts

Grand Total 127

Grand Total 148

The MEC has since been discharged. On 23/10/2020,

A manufacturer, distributor (including importer and/or exporter)

Grand Total 196

A recommendation was made to withhold payments to various service providers pending

KZN DSD Repayment made in respect of AoDs signed R1,072,810 31/03/2021

MPU DoH Repayment made in respect of AoDs signed R10,000 31/03/2021

NWP DoH Repayment made in respect of AoDs signed R1,900 31/03/2021