SIU denies report on Digital Vibes

This is allegedly related to the R150 million COVID-19 and National Health Insurance communications tender that the company received which the SIU found to have been allegedly fraudulently and irregularly awarded.

The Special Investigating Unit (SIU) has denied a report that it has sent a letter to President Cyril Ramaphosa allegedly informing him about allegations that former Presidential spokesperson Khusela Diko received at least R1 million from controversial communications company Digital Vibes.

This is allegedly related to the R150 million COVID-19 and National Health Insurance communications tender that the company received which the SIU found to have been allegedly fraudulently and irregularly awarded.

“The…SIU noted the publication/tweet…regarding the ongoing SIU investigation into the allegations of procurement irregularities relating to Digital Vibes and in particular to the allegations relating to...Diko.

“The SIU would like to put it on record that we have not sent any letter or report to the President’s office, in relation to this matter, as alleged in the report. The report…is misleading the public as the investigation on this matter is ongoing and the SIU will submit the report to the President once the investigation is concluded,” the corruption busting unit said.

Since the uncovering of the alleged tender corruption related to the Digital Vibes contracts, several high ranking government officials – including former Health Minister, Dr Zwelini Mkhize – have either left the public service, been suspended or are under investigation by the departments they serve.

Transnet, SIU tender review application

Meanwhile, the review application involving the SIU and controversial locomotive supplier CRRC E-Loco Supply has been postponed in the Special Tribunal.

The application seeks a review of Transnet’s R25 billion tender contracts with CRRC E-Loco Supply to provide the rail service with locomotives between 2011 and 2014.

The firm was paid at least R4.2 billion through three contracts which are alleged to have been improperly won by CRRC E-Loco through the payment of kickbacks.

 “The date was initially set for Friday…however there were further Supplementary Affidavits which, in terms of Special Tribunal Rules, require that there be sufficient time to allow for the filing of pleadings. The heads of argument will be filed by the 15th December 2021.

“The matter will be ripe for hearing only in March 2022. The respondents to the main application are the Standard Bank of South Africa, Bank of China Limited, China Construction Bank, the SA Reserve Bank and the Commissioner of the SA Revenue Service,” the Special Tribunal said in a statement.

Earlier this year, the SIU was granted a preservation order on CRRC E-Loco Supply's bank accounts; preventing the firm from utilising any proceeds or assets garnered through the Transnet contracts.

(With Inputs from South African Government Press Release)