Special Tribunal Orders R21 Million Repayment Over Irregular PPE Contracts in KZN

The order follows an in-depth probe by the Special Investigating Unit (SIU), which was initiated after the provincial Treasury conducted its own investigation.

The Special Tribunal has ordered 16 service providers to return R21 million in unlawfully obtained profits linked to allegedly irregular Personal Protective Equipment (PPE) contracts awarded by the KwaZulu-Natal Department of Social Development (KZN DSD) during the peak of the COVID-19 pandemic.

The order follows an in-depth probe by the Special Investigating Unit (SIU), which was initiated after the provincial Treasury conducted its own investigation. The Treasury report confirmed that PPE was procured under 18 contracts with a total value of R21,242,955.95. It further recommended disciplinary measures against implicated officials and the registration of a criminal case.

According to the SIU, the initial Treasury investigation failed to assess potential financial recoveries or quantify losses incurred by the state. Furthermore, no attempt was made to recover funds lost due to inflated pricing or irregular procurement processes.

"The SIU found that all 16 service providers charged rates exceeding the pricing guidelines set by the National Treasury. As a result, the SIU initiated legal proceedings before the Special Tribunal to reclaim the overpaid amounts," the unit stated on Tuesday.

Beyond the financial recovery efforts, the SIU has committed to ensuring accountability through legal prosecution.

"In accordance with the Special Investigating Unit and Special Tribunals Act 74 of 1996, any criminal conduct identified during the investigation will be referred to the National Prosecuting Authority (NPA) for further action," the SIU confirmed.

Under the SIU Act, the unit is also empowered to launch civil actions in the High Court or Special Tribunal to address wrongdoing stemming from corruption, fraud, or maladministration. The tribunal's ruling marks a significant step in holding accountable those who profited unlawfully during the pandemic.