Court Dismisses Ndlovu Appeal in R158m PPE Corruption Case

The contract, awarded by the National Health Laboratory Service (NHLS) during the height of the pandemic, was declared unlawful in 2022, with the tribunal ordering Ndlovu to repay R158 million.

South Africa’s Special Investigating Unit (SIU) has welcomed a High Court ruling dismissing controversial businessman Hamilton Ndlovu’s bid to reinstate an appeal against a Special Tribunal order setting aside a R158 million COVID-19 Personal Protective Equipment (PPE) contract.

The contract, awarded by the National Health Laboratory Service (NHLS) during the height of the pandemic, was declared unlawful in 2022, with the tribunal ordering Ndlovu to repay R158 million.

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Appeal Rejected Over Missed Deadlines and Weak Justification

According to the SIU, the appeal had lapsed after Ndlovu failed to act within prescribed timelines. The court found that the explanation provided for the delays was “superficial, contradictory and dishonest.”

“The court confirmed that Mr Ndlovu and company had no prospects of success in overturning the Special Tribunal’s ruling,” the SIU said.

The judgment effectively reinforces the earlier decision that nullified the PPE contracts and ordered the recovery of funds.

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Fronting Companies and Emergency Procurement Exploited

The SIU’s investigation revealed that eight companies, directly and indirectly linked to Ndlovu, secured PPE contracts worth R172 million from the NHLS between March and April 2021.

Of that total amount:

• Only R13.8 million was used for actual PPE procurement

• Nearly 90% of the funds were allegedly diverted

The SIU stated that funds were channelled to Ndlovu and his family for luxury purchases, including vehicles, properties and investments, rather than for supplying protective equipment during the public health emergency.

Evidence presented in court showed that multiple fronting companies were used to exploit emergency procurement processes during the COVID-19 crisis.

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R158 Million Ordered to Be Repaid

In 2022, the Special Tribunal declared the contracts unlawful and set them aside, ordering Ndlovu to repay R158 million to the NHLS.

The High Court’s latest decision strengthens ongoing civil efforts by the SIU and the NHLS to recover assets obtained through irregular procurement.

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SIU’s COVID-19 Mandate

The SIU is acting under Proclamation R.23 of 2020, issued by President Cyril Ramaphosa, which empowered the unit to investigate corruption, maladministration and irregularities in the procurement of goods and services by state institutions during the COVID-19 pandemic.

The case forms part of a broader national effort to reclaim public funds misappropriated during emergency procurement processes.

With the dismissal of the appeal, the path is now clearer for the state to continue recovering the unlawfully obtained funds and hold those responsible accountable.