R52.6m in assets seized in alleged PPE corruption case in Mpumalanga
According to the press release, the investigation revealed that senior management officials of the Department of Public Works, Roads and Transport had awarded multimillion rand Covid-19 PPE tenders to suppliers who never delivered these services.
The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU), the Special Investigating Unit (SIU) and the Hawks have seized various assets and properties in Mbombela valued at approximately R52.6m, linked to 22 senior management officials, service providers and entities involved in an alleged corruption network within the Mpumalanga Department of Public Works, Roads and Transport.
This is according to a joint media statement released by the Mpumalanga spokesperson for the NPA, Monica Nyuswa, on Tuesday July 23.
The statement said this seizure follows a preservation court order from the High Court of South Africa and that of the Mpumalanga Division and Mbombela, obtained by the AFU.
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The order allows the AFU, SIU and the Hawks to seize various assets in Mpumalanga, Gauteng, North West and Western Cape associated with personal protective equipment (PPE) corruption. The operation included serving orders at 34 locations and capturing inventories of 29 properties, 31 vehicles and a boat trailer.
The court order freezes properties such as houses, electronics, cars, household items, jewellery, arms, ammunition, bank accounts, salaries and bail monies. All internet banking privileges will be removed from the accused as of Tuesday. The seized assets and frozen properties belong to employees of the department, while others belong to service providers doing business with the department.
The order is based on Section 26 of the Prevention of Organised Crime Act 121 of 1998, which prevents a person from dissipating their assets before a confiscation order is made following a conviction.
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“The SIU’s investigation into PPE contracts related to the Covid-19 pandemic revealed that senior management officials awarded multimillion rand Covid-19 PPE tenders to suppliers who did not deliver the services. These suppliers paid substantial kickbacks to the senior management officials and their family members in different ways. The investigation uncovered multiple instances of corruption, fraud, theft and money laundering committed by senior managers and service providers involved in procuring PPE disinfection services during the Covid-19 period,” the statement said.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU referred criminal evidence to the NPA and Hawks for further investigation, leading to the arrest of department officials and service providers. The officials and service providers now face criminal charges related to PPE procurement and will appear in the Specialised Commercial Crimes Court on charges of corruption, fraud and money laundering.”
The trial of the accused is set to start on July 24 in the Nelspruit Specialised Commercial Crime Court.
