Former Santaco CEO received payments from blacklisted PPE suppliers – SIU report

The Special Investigating Unit report probing dodgy PPE contracts has revealed that former Santaco CEO Nkululeko Buthelezi received payments from two suppliers contracted to provide PPE to the department of transport.

The SIU has since recommended those suppliers (Ecko Green Environmental Consulting and Mistralog) be blacklisted from doing business with the state.

Ecko Green and Mistralog were awarded contracts worth R8 million and R1.3 million respectively.

In September 2020, the department of transport had adopted a “multiple award approach” in the procurement of its PPE.

The department needed to provide taxi operators (among other transport personnel) across the country with PPE products and equipment.

Buthelezi had provided the transport department’s director general’s office details for the two companies.

Mistralog Director, Charmaine Londiwe Noncebo Buthelezi also works as an administrative manager at Buthelezi’s sanitation company Pendowell.

The report found that Buthelezi had used Mistralog as a front in securing the contract from the transport department.

“It is evident from the flow of money after receiving payment from National DoT, 14% of the profit was paid to the CEO of Santaco: Mr Nkululeko Buthelezi,” said the report.

The SIU found that the department’s acting CFO and Supply Chain Management director did not follow the proper emergency procurement processes in awarding Mistralog the contract.

Ecko Green Director Sharon Bhimjee had also paid a portion of the profits to Buthelezi.

Further investigations revealed that Ecko Green is not registered on the Central Suppliers Database to supply Covid-19 PPE commodities, neither are they manufacturers of PPE.

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Ecko Green had also misrepresented itself by manipulating the CSD profile for supplier number MAAA0902160, by amending the legal name of this company (K2013138175 (South Africa)) to Ecko Green.

“The SIU investigation identified excessive pricing charged by Ecko Green when compared to the maximum price threshold prescribed by National Treasury.

“The excessive price amounts to R9 900. The profit made by Ecko Green amounts to R1.701,000,” said the SIU report.

The SIU also uncovered that the department had awarded a R175,000 tender to Buthelezi’s wife’s company Cherry Pickles. But Cherry Pickles was registered on the National Supplier Database and quoted prices lower than those recommended by Treasury.

The SIU has recommended that disciplinary action be taken against the department’s SCM Director Reinette de Villiers and against the former acting CFO Dalian Mabula for misconduct.

On 16 September 2021, the SIU referred its evidence against Ecko Green and Mistralog and its representatives to the NPA. The investigating body also recommended that the two companies be blacklisted.

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