Department of Defence Minister Thandi Modise. The Hawks says the criminal cases involve tender corruption and fraud. Photo: Gallo Images.
The Hawks are investigating four criminal cases that saw the Department of Defence and Military Veterans lose R167 million in public funds through fraud and corruption.
In a presentation to MPs on Wednesday, the Hawks said the crimes involve failure to follow proper procurement processes, fraud and money laundering.
In one of the cases reported in 2021, five companies and five officials at the department of military veterans are implicated in fraud and money laundering.
The five officials have been suspended in the R37 million tender fraud.
They are accused of subverting procurement procedures and awarding sewing and furniture manufacturing tenders to their friends and associates.
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According to the Hawks, the money was deposited into bank accounts belonging to individuals.
“No valid service level agreement or contract was signed. There were no advertisements nor invitations to bidders.
“The tenders were awarded to their favoured friends,” said Hawks head Advocate Godfrey Lebeya.
The officials are further accused of irregularly appointing their associates to senior positions for which they lacked qualifications and experience.
Three officials are also facing the music for the R57 million tender issued to repair potholes.
The department allegedly awarded a tender to train 900 vets on how to repair potholes in all provinces, as well as the procurement of the machines.
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According to Lebeya, proper supply chain processes were not followed during the awarding of the contracts.
The 90 rammers purchased – 10 for each province – reportedly disappeared from a store in Johannesburg and can’t be traced.
Hawks investigators interviewed the complainant last week. However, the corruption-accused officials are still at work.
At least 17 SA National Defence Force (SANDF) members, eight service providers and four company directors face charges in a R44 million PPE tender fraud.
The companies supplied masks to the department and are alleged to have paid kickbacks to the officials.
The department has charged its members, but in accordance with the Defence Act, they could not charge the four civilians and the companies involved.
In another case, a whistleblower reported irregularities regarding skills development for veterans.
A service provider was paid a whooping R4 million for a three-day security training course.
It was later discovered that the service provider wasn’t registered with the Private Security Industry Regulatory Authority (PSIRA) as required.
A second company in the same matter was irregularly awarded R25 million to purchase equipment and machines.
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