Pension fund of former department head frozen amid PPE tender scandal

In an endeavour to recoup state funds lost during the wayward awarding of personal protective equipment (PPE) tenders, the Special Investigating Unit (SIU) has been granted an order to freeze the pension benefits of the former Limpopo health department head.

SIU spokesperson Kaizer Kganyago said the unit has obtained a preservation order from the Special Tribunal to freeze the pension benefits of Thokozani Florence Mhlongo.

He said the money would make up part of the R182 million of irregular expenditure incurred by the department during the 2020-2021 financial year.

Three service providers involved

According to the spokesperson, investigations by the SIU had uncovered irregularities in the appointment of three service providers, Clinipro Pty Ltd, Pro Secure Pty Ltd and Ndia Business Trading (Pty) Ltd.

The companies, Kganyago said, were contracted by the department for the supply and delivery of PPE items. This resulted in the Limpopo health department incurring irregular expenditure and/or fruitless and wasteful expenditure of about R182 million.

Pension withheld pending determination of proceedings

“The Special Tribunal order interdicts and restrain the Government Employees Pension Fund from paying out or transferring any benefits due to Mhlongo pending the final determination of civil proceedings for recovery of damages or losses suffered by the department and disgorgement of profit derived from unlawful contracts and secret profits, if any,” said Kganyago in a statement.

Mhlongo resigned with immediate effect in June as she was about to face disciplinary proceedings in relation to the questionable awarding of PPE tenders in Limpopo.

Cellphones scandal

Yesterday Kganyago said Mhlongo, as the accounting officer, had also exposed the department to wasteful expenditure when she authorised the procurement and payment of 10 000 cell phones to the value of R10 million for Covid household screening at the time.

“However, the department could only distribute 388 of the 10 000 cellphones between September 2020 and March 2021.”

The SIU investigation has also revealed the cellphones were distributed without the required screening application. He said after the cellphones in storage were counted by SIU investigators in March 2021, the department distributed 9 588 cellphones to community health workers for Covid vaccinations without the required application installed.

– news@citizen.co.za