Awarding of Gauteng PPE tender to Ledla was ‘unlawful’, rules tribunal

The Special Tribunal of South Africa has ordered that the contract awarded to Ledla Structural Development by the Gauteng department of health be reviewed and set aside.

This was after the Special Investigating Unit (SIU) had requested that an order reviewing and setting aside the “purported award of a contract by Gauteng department of health to Ledla be declared as unlawful and invalid”.

Ledla, alongside other 39 other contractors, stand accused of benefitting from a tender involving the supply of personal protective equipment (PPE) and services during the Covid-19 pandemic.

Judge Billy Mothle delivered the judgment on Thursday morning after the judgment had initially been reserved by the tribunal.

JUST IN: The Special Tribunal has ordered contract awarded to Ledla Structural Development by @GautengHealth to deliver and supply of COVID-19 PPE is reviewed and set aside. #SIU pic.twitter.com/U6slQiA6AC

— Special Investigating Unit (SIU) (@RSASIU) December 10, 2020

Background

In August, the SIU filed an application in effort to the freeze of R38.7 million in 40 Gauteng-based contractors’ bank accounts.

The SIU obtained an interim order against entities linked to a Gauteng health department PPE tender that was allegedly irregular obtained.

Among these were accounts linked to Ledla Structural Development, Royal Bhaca Projects and Mediwaste. Royal Bhaca Projects is owned by Madzikane II Thandisizwe Diko, the husband of President Cyril Ramaphosa’s spokesperson, Khusela Diko.

READ MORE: Special Tribunal postpones Gauteng PPE tender matter

The SIU argued that the tender to supply Covid-19 items was unlawfully, irregularly and corruptly awarded to Ledla Structural Development and was awarded at prices which were grossly inflated in excess of market-related prices.

It also alleged that Ledla transferred a large portion of the proceeds it received into the bank accounts of various other entities and people.

Additional reporting News24 Wire

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