Diko-linked company Ledla loses second SCA appeal

The Supreme Court of Appeal has dismissed a second appeal by Ledla Structural Development against the Special Investigating Unit’s (SIU’s) Special Tribunal orders.

The orders, dated between 10 December 2020 and 4 February 2021, declared the R139 million personal protective
equipment (PPE) contract, awarded by the Gauteng Department of Health (GDOH) to Ledla, unlawful and invalid.

The order also directed that payments made by the department to Ledla be forfeited to the State.

Ledla is linked to Thandisizwe Diko, the late husband of former presidential spokesperson Khusela Diko, who was subjected to an internal disciplinary process after news of the scandal broke in January.

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SCA dismissed Ledla’s special leave to appeal

Ledla had initially applied to the Special Tribunal for leave to appeal the order, but that application was dismissed on 25 May 2021.

The company’s two directors then applied to the SCA for special leave to appeal.

The SCA upheld the Special Tribunal’s decision and the case was dismissed on 15 September 2021 on the grounds that there are no reasonable prospects of success in the appeal.

The court also said Ledla failed to provide compelling reasons why an appeal should be heard.

“This is the second failed attempt by Ledla and its directors to appeal the said Tribunal order(s),” said SIU spokesperson Kaizer Kganyago.

SIU welcomes SCA order

President Cyril Ramaphosa ordered the SIU to investigate allegations of corruption, malpractice, maladministration and irregularities surrounding the procurement of goods and services during the Covid-19 pandemic.

Its subsequent investigations revealed that the Gauteng Health Department irregularly awarded Ledla a contract for the supply and delivery of PPE.

“The SIU welcomes the SCA order as an affirmation of the standing of the Special Tribunal in adjudicating matters brought to it by the SIU and the orders granted,” said Kganyago.

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