R257m Gauteng health PPE contract declared invalid

The Special Tribunal has declared a Covid-19 Personal Protective Equipment (PPE) contract worth over R257 million awarded by the Department of Health in Gauteng to Nkhane Projects and Supply (Pty) Ltd invalid.

The Tribunal announced on Monday that it overturned the contract with Nkhane and ordered the company to submit audited statements within 30 days and pay the Special Investigating Unit’s (SIU) costs for the application.

Nkhane stripped of all profits

The contract, valued at R257 418 300, was reviewed, declared invalid, and set aside. Nkhane Projects and Supply has been stripped of all profits earned from the contract.

“Nkhane shall, within 30 days of the granting of this order, deliver, by filling on Caselines, audited statements setting out its income and expenses in relation to the PPEs it delivered to the department pursuant to the impugned contract, supported by such expert reports as Nkhane may consider necessary,” the judgment made on 5 August said.

“Nkhane shall pay the SIU’s costs of the application, including the costs of two counsels where so employed.”

ALSO READ: Special Tribunal orders GDE suppliers to pay back profits

The Special Tribunal said the SIU’s application came after an investigation that revealed that Nkhane had submitted an unsolicited proposal to the department without going through a competitive bidding process.

The investigation also found that no request was made to deviate from normal procurement processes, and all necessary procurement guidelines were not followed.

End to High Court case

This judgment is expected to bring an end to the High Court case where the company demanded payment of R89 350 280.10 from the department. This amount includes R28 487 234.20 for items that the department is refusing to accept delivery of and R60 863 045.90 for goods that have previously been delivered but have not yet been paid for by the department.

The SIU formally halted the High Court case until the Tribunal matter was resolved.

“This judgment signifies a crucial step in addressing corruption and ensuring accountability in PPE procurement during the Covid-19 pandemic,” the tribunal said.

ALSO READ: 7 million vaccines administered in Gauteng