PPE report: Nomvula Mokonyane paid suppliers from personal account

The Special Investigating Unit (SIU) personal protective equipment (PPE) corruption report shows that former cabinet minister and ANC head of organising Nomvula Mokonyane paid supplier invoices out of her personal account, on behalf of her daughter’s company.

The SIU report, which was released on Tuesday, shows Mokanyane paid R1.6 million from her personal account on behalf of privately-owned Tuwo Rhodesia to supply the Gauteng Health Department (DoH) with 200 000 soap bars.

The DoH contract was valued at over R2.7 million.

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The Companies and Intellectual Property Commission (CIPC) lists the Tuwo Rhodesia directors as Bonelwa Mgudlwa and Katleho Mokonyane, the latter being the daughter of the former Environmental Affairs Minister.

Mgudlwa was employed at SAA Express Airways at the time the contract was awarded, but he failed to declare his interests at SAA Express.

Tuwo Rhodesia was also not registered for VAT with SARS at their time of appointment.

In March 2020, the Gauteng Health Department had contacted Tuwo Rhodesia to submit a quote for 200 000 Dettol soap bars. By the end of the month, Tuwo Rhodesia was awarded the R2.7 million contract.

Further investigations show that department officials didn’t even bother to shop around for more competitive prices.

In April, Tuwo Rhodesia bought the soaps from Continental Cash and Carry (CCNC) at a price of R1 509 407 (including VAT).

On 3 April 2020, the former minister paid R1.6 million to Tuwo Rhodesia with the description “Continental Cash”.

The following day, CCNC issued another tax invoice to Tuwo Rhodesia for R140 683 (including VAT) for 1 421 12-packs of 175g Dettol soaps at R86.09 each (excluding VAT), plus a total VAT amount of R18 350.

“This means that this invoice of CCNC was therefore for 17 052 units of soap at a unit price of R8.25 each (including VAT),” said the SIU report.

Further investigations reveal that an amount of R50 100 was also paid from Mokonyane’s personal account on 6 April with the description “Continental Cash and”.

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The two CCNC invoices show 200 004 units of soap was purchased for the total amount of R1 650 058.33.

“The total amount paid by former Minister Nomvula Paula Mokonyane was R1 650 100,” said the SIU.

Mgudlwa told the SIU they “sourced funds from the inheritance money as received by his co-director from her late father’s estate.”

“We will be forever grateful and indebted, in gratitude, for the support received from family in this regard,” he said.

He also stated that Tuwo Rhodesia had access to trade capital funding companies assisting small black businesses with funding.

On 11 May, Gauteng DoH paid Tuwo Rhodesia R2 790 000. Tuwo Rhodesia then paid Mokonyane R1.1 million, R900 000 to Katleho Mokonyane and R35 000 to Mgudlwa.

The SIU said it informed SAA Express Airways of Mgudlwa’s conflict of interest, but the airline stated it would not take action against him, as it was under administration at the time.

The SIU has referred Tuwo Rhodesia to the Competition Competition for unfair, excessive and unreasonable pricing.

It also referred Gauteng DoH Head of Department Professor Mkhululi Lukhele to the National Prosecuting Authority for criminal charges of gross financial conduct.

However, the SIU did not find any wrongdoing by Mokonyane.

Lukhele was suspended from his post in September 2020.

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