PPE tenders: Special Tribunal dismisses Pro Secure’s application with costs in R182m matter

The Special Tribunal dismissed with costs an exception application brought by one of the companies allegedly involved in personal protective equipment (PPE) tender corruption in Limpopo.

The Special Tribunal is an arm of the Department of Justice whose mandate is to recover public funds lost through corruption and irregularities. It has been empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 in its function and may refer evidence of criminal conduct it uncovers to the National Prosecuting Authority (NPA) for legal action.

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During the Covid-19 pandemic, the Limpopo Department of Health issued tenders to obtain PPE for healthcare workers.

Pro Secure was one of a handful of companies to be issued tenders that were found to be irregular, resulting in approximately R182 million in irregular and/or fruitless and wasteful expenditure by the department.

Several exceptions raised are shot down

The Special Investigating Unit (SIU) revealed on Monday that the tribunal’s decision, handed down on 24 July 2024, rejected Pro Secure’s exception application with costs, including those for two counsels.

“This ruling supports the SIU’s stance on the irregular procurement of PPE by the Limpopo Department of Health during the pandemic,” the unit said.

The order follows an investigation by the unit into the affairs of the Limpopo Department of Health.

Pro Secure raised several exceptions to the SIU’s particulars of claim, challenging the SIU’s legal standing (locus standi), the non-joinder of the relevant department, review jurisdiction, and issues related to the timing of the judicial review under the Promotion of Administrative Justice Act (PAJA).

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“The SIU’s investigation uncovered irregularities in the appointment of service providers such as Pro Secure (Pty) Ltd, Clinipro (Pty) Ltd, and Ndia Business Trading (Pty) Ltd for the supply and delivery of PPE, resulting in approximately R182 million in irregular and/or fruitless and wasteful expenditure by the department.

“The SIU instituted civil proceedings against former Limpopo Health Head of Department Dr Thokozani Florence Mhlongo and Pro Secure (Pty) Ltd, alleging various irregularities and contraventions in the awarding of a tender.

“The SIU has successfully interdicted the pension payout of Dr Mhlongo following her resignation amid disciplinary action.”

R52 million worth of assets seized

Two weeks ago, the Asset Forfeiture Unit (AFU) of the NPA, the SIU, and the Directorate for Priority Crime Investigation (Hawks) seized various assets and properties valued at approximately R52.6 million linked to irregular tenders in Mpumalanga.

The assets and properties are linked to 22 senior management officials, service providers, and entities involved in an alleged tender corruption network within the Mpumalanga Department of Public Works.

Additional reporting by Faizel Patel.