The KwaDukuza Municipality has been cleared of any wrongdoing in its procurement processes following an investigation into irregularities around the purchase of Covid-19 personal protective equipment (PPE).
Countrywide probes into municipalities’ spending in this regard were ordered by President Cyril Ramaphosa in July 2020.
The investigation was launched when a whistleblower informed the Hawks Special Investigations Unit (SIU) about alleged irregular expenditure, rigged procurement processes and service providers inflating prices.
The SIU investigated 63 contracts valued almost R3.9 million, involving 32 service providers.
KwaDukuza ranked third among the entities investigated, with eThekwini Metro at the top of the list, followed by the Education Department.
The SIU is investigating contracts to the value of more than R1.1-billion in KZN.
Also read: PPE corruption report: Gauteng the worst offender
The potential value of money to be recovered from this is estimated to be just over R14.5-million.
Findings indicated that KwaDukuza Municipality had followed proper protocols, but 10 companies delivering services to the municipality were found to be not registered with the South African Health Products Regulatory Authority (SAHPRA) or licensed to supply or distribute medical devices.
These companies include Khehloz Wheel Projects, Konkrit Business Solutions, Dhanasagri Trading and Projects, Get Smart Safety Medical and General Suppliers, Impumelelo CKA Darnal, Life Employee Health Solution, Sgwerango Holdings 16, Shayimpi Security and Trading, T&T Chemicals and Vesta Creations.
Referrals of the mentioned companies were submitted to SAHPRA with the total value of the contracts amounting to R328 095.
Charges the companies face include the contravention of Section 14, 19 and 22C (6) of the Medicines and Related Substances Act, Act number 101 of 1965.
SAHPRA will be drafting affidavits for criminal referrals, which could include blacklisting the companies.
The report does not include details of ongoing investigations.
KwaDukuza mayor Lindile Nhaca said the municipality welcomed the findings.
“Clearly the report sends a strong message that KwaDukuza is not about fraud and corruption, but an institution of integrity committed to providing services to the community.
“We welcome efforts by whistleblowers committed to ensuring that government is held accountable,” she said.
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