Hawks SIU probes KwaDukuza PPE contracts valued at R4.2 million

Fifty-nine contracts for the procurement of personal protective equipment (PPE) by KwaDukuza municipality (KDM) to the value of R4.2 million are confirmed to be under investigation by the Hawks Special Investigating Unit (SIU). 

The investigation forms part of an extensive probe by the SIU, looking into alleged irregular expenditure of Covid-19 PPE contracts.

The probe was ordered by President Cyril Ramaphosa last July.

In KwaZulu-Natal the SIU are also investigating eThekwini and uMngeni municipalities for the same reason. 

KDM spokesperson Sipho Mkhize said the municipality has cooperated with the SIU investigation and given them everything they required. 

“We await their report on the findings from the information we handed over,” he said. 

IFP councillor Moosa Motala said his party welcomed the investigation as there appeared to be areas of disregard to existing procurement processes in the municipality that needed intervention.

Consequence management was something that also needed to be followed through, he stressed, and called for decisive consequences for officials found plundering public funds. 

During a sitting of the National Council of Provinces (NCOP) last July, Ramaphosa said the SIU reports would be made public once complete.

He applauded the work of the multi-law enforcement agency fusion centre, which allowed the National Prosecuting Authority (NPA), the SIU, Sars, the Hawks and the Financial Intelligence Centre to work together.

DA caucus leader Madhun Sobram Sing said his party had raised the PPE probe by the SIU in a council meeting and had been assured all procurements were in order.

KDM council heard on September 30 that the municipality had spent R4.2 million on PPE between March 15 and September 11.

The report said that all procurement conducted by the supply chain management unit had complied with the supply chain regulations.

“The PPE report was served before council with cost breakdowns using Covid-19 price guidelines.

“In fact, council reported they had saved almost R1 million in securing PPE.

“We are aware the SIU is investigating the municipality but no reports to date have come to council of any wrongdoing.

“However, should KDM be found wanting, a comprehensive report of the findings must be submitted to council for consideration and actions to be taken.”

The SIU started their investigation on October 2, 2020 when Hawks officials raided the KDM offices and seized documents relating to Covid-19 PPE contracts.

In its countrywide investigation, SIU is targeting payments for goods not delivered, payments made before supplying equipment, payments to unlicenced PPE companies, duplicate payments and price inflation.

Some suppliers or service providers did not have tax clearance certificates, which are required when dealing with government.

It is alleged that legitimate goods and service providers had been ignored while companies connected to friends or politically connected individuals were given the contracts.