SIU freezes accounts of 40 companies linked to PPE corruption

The companies are all linked to the irregular awarding of tenders for personal protective equipment (PPE).

Judge Billy Mothle granted an order on Thursday to freeze accounts worth some R38.7 million that is due to be recovered.

The order interdicts the Gauteng Department of Health from making any further payments to the 40 companies, including Ledla Structural Development and Royal Bhaca Projects.

 

"In the paper before the Special Tribunal, Ledla Structural Development was awarded a contract by the Gauteng Department of Health for the supply of Covid-19 items, which the SIU contends was unlawfully, irregularly and corruptly awarded, and at prices which were grossly inflicted way in excess of market related prices,” Mothle explained in his order.

“Ledla Structural Development subsequently transferred a large portion of the proceeds to entities and individuals, which funds, the SIU contends in court papers are liable to be forfeited to the state."

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The health department's Chief Financial Officer, Kabelo Lehloenya, resigned before being implicated by the SIU in Covid-19 corruption. Lekgetho said the number of alleged contracts under investigation continues to increase. "When we look at Gauteng [health department] we are looking 90 companies used to procure PPE, we are also looking at 30 companies used to procure medical equipment.

Former Gauteng Health CFO Kabelo Lehloenya has also been fingered as an enabler of corruption at the department.

SIU spokesperson Selby Makgotho says the order also prevents Lehloenya from drawing on his state pension until the finalisation of a civil case.

"The Special Tribunal held that the civil recovery proceedings against Lehloenya be instituted within 15 days of the granting of the order for recovery of financial damages suffered by the misconduct and acts of dishonesty.”