Two personal protective equipment contracts worth more than R14m that were awarded during the Covid-19 pandemic in Mpumalanga have been declared unlawful and set aside, with the beneficiaries ordered to repay profits made from the deals.
The Special Investigating Unit (SIU) said the Special Tribunal had found the contracts valued at R1.08m for 60,000 surgical masks and R13.3m for 150,000 protective medical jumpsuits, to be constitutionally invalid, unlawful and void.
The contracts were awarded by the Mpumalanga department of health to Tark Group (Pty) Ltd, a company co-owned by Katleho O’Hara Mokonyane and Bonelela Mgudlwa.
The tribunal ruled that the company benefited unlawfully and held the co-owners personally liable, ordering them to repay the profits earned from the deals.
SIU spokesperson Selby Makgotho said the ruling confirmed the contracts were irregularly awarded and that the suppliers had no legal basis to benefit.
Investigations by the SIU uncovered widespread violations, including the bypassing of bid committees, deviations from transversal contracts, and the appointment of a supplier without proper accreditation or a required South African Health Products Regulatory Authority licence.
The tribunal also made adverse findings against officials in the Mpumalanga department of health, noting that the department issued premature letters of award, sidestepped bid evaluation and adjudication processes and accepted non-compliant bids.
Although the department did not oppose the application, the tribunal found its conduct central to the irregularities.
Makgotho said the judgment was part of the SIU’s broader efforts to recover public funds lost during the Covid-19 national state of disaster.
“This outcome sends a clear message that suppliers who do not meet legal requirements cannot profit from the state, and the SIU will use its litigation powers to ensure public funds are recovered,” he said.
The SIU investigation was authorised by President Cyril Ramaphosa under Proclamation R23 of 2020, which mandated probes into allegations of corruption, maladministration and improper conduct in PPE procurement.
TimesLIVE
Mmatumelo Lebjane
www.timeslive.co.za
