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8 key points from the SIU's final report on government's dodgy Covid-19 tenders

25 January 2022 2:14 PM
Tags:
Corruption
NPA
Kaizer Kganyago
SIU
President Cyril Ramphosa
COVID-19 Tenders
COVID-19 procurement contracts
Covid-19 prosecution

Midday Report host Mandy Wiener chats to SIU spokesperson Kaizer Kganyago.
  • The SIU's final report on government's Covid-19 spending has found that 2,803 contracts of the 4,549 finalised investigations were irregular
  • That represents 62% of the SIU's finalised investigations
  • President Cyril Ramaphosa has authorised the release of the final report on Tuesday
  • The SIU was tasked with investigating dodgy Covid-19 contracts, including the Digital Vibes scandal, Gauteng school sanitising tender, and the Eastern Cape Health Dept's "Scootergate"

President Cyril Ramaphosa in Tembisa on Thursday, 29 July 2021. Picture: Xanderleigh Dookey-Makhaza/Eyewitness News.

President Cyril Ramaphosa has authorised the release of the final report by the Special Investigating Unit (SIU) on the state's dodgy Covid-19 contracts.

In July 2020, Ramaphosa authorised the SIU to probe any allegations relating to the misuse of Covid-19 funds across all spheres of government.

The SIU investigated 5,467 contracts awarded to 3,066 service providers with a total value of R14.3 billion

The SIU has released a 737-page report detailing the extent of the "rot" found in procurement processes during the last 18 months, says spokesperson Kaizer Kganyago.

Here's a summary of the key findings made:

  • A total of 2,803 contracts of the 4,549 finalised investigations were irregular, which amounts to 62% of the finalised cases
  • A total of 45 matters, worth R2.1 billion, have been enrolled with the Special Tribunal on Corruption in a bid to recover the public funds through civil action
  • The SIU has sent 386 matters to the NPA for prosecution and 330 referrals for administrative action, which includes blacklisting
  • The unit has made 227 referrals for disciplinary action against officials in government departments or entities
  • Three referrals were also made for executive action which saw two MECs in Gauteng and in the Eastern Cape "relieved of their duties"
  • The rand value of actual cash and assets to be recovered on the basis of the investigation is R551.5 million, while cash and assets recovered to date total R34.2 million
  • The value of potential loss prevented by the investigation is R114.2 million
  • The value of contracts that have been set aside amounts to R170.4 million

RELATED: 'NPA's state capture task force pointless if capacity constraints aren't fixed: Maughan

Kganyago says "most of the contracts were not legally in line with the procurement processes".

In some cases, "people were just sending WhatsApp messages and they were given contracts" for tenders in the the Gauteng Health Department.

In other instances, Kganyag says oofficials received outside pressure to give contracts to certain people.

He says the process of recovering the money is still underway and the NPA has been asked to act swiftly on the cases referred to it for prosection.

When we did that investigation we found that there are 62% of them that are irregular... majority of them have bene found to be irregular.

Kaizer Kganyago, SIU spokesperson

Most of the contracts that are there were given to friends and family of people that were involved because at the time people were thinking that nobody will come looking and they just flouted under the disguise of it being an emergency.

Kaizer Kganyago, SIU spokesperson

We really expect the prosecutions to happen because we have given them the files, we have given them the evidence... We know, because we are monitoring the matters, that prosecutors are being allocated. We are already working with those prosecutors. Our people are available to give evidence when needed and we hope that it will be done in a speedy manner and those people will suffer the consequences.

Kaizer Kganyago, SIU spokesperson



25 January 2022 2:14 PM
Tags:
Corruption
NPA
Kaizer Kganyago
SIU
President Cyril Ramphosa
COVID-19 Tenders
COVID-19 procurement contracts
Covid-19 prosecution

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