SIU recommends blacklisting NC companies

THE SPECIAL Investigating Unit (SIU) report into the procurement of personal protective equipment (PPE) in the Northern Cape has recommended that administrative action, including blacklisting, be implemented against a number of companies that were awarded tenders by the provincial Department of Health.

The list includes Macronym 37 (Pty) Ltd, MKV Investments (Pty) Ltd, Asijiki Soundbytes (Pty) Ltd, Revolt Headboy (Pty) Ltd and CMED Suppliers for contravention of the Medicines and Related Substances Act.

It was indicated that DNS Supplies, Asijiki Soundbytes (Pty) Ltd and CMED Suppliers contravened the Competition Commission Act, where goods and services were charged at “excessive, unfair and unreasonable prices”.

It was stated that the Department of Health had acknowledged receipt of the referrals that were done in July and November last year, while feedback was still awaited for transactions that contravened the Competition Commission Act.

The SIU recently handed over the report to President Cyril Ramaphosa, who authorised the public release of the final report, where 5 467 Ppe/covid-19 contracts were investigated that were awarded to 3 066 services providers to the value of over R14.3 billion.

The report indicated that 18 percent of these contracts were still under investigation.

On September 21, 2020 the Office of the Premier in the Northern Cape requested that the procurement of all PPE and Covid-19-related purchases by all provincial departments, including that of the Premier’s Office, be investigated in relation to allegations of corruption.

The SIU stated that it received a report that was compiled by the Northern Cape Provincial Treasury.

“The SIU initiated investigations based on some of the matters highlighted in the Northern Cape Provincial Treasury report.”

An investigation was conducted into three tenders that were awarded by the Northern Cape

Department of Education to ILC Trading and Projects (Pty) Ltd.

This included a toilet roll tender that was made on April 24, 2020 to the value of R18 250, a transaction for 562 funnels on May 8, 2020 to the value of R29 224 and R5 400 that was paid for 300 bars of antibacterial soap on May 8, 2020.

The SIU stated that it was unable to find any irregularities relating to the procurement of goods supplied by ILC Trading with regard to the procurement of toilet rolls to the value of R18 250.

“As a result, this investigation was closed without any outcomes.”

The SIU investigated 99 PPE contracts as well as the appointment of service providers by the Northern Cape Department of Social Development.

It concluded that there were no irregularities.

“The investigation did not reveal any evidence that sustained either the allegation concerned or any other irregularities. As a result, these investigations were closed without any outcomes.”

THE CONTRACTS WHERE NO IRREGULARITIES WERE

DETECTED INCLUDE:

Behluli Projects – two contracts to the value of R454 417

Bhuti Trading – two contracts to the value of R98 450

Bonang & Sonti Civil Construction – one contract to the value of R296 200

Gamsha Projects – one contract to the value of R571 123

IC Catering Services – two contracts to the value of R236 000 Vukolwan Enterprise – three contracts to the vale of R137 379 Ingomso Youth General Trading – three contracts to the value of R315 990

Kay Lynne Oliver Rowan – one contract to the value of R822 570 Khula Motor Mechanics & Services – one contract to the value of R120 000

Kotoane Trading – three contracts to the value of R398 116

Lorato creations – one contract to the value of R170 550

Metcol Business – one contract to the value of R160 000

Miracles Trading 141 – three contracts to the value of R224 400 Novandisithini General Trading – one contact to the value of R90 000

Thingos General Trading 1 – one contact to the value of R348 550

The report was not able to find any wrongdoing with regards to the R13 million tender that was awarded by the South African Police Service to Kamo Training and Consultancy CC for one million face masks.

A whistle-blower reported the matter to the SIU on August 30, 2020 as Kamo Training and Consultancy CC (“Kamo Training”) is owned by Mandisa Shushu, the wife of Norman Shushu, who is a special adviser to Premier Zamani Saul.

The SIU report stated that the SAPS procured the surgical masks for its members in March 2020, where normal supply chain management procurement procedures were deviated from with the approval of the SAPS national commissioner.

“Potential suppliers were identified from the central supplier database application. The SAPS also visited potential suppliers to confirm stock before requesting quotations from a large number of suppliers. Kamo Training was one of these suppliers. They submitted a price quotation on March 29, 2020 to supply 500 000 surgical masks to the amount of R6.5 million.”

The order number was issued on the same date to Kamo Training by the SAPS.

“However, Kamo Training failed to deliver, which resulted in a letter of demand issued by the SAPS on April 16, 2020. By April 20, 2020, Kamo Training still failed to deliver and the SAPS cancelled the contract. As a result, no masks were delivered and no payments were made. No evidence pointing to any irregularities with regards to the procurement of the contract was found.”

The SIU also closed its investigation into six tenders that were awarded by the Northern Cape Department of Transport, Safety and Liaison.

According to the allegations that were made by Provincial Treasury on October 22, 2020, the Northern Cape Department of Transport, Safety and Liaison procured hand sanitiser from six suppliers during September 2020.

THE 6 SERVICE PROVIDERS

INCLUDE:

Vivazela Trading – R747 500

FRB Industries – R660 000

Bright Idea Trading 62 – R731 400 Paradox 6 Investments – R758 993 Upton Solutions – R681 000

Lilac Ventures – R648 000

The SIU stated that this matter fell outside the specified time frame of Proclamation R23 of 2020.

“The procurement process took place in September 2020, while the end date of the proclamation is July 23, 2020. The matter can therefore not be investigated in terms of Proclamation R23 of 2020, hence it was closed.”

The SIU also closed the investigation into the provision of PPE tenders at Kareeberg Local Municipality.

The report indicated that the SIU received an allegation from a whistle-blower that an official from the Department of Health was receiving PPE tenders from the municipality in Carnarvon.

The service provider in question was an entity named Lithemba Business Development and only one contract to the value of R14 500 was investigated.

“The investigation did not reveal any evidence that sustained either the allegation concerned or any other irregularities. As a result, this investigation was closed as it did not reveal any evidence that the official did not receive any PPE tenders,” the report stated.

The Premier’s Office indicated that it would respond at a later stage as to what steps would be taken with regards to the recommendations of the SIU report.