Special Investigating Unit (SIU) has released the Gauteng Department of Health’s personal protective equipment (PPE) tender award findings.
According to the SIU, the R103 million PPE tender awarded by the Gauteng Department of Health to Zakheni Strategic Supplies (Pty) Ltd has been declared unlawful and invalid.
The Special Tribunal has ordered Zakheni to pay back all profits earned from the tender after the SIU found that the multimillion tender was awarded without following regulations governing public procurement.
“SIU probe uncovered that on 19 April 2020, the department, through its Chief Financial Officer (CFO), Ms KabeloLehloenya, received a quotation from Zakheni for the supply to the department of specified PPE items like gloves and mask.
“Twenty-four (24) hours later, the department issued a commitment letter to Zakheni, signed by the CFO.
“In terms of the commitment letter, Zakheni would supply PPE to the department to the value of R103, 770, 000,” the statement read.
Judge President of the Special Tribunal, Judge Modiba handed the judgment on Wednesday.
“The irregular manner in which the contract was awarded constitutes a material infraction to the constitutional values of fairness, transparency, equity, effectiveness, and cost-effectiveness.
“Zakheni is not entitled to profit from an irregular contract. I find no basis to exercise my discretion to permit Zakheni to benefit from the contract under the present circumstances.
“It is therefore just and equitable that Zakheni is ordered to account to the Department for the profits it has earned or stands to earn from the impugned contract and to be divested of such profits,” the judge ruled.
Zakheni has 30 days to provide audited financial statements for the financial year covering the period in which the parties performed under the impugned contract to the Registrar of the Tribunal and the SIU
