Major Crackdown on COVID-19 PPE Corruption: R52 Million in Assets Seized

In an unprecedented move, the Asset Forfeiture Unit (AFU), along with the Special Investigating Unit (SIU) and the Directorate for Priority Crime Investigation (Hawks), has cracked down on alleged corruption linked to COVID-19 procurement within the Mpumalanga Department of Public Works. Assets valued at roughly R52.6 million have been seized by enforcement agencies, signaling a determined fight against pandemic-related malfeasance.

The operation, following a preservation order from the High Court of South Africa in Mpumalanga Division, Mbombela, has led to the seizure of 29 properties, 31 vehicles, electronics, and various other assets. These assets are believed to be linked to senior management officials and service providers engaged in corrupt practices concerning personal protective equipment (PPE) tenders related to the COVID-19 response.

The investigation has pointed to gross misconduct involving senior management officials who are thought to have awarded PPE contracts to suppliers that failed to deliver, resulting in significant monetary losses and potential endangerment to public health. The implicated individuals and entities allegedly engaged in multimillion-rand kickbacks, fraud, theft, and money laundering. The seized assets also include bank accounts and frozen property, further incapacitated with the removal of internet banking privileges slated for July 2024.

The list of restrained individuals and entities encompasses a range of department officials and service providers such as Macdonald Sigudla, Dorries Mbatha, Bandile Ngcobo, and companies like Maganeleni Trading and Projects and Thandolwam Transport and Projects, among others. The legal basis for these actions rests on Section 26 of the Prevention of Organised Crime Act, which aims to preserve the value of assets before a potential confiscation order upon conviction.

The initiation of these stringent measures traces back to a directive issued by President Cyril Ramaphosa, mandating the SIU to investigate possible corruption in PPE procurement. The investigators have responded by unearthing the extensive corruption network, later referring their findings for criminal proceedings. The implicated officials and suppliers will face the law charged with corruption, fraud, and money laundering at the Commercial Crimes Court.

This decisive clampdown reiterates South Africa's stand against corruption and abuse of state resources, especially during times of crisis. The joint forces of the AFU, SIU, and Hawks are a testament to the seriousness of the government's commitment to transparency and accountability in public procurement, sending a robust message to potential usurpers of public funds.