SIU Triumphs in Special Tribunal: Pro Secure (Pty) Ltd's Exceptions Dismissed in PPE Procurement Case

In a landmark ruling, the Special Tribunal has dismissed Pro Secure (Pty) Ltd's bid to avoid scrutiny by the Special Investigating Unit (SIU) for their role in the alleged irregular procurement of personal protective equipment (PPE) during the COVID-19 pandemic. The dismissal, made on 24 July 2024, is a pivotal win for the SIU, reinforcing the fight against corruption within state institutions.

The application by Pro Secure (Pty) Ltd challenged the SIU’s legal authority and questioned procedural aspects regarding non-joinder of the department and timing under the Promotion of Administrative Justice Act (PAJA). However, the tribunal's rejection of these exceptions, ordering Pro Secure to cover legal costs, including those for two counsels, is a clear message against impunity for entities involved in irregular state contracts.

This outcome emanates from thorough investigations conducted by the SIU, which revealed suspect activities around the awarding of PPE contracts worth around R182 million by the Limpopo Department of Health. The probe, triggered by allegations of corruption, pinpointed illicit conduct within the tendering processes, with Dr. Thokozani Florence Mhlongo, former Limpopo Health Head of Department, being central to the dealings.

The SIU not only initiated civil proceedings against Dr. Mhlongo and Pro Secure but also succeeded in interdicting Dr. Mhlongo's pension payout following her resignation in the face of disciplinary proceedings. The interdiction of pension benefits is a noteworthy legal tool being utilized to hold accountable individuals accused of corruption.

The SIU's persistent legal efforts are in response to President Cyril Ramaphosa's directive under Proclamation R23 of 2020, targeting alleged corruption in the PPE procurement sphere—a scandal that has tainted the pandemic's response efforts. The president’s decision to engage the SIU illustrated a commitment to rooting out malpractice and misappropriation of resources meant for public health.

The implacable approach by the SIU, sanctioned by the Special Investigating Units and Special Tribunals Act 74 of 1996, enables the unit to tackle corruption head-on. By taking civil action and referring findings of criminal conduct to the National Prosecuting Authority, the SIU operates as a vital cog in the wheel of justice, ensuring that acts of fraud and maladministration do not escape the legal net.

Through this apt display of legal authority, the SIU is setting precedents in how South Africa grapples with instances of mismanaged state funds. The dismissal by the Special Tribunal emboldens the SIU, underlining their crucial role in safeguarding public interest and ensuring that justice prevails in the realm of government procurement procedures.