Presidency releases SIU report on ‘Covid-19 PPE’ irregular contracts

President Cyril Ramaphosa has released the Special Investigative Unit (SIU)’s final report into the Covid-19 related protective procurement and equipment which were declared irregular.

Following 18-month of investigation, Ramaphosa on Tuesday authorised the release of the final report of the SIU into procurement associated with the Covid-19 pandemic by all spheres of government.

In the report, Presidency confirmed that 4 549 contracts and more than 2 800 contracts were irregular as per the SIU’s investigations.

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

Investigations have been finalised with respect to 4,549 contracts, of which 2,803 were found to be irregular. This amounts to 62% of the finalised investigations,” acting presidency spokesperson Tyrone Seale said.

Seale said investigations revealed “45 matters constituting a combined value of R2.1bn have been enrolled with the Special Tribunal on corruption, fraud and illicit money flows.

“The SIU has made 224 referrals for disciplinary action against officials in government departments or entities. The SIU has made 386 referrals to the National Prosecuting Authority (NPA), as well as three referrals for executive action,” addressed Seale.

“Since the start of the investigation, the SIU, working with other agencies, has made progress in managing consequences arising from the investigation,” the Presidency stated.

45 matters – constituting a combined value of R2.1 billion – have been enrolled with the Special Tribunal on corruption, fraud and illicit money flows.

The Special Tribunal has a statutory mandate to recover public funds syphoned from the fiscus through corruption, fraud and illicit money flows, and engages in civil action that is more flexible and less time-consuming than adversarial.

The SIU has made 224 referrals for disciplinary action against officials in government departments or entities, and 386 referrals to the NPA, as well as three referrals for Executive Action.

The SIU has further made 330 referrals for administrative action, which includes blacklisting.

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.