The Special Investigating Unit (SIU) has welcomed a high court judgment dismissing controversial businessman Hamilton Ndlovu’s application to reinstate an appeal against the Special Tribunal decision to set aside a R158 million Personal Protective Equipment (PPE) contract.
The contract was awarded by the National Health Laboratory Service (NHLS) during the COVID-19 pandemic.
“The appeal had lapsed due to the failure to act within the prescribed timelines, and the appellants’ explanation for the delays was found to be superficial, contradictory and dishonest.
“Evidence presented in the case revealed that Mr Ndlovu used multiple fronting companies to exploit emergency procurement processes fraudulently during the COVID-19 pandemic,” the SIU said in a statement.
Ndlovu’s legal troubles began when the SIU launched an investigation into allegations of corruption and the circumstances in which eight companies, directly and indirectly linked to Ndlovu, obtained contracts worth a total of R172 million for the NHLS PPE procurement.
The businessman was eventually hauled to the Special Tribunal by the corruption-busting unit and ordered by the tribunal to pay back some R158 million in monies gained from the tenders.
“The SIU’s investigation found that almost 90% of the NHLS funds were diverted to Mr Ndlovu and his family for luxury assets, including cars, houses and investments, rather than being used for the intended PPE supply. Ultimately, the court confirmed that Mr Ndlovu and company had no prospects of success in overturning the Special Tribunal’s ruling.”
Between March and April 2021, the NHLS awarded 19 contracts for PPE worth R172 million to companies controlled by Ndlovu.
“However, only R13.8 million of the allocated funds was actually used for the procurement of PPEs, with the remainder being diverted for Mr Ndlovu’s personal enrichment,” the SIU explained.
The contracts were declared unlawful by the Special Tribunal in 2022 and set aside while Ndlovu was ordered to repay R158 million to the entity.
“This ruling follows a series of civil litigation initiated by the SIU and the NHLS to recover assets acquired from the unlawful procurement of PPE during the COVID-19 pandemic.
“The SIU is empowered by Proclamation R.23 of 2020, authorised by President Cyril Ramaphosa, to investigate allegations of corruption, malpractice, maladministration, and irregularities in procuring goods and services by State institutions in response to COVID-19,” the SIU said.