JN Reporter

The Special Investigating Unit (SIU) has frozen properties worth  R8.4 million, linked to the alleged looting of R27 million Covid-19 PPE fraud from the Northern Cape Department of Health.

This follows an order from President Cyril Ramaphosa that directed the SIU, under Proclamation R23 of 2020, to investigate corruption, maladministration, and unlawful payments by state institutions related to PPE procurement.

The interim order prevents the respondents from selling or dealing with the properties in Kimberley and Bryanston, which are suspected to have been bought with the proceeds of the fraud.

In June 2020, Macronym 37 (Pty) Ltd was awarded a contract to supply the department with 50 000 coveralls, 250 000 surgical masks, and 250 000 masks.

The contract, valued at R26 960 025, was allegedly authorised by the department’s former Chief Financial Officer, Daniel Gaborone, and approved by former Acting Head of Department, Dr Dion Theys.

The SIU spokesperson Kaizer Kganyago, said: “The preservation orders placed on these properties are intended to facilitate the recovery of financial losses suffered by the state due to corruption or maladministration.”

Kganyago said investigators revealed that the procurement was fraudulent and premeditated. .

He says the order quantities were inflated, with the department’s own submission requesting only 30 000 N95 masks and no coveralls, yet the contract included 50 000 coveralls and 250 000 masks, creating an over-expenditure of over R8 million on masks alone.

He further said forensic analysis showed that invoices from sub-contractor Masedi Star were fabricated in 2022, with two contradictory versions existing.

Kganyago also said bank records indicated Macronym paid R2 million instead of the R13 248 million claimed.

According to Kganyago the financial tracing revealed that within days of receiving the state funds, the company used the money for personal enrichment, including property purchases, transfers to related parties, cash withdrawals, and luxury items such as a jacuzzi and a high-end sound system. 

He added that the investigation found that Macronym was not tax-compliant and was not registered as a medical supplier at the time of the contract award.