The Special Tribunal has ordered Nozihle Construction and Projects CC to repay over R2.42-million to the Mpumalanga Department of Health, following a judgment declaring a multimillion-rand personal protective equipment (PPE) contract unlawful.

The Special Investigating Unit (SIU) secured a court order for the recovery of R2 427 333.30, with SIU spokesperson Kaizer Kganyago explaining that the order relates to an April 2020 contract for the supply of 100 000 3-ply surgical masks, valued at R2 645 000.

The Tribunal found that the contract was unlawful and void as Nozihle Construction and Projects CC was not licensed as a distributor of medical devices with the South African Health Products Regulatory Authority, as is mandatorily required by the Medicines and Related Substances Act.

“The order affirms the SIU's argument that any transaction performed in contravention of statutory prohibition is void,” Kganyago said.

He added that the judgment was a critical outcome of the SIU’s “relentless efforts” to recover public funds lost during the Covid-19 national state of disaster.

“It sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the State, and the SIU will use its litigation powers to the fullest to ensure such funds are returned,” he stated.

The recoverable amount of R2 427 333.30 represented the difference between the price paid by the Health Department and the average price for masks on the National Treasury's transversal contracts, Kganyago said.

The Special Tribunal also set aside the contract and ordered Nozihle Construction and Projects CC to pay the SIU’s costs, including the costs of two counsel.

In line with the Special Investigating Units and Special Tribunals Act, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action.

Under the Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration, explained Kganyago.