The Special Court for Frozen Bank Accounts Linked to Gauteng’s Irregular PPE Tender to Begin



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Thandisizwe Diko during a Mornachs press conference to discuss the cannibis industry in East London.

Thandisizwe Diko during a Mornachs press conference to discuss the cannibis industry in East London.

Lubabalo Ngcukana / City Press

  • The Special Court will hear arguments in a case between the Special Investigation Unit and 40 Gauteng-based contractors who benefited from PPE contracts.
  • TThe court previously granted an interim order freezing the bank accounts of the 40 entities.
  • The court now has to determine whether to make the provisional order final.

The Special Court is expected to hear arguments Tuesday in a matter between the Special Investigation Unit (SIU) and 40 Gauteng-based contractors who benefited from a tender involving the supply of personal protective equipment (PPE) and services. during the Covid-19 pandemic. .

The court will meet at the Gauteng High Court in Johannesburg.

The arguments follow the urgent request of the SIU, which led to the freezing of R38.7 million in the bank accounts of the contractors.

News24 previously reported that the SIU obtained an interim order against entities linked to a tender for PPE from the Gauteng health department that was allegedly obtained in an irregular manner.

These included accounts linked to Ledla Structural Development, Royal Bhaca Projects and Mediwaste.

READ | SIU Special Court Freezes Accounts Related to Irregular PPE Bidding in Gauteng, Blocks Pension

Bhaca Projects is owned by Madzikane ll Thandisizwe Diko, the husband of President Cyril Ramaphosa’s spokesperson Khusela Diko.

The SIU argued that Ledla Structural Development (Pty) Ltd was awarded a contract for the supply of Covid-19 items, and that the tender was awarded illegally, irregularly, and corruptly and at prices that were vastly inflated above prices. related to the market.

It is also alleged that Ledla transferred a large portion of the proceeds he received to the bank accounts of various other entities and individuals.

In a statement, the court said Tuesday’s proceedings are aimed at determining whether the interim order should be final.

The interim order also prohibited the Government Employees Pension Fund (GEPF) from giving pension benefits to the department’s former chief financial officer, Mantsu Kabelo Lehloenya.

Lehloenya is accused of having signed irregular PPE contracts worth R2 billion.

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