PPE Gauteng scandal: Special Court orders companies to return money

A special court has issued an order on controversial PPE tenders.

• Several companies that received money from Ledla Structural Development were ordered to return the money to the state.
• This, after the PPE tender awarded to Ledla by the Gauteng Health Department, was reviewed and voided.
• The SIU discovered that Ledla was a representative of Royal Bhaca Projects, a politically connected company owned by Madzikane ll Thandisizwe Diko.

---

The Special Court ordered nearly two dozen companies that received money from the Gauteng Health Department through a personal protective equipment (PPE) tender awarded to Ledla Structural Development, return it to the state.

In December, the controversial PPE tender awarded to Ledla Structural Development and three other individuals was reviewed and subsequently shelved and canceled.

This followed the conclusions of the Special Investigation Unit (SIU) that the contracts were irregularly awarded to Ledla Structural Development, which is a “substitute” for Royal Bhaca Projects, a company owned by Madzikane ll Thandisizwe Diko, husband of presidential spokeswoman Khusela Diko.

READ | Bandile Masuku’s legal team argues that SIU’s findings are not ‘backed by a shred of evidence’

The multi-million dollar personal protection tender was issued by the province’s health department.

At the time, the court also ruled that money held in the bank accounts of Ledla Structural Development and three other defendants will be confiscated from the state.

On Thursday, the Special Court rendered another ruling, and Judge Billy Mothle ordered companies and individuals who received money from the health department through Ledla Structural Development to return the money.

The following companies and individuals were ordered to seize the money Ledla paid them, back to the Gauteng Health Department:

In terms of K Manfucaturing and Supply, the court found that the company had received R16.5 million from Ledla on 3 August last year and had paid R8 million to other companies and individuals on the same day by distribution.

“It was alleged that on August 7, 2020, he paid R8 5,000,000 for the goods to be delivered to the Health Department,” said Selby Makgotho, spokesman for the Special Court.

Payments

“The Special Court found no evidence of the payments to the companies and individuals and declared that the payments were the product of illicit activity and, as such, corrupt.”

The court also found that the R1 393,200 paid to Home Vision Projects (Pty) Ltd by K Manufacturing did not necessarily belong to the deliverables by purchase order from the Department of Health in Gauteng.

“The quantity is considered as the product of an illegal contract, no value is attached and the quantity is declared confiscated from the state.”

Mothle also dismissed retention requests for the following respondents:

“Judge Mothle ordered that the amounts held by the defendants in the bank accounts be released.”

The SIU has been ordered to pay the costs of each of these defendants, including attorneys’ costs where applicable.