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The investigation revealed a “blatant and unbridled disregard” of the law and an “insatiable pursuit of personal enrichment.”
South African special investigators said about $ 17 million in coronavirus funding was diverted last year through corruption, fraud and inflated prices for protective equipment supplied to hospitals and government departments.
Last year, President Cyril Ramaphosa ordered an investigation following revelations that government contracts were awarded to individuals and companies with political connections.
In a televised speech Friday, Chief Investigator Andy Mothibi said that as of November a special court had been asked to recover a total of $ 17.3 million in taxpayer money.
The investigation revealed a “blatant and unbridled disregard” of the law and an “insatiable pursuit of personal enrichment,” said Mothibi, who heads the government’s Special Investigation Unit (SIU).
Investigators unearthed a series of irregularities by state departments. They included overpaying for goods, incorrect product specifications, and awarding contracts to companies not registered in the government’s central supplier database.
“We need to recover money and return that money to the state,” he said, adding that “in some cases political pressure played a role in the acquisition” of protective equipment.
The SIU has asked the courts to freeze the pensions and assets of the entities and individuals involved in the robberies.
Many suppliers did not disclose their close relationships with officials responsible for awarding contracts, and others used front companies to secure deals.
Nearly 40 cases will be further investigated for possible prosecution on charges of fraud, corruption and financial misconduct.
According to the National Treasury, state institutions spent a total of $ 2 billion on COVID-related purchases between April and November last year, of which $ 889 million is now under investigation.
‘Risks’ of vaccines
South Africa has recorded more than 1.46 million cases of coronavirus, more than 45,600 of which have been fatal, making it the most affected country in Africa.
The spread of infections in recent months has been fueled by a more contagious variant of the virus.
As the country prepares to launch coronavirus vaccines this month, Health Minister Zweli Mkhize promised to limit opportunities for fraudulent behavior.
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