DURBAN - A PIETERMARITZBURG-based company, Rosette Investments, must pay back R864 005 to the Special Investigating Unit (SIU) after it was irregularly awarded a tender to supply blankets intended for the homeless during the Covid-19 level 5 lockdown.
The Department of Justice Special Tribunal ordered the payment be made before Friday.
The SIU instituted civil proceedings in the Special Tribunal to review and set aside a R4 899 000 contract irregularly awarded to Rosette Investments by the KZN Department of Social Development. The contract was for the supply of 12 000 blankets.
The SIU approached the Tribunal in October 2020 to review and set aside four contracts awarded by Social Development to supply 48 000 blankets to the tune of more than R18 million. The money was part of the Covid-19 pandemic relief.
The Rosette Investments contract was the second of the four contracts that were successfully reviewed and set aside. The SIU investigation found that Rosette Investments had indeed delivered the blankets as per the terms of the irregular contract.
As a result, the SIU calculated the profit earned from the procurement contract by the investment company and demanded it be paid back.
The company was also ordered to pay the legal costs of the SIU, including the costs of counsel, consultations with counsel, opinions and advice sought and drafting of the application documents.
Advocate Andy Mothibi, head of the SIU, said this was a continuation of the implementation of the SIU investigations outcomes and consequence management to recover financial losses suffered by government departments due to the irregular awarding of personal protective equipment (PPE) contracts.
In August 2020, the KZN Department of Social Development suspended officials implicated in the procurement of blankets and PPEs.
Disciplinary action was taken against the acting head of the department, acting deputy director-general, chief financial officer, acting supply chain manager, cluster chief directors, and supply chain management officials.
zainul.dawood@inl.co.za
Daily News