Special Tribunal Invalidates R257M PPE Contract Awarded to Nkhane Projects

The SIU has hailed the judgement as a significant step toward accountability and combating corruption in PPE procurement during the COVID-19 pandemic.

The Special Tribunal has invalidated a R257 million COVID-19 personal protective equipment (PPE) contract awarded by the Gauteng Department of Health (GDoH) to Nkhane Projects and Supply. This ruling follows an investigation by the Special Investigating Unit (SIU), which found that the contract was awarded outside of a competitive bidding process and did not comply with the Public Finance Management Act (PFMA).

The SIU’s investigation revealed that Nkhane Projects had submitted an unsolicited proposal, bypassing normal procurement procedures and failing to obtain the necessary approvals for deviations from these procedures. As a result, the SIU sought to have the contract overturned.

The Tribunal has ordered Nkhane to provide audited financial statements within 30 days, detailing income and expenses related to the PPE delivered under the invalidated contract. These statements must be supported by expert reports. Nkhane is also required to cover the SIU’s legal costs, including those for two counsels if applicable.

This judgement is expected to conclude a related High Court case in which Nkhane had sought R89,350,280.10 from the GDoH. This amount included R60,863,045.90 for goods delivered but unpaid for, and R28,487,234.20 for goods ordered but not accepted. The High Court case was stayed pending the outcome of the Tribunal decision.

The SIU has hailed the judgement as a significant step toward accountability and combating corruption in PPE procurement during the COVID-19 pandemic.