The Asset Forfeture Unit has seized various assets and properties valued at approximately R52.6 million in an alleged PPE corruption case. 

SENIOR MANAGEMENT INVOLVED

The assets and properties that were seized today are linked to 22 senior management officials, service providers, and entities involved in an alleged corruption network within the Mpumalanga Department of Public Works. According to SIU spokesperson Kaizer Kganyago, the seizure follows a preservation court order from the High Court obtained by the Asset Forfeiture Unit (AFU). Kganyago said the order allowed them to seize various assets in Mpumalanga, Gauteng, North West and the Western Cape provinces associated with personal protective equipment (PPE) corruption. "The operation included serving orders at 34 locations and capturing inventories of 29 properties, 31 vehicles and a boat trailer. The court order freezes properties such as houses, electronics, cars, household items, jewellery, arms, ammunition, bank accounts, salaries and bail monies. All internet banking privileges will be removed from the accused as of 23 July 23," he said. 

SUPPLIERS DID NOT DELIVER SERVICES 

Kganyago also said that the order restrains some individuals and a number of companies from doing business with the department. "The SIU's investigation into PPE contracts related to the Covid-19 pandemic revealed that senior management officials awarded multi-million Rand Covid-19 PPE tenders to suppliers who did not deliver the services. These suppliers paid substantial kickbacks to the senior management officials and their family members in different ways," he added. The investigations also uncovered multiple instances of corruption, fraud, theft and money laundering committed by senior managers and service providers. The officials and service providers now face criminal charges and they will appear in the Commercial Crimes Court on charges of corruption, fraud and money laundering. Kganyago said President Cyril Ramaphosa directed the SIU in terms of Proclamation R23 of 2020 to investigate allegations of corruption, maladministration, malpractice, and payments made by state institutions relating to PPE procurement and the conduct of state employees.