Gauteng PPE tender: Tribunal sets aside contract linked to firm of Khusela Diko's husband, Madzikane

• The controversial Gauteng PPE tender awarded to Ledla Structural Development and three others has been set aside, reviewed and cancelled.
• A tribunal ruled that money held in the bank accounts of Ledla Structural Development, Rhulani Mboweni Lehong and Kgodisho Norman Lehong be forfeited to the State.
• Judge Billy Mothle has also ruled that an interim interdict prohibiting the payment of pension and retirement benefits to former CFO Kabelo Mantsu Lehloenya be extended.

The controversial Gauteng PPE tender awarded to Ledla Structural Development and three others has been reviewed, set aside and cancelled - and the funds forfeited to the State.

The Special Investigating Unit (SIU) earlier found that contracts were irregularly awarded to Ledla Structural Development, which is a "proxy" for Royal Bhaca Projects, and is owned by presidential spokesperson Khusela Diko's husband, Madzikane ll Thandisizwe Diko.

The multimillion-rand personal protective equipment (PPE) tender was issued by the Gauteng health department.

The Special Tribunal ruled on Thursday that money held in the bank accounts of Ledla Structural Development and three other respondents be forfeited to the state.

Judge Billy Mothle also ruled that an interim interdict prohibiting the payment of pension and retirement benefits to former chief financial officer Kabelo Mantsu Lehloenya be extended, pending the finalisation of action proceedings in the Special Tribunal.

Mothle made his ruling after the SIU on 19 August launched an urgent application before the Special Tribunal, wherein it sought urgent interim relief on three orders.

The first order was for the cancellation of a contract awarded to Ledla Structural Development.

The second order was for the preservation of specified amounts of money held in various banks - money which was distributed by Ledla.

Ledla had received a payment of R38.7 million from the department.

Order

"The third order sought to interdict the Government Employees Pension Fund from releasing the pension benefits in respect of Lehloenya, pending the outcome of civil proceedings.

"The Special Tribunal granted the interim order... calling upon all the 39 respondents to show cause on a return date, why the interim order should not be made final. Some of the respondents filed opposing affidavits while others notified the applicants that they will abide by the outcome of the proceedings," said Mothle.

Mothle also ordered that money held in the bank accounts of Ledla Structural Development, K Manufacturing (Pty) Ltd, Rhulani Mboweni Lehong and Kgodisho Norman Lehong under the preservation order were declared forfeit to the state.

Mothle also ordered for the dismissal of the preservation order over the money held in the bank accounts of BLSM Service (Pty) Ltd, Lloyd Mthobeki, Mpho Mafenyane, Api Property Group (Pty) Ltd, Boxlee (Pty) Ltd, and Angelic Juliana Groenewald.

"The SIU has been ordered, at its own costs, to appoint from the list of service providers to the Auditor-General, a firm of forensic accounting services to prepare a forensic report for submission to the Special Tribunal not later than 15 January 2021," said Mothle.

The SIU must analyse and reconcile the source documents, including invoices and delivery notes, issued and attached as evidence separately by each of the affected respondents against the amounts received between 3 and 5 August 2020 from either Ledla Structural Development and or any of the affected respondents.

"… Determine the difference between the prices charged by each of the respondents for the goods sold to the market as well as the recommended price list attached to the Treasury Notes.

"Upon receipt of the forensic accountant report and, on 16 January 2021, the affected respondents shall receive a copy thereof for comment to be delivered to the Special Tribunal on or before 22 January 2021.

"The rule nisi for the preservation order and forfeiture order as against the respondents is extended to 26 January 2021, for judgment. Costs pertaining to the remaining respondents will be determined on 26 January 2021," Mothle said.