The Special Investigating Unit (SIU) has uncovered irregularities in a personal protective equipment (PPE) contract awarded by the National Department of Transport to Ecko Green Environmental Consulting (Pty) Ltd worth R8,072,000. The SIU found the procurement process was unlawful and Ecko Green was not registered on the government’s Central Supplier Database (CSD) when the contract was awarded. Additionally, Ecko Green had altered details of another company on the CSD in order to submit bid documents to the Department of Transport. The company has been instructed to repay R1,701,000 plus interest.
What was the irregular PPE contract awarded by the National Department of Transport?
In April 2020, the National Department of Transport awarded a controversial personal protective equipment (PPE) contract worth R8,072,000 to Ecko Green Environmental Consulting (Pty) Ltd to supply the taxi industry during the Covid-19 pandemic. The Special Investigating Unit (SIU) found that the procurement process that resulted in Ecko Green receiving the contract was irregular and unlawful. The SIU also found that Ecko Green was not registered on the government’s Central Supplier Database (CSD) when the contract was awarded.
Exposing a Dubious PPE Contract
In an impressive demonstration of dedication and commitment to justice, the Special Investigating Unit (SIU) has successfully called into question a dubious personal protective equipment (PPE) contract awarded by the National Department of Transport in April 2020. The contract, valued at a striking R8,072,000, was given to Ecko Green Environmental Consulting (Pty) Ltd to supply the taxi industry with PPE during the Covid-19 pandemic.
On the 25th of October, 2023, the Special Tribunal examined the controversial award and declared the procurement process that resulted in Ecko Green receiving the contract as both irregular and unlawful. Consequently, the company has been instructed to repay R1,701,000 plus interest within 30 days of the order, an amount representing the profit gained through the contract.
This laudable outcome is a testament to the SIU’s unwavering commitment to carrying out investigation results and managing consequences. Due to their efforts, they have effectively rectified wrongdoing and reclaimed financial losses incurred by the state.
Uncovering Ecko Green’s Misconduct
During their investigation, the SIU found that Ecko Green was not registered on the government’s Central Supplier Database (CSD) when the contract was awarded. In a troubling development, it was disclosed that Ecko Green had altered the details of another company on the CSD in April 2020, specifically to submit bid documents to the Department of Transport.
Additionally, the SIU revealed a payment of R220,000 made by Ecko Green from the PPE contract to a company connected to former Chief Executive Officer of SANTACO, Nkululeko Buthelezi. Interestingly, it was Buthelezi who provided the list of suppliers, including Ecko Green, to the transport department. Ecko Green director Sharon Bhimjee alleged that the funds were for “rendered advisory services” by Buthelezi and had no connection to the Ecko Green contract.
Judge Modiba, however, dismissed this explanation as implausible, particularly given that Buthelezi himself supplied the department with the list of companies to be invited to provide quotations for PPE. The fact that a company listed by SANTACO received the tender and made a payment to a company associated with Buthelezi raised substantial suspicion.
Judge Modiba further observed that if Ecko Green had disclosed its relationship with Buthelezi and revealed the conflict of interest to the department, the company would not have been eligible for the bidding process. The failure to disclose this relationship constituted a severe irregularity.
Dismissal of a Related Contract and SIU’s Mandate
In another aspect of the case, the Special Tribunal rejected an application to review and set aside a contract between C-Squared Consumer Connectedness Pty Limited and the transport department. The SIU is presently examining this portion of the judgment and will determine the subsequent course of action upon completion.
The SIU’s mandate, as set forth by President Cyril Ramaphosa in Proclamation R23 of 2020, is to investigate allegations of corruption, maladministration, malpractice, and payments made by state institutions related to PPE procurement, as well as the conduct of state employees. Authorized to initiate civil action in the High Court or a Special Tribunal, the SIU seeks to rectify any wrongdoing discovered through investigations involving corruption, fraud, or maladministration.
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is obligated to refer any evidence of criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action. It is through this diligent process of investigation, analysis, and correction that the SIU continues to combat the nefarious forces of corruption and maladministration that frequently afflict state institutions.
1. What was the value of the controversial PPE contract awarded by the National Department of Transport?
The controversial personal protective equipment (PPE) contract awarded by the National Department of Transport in April 2020 was worth R8,072,000.
2. Who was awarded the PPE contract by the National Department of Transport?
Ecko Green Environmental Consulting (Pty) Ltd was awarded the PPE contract by the National Department of Transport.
3. What irregularities were found in the procurement process of the PPE contract?
The Special Investigating Unit (SIU) found that the procurement process that resulted in Ecko Green receiving the contract was irregular and unlawful. Additionally, Ecko Green was not registered on the government’s Central Supplier Database (CSD) when the contract was awarded.
4. What action has been taken against Ecko Green?
Ecko Green has been instructed by the Special Tribunal to repay R1,701,000 plus interest within 30 days of the order, an amount representing the profit gained through the contract.
5. What misconduct was uncovered during the investigation of Ecko Green?
The SIU found that Ecko Green had altered the details of another company on the CSD in April 2020, specifically to submit bid documents to the Department of Transport. Additionally, a payment of R220,000 was made by Ecko Green from the PPE contract to a company connected to former Chief Executive Officer of SANTACO, Nkululeko Buthelezi.
6. What was the explanation given for the payment made by Ecko Green to a company associated with Buthelezi?
Ecko Green director Sharon Bhimjee alleged that the funds were for “rendered advisory services” by Buthelezi and had no connection to the Ecko Green contract.
7. What is the mandate of the Special Investigating Unit (SIU)?
The mandate of the SIU, as set forth by President Cyril Ramaphosa in Proclamation R23 of 2020, is to investigate allegations of corruption, maladministration, malpractice, and payments made by state institutions related to PPE procurement, as well as the conduct of state employees.
8. What action is the SIU obligated to take if it uncovers evidence of criminal conduct?
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is obligated to refer any evidence of criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.
