Following a preservation court order acquired by the Asset Forfeiture Unit (AFU) from the High Court of South Africa, the AFU, working in tandem with the Special Investigation Unit (SIU) and the Directorate for Priority Crime Investigation (Hawks) successfully seized various assets and properties worth around R52.6 million.
The court ruling authorised organised crime units to seize various assets and properties associated with personal protective equipment (PPE) corruption in Mpumalanga, Gauteng, the North West, and the Western Cape.
According to SIU’s statement, the assets and properties are linked to 22 senior management personnel, service suppliers, and businesses involved in an alleged corruption network with the Mpumalanga Department of Public Works.
“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 July 23, 2024.
“The seized assets and frozen properties belong to employees of the Mpumalanga Public Works, while others belong to service providers doing business with the department,” the statement revealed.
Prior to the legal action pursued by AFU, the SIU conducted an investigation “into PPE contracts related to the COVID-19 pandemic and it revealed that senior management officials awarded multi-million Rand COVID-19 PPE tenders to suppliers who did not deliver the services.”
The statement states that, “These suppliers paid substantial kickbacks to the senior management officials and their family members in different ways. The investigation uncovered multiple instances of corruption, fraud, theft, and money laundering committed by senior managers and service providers involved in procuring PPE disinfection services during the COVID-19 period.”
After the SIU referred criminal evidence to the National Prosecution Authority (NPA) and Hawks for further investigation, department officials and service providers were arrested and charged with PPE procurement. They are now appearing in the Commercial Crimes Court on allegations of corruption, fraud, and money laundering.
