Pretoria: The Special Investigating Unit (SIU) has obtained a court order to recover R2.4 million after a judgment ruled a multimillion-rand Mpumalanga Health Department personal protective equipment (PPE) contract unlawful.

According to South African Government News Agency, the order, issued by the Special Tribunal, mandates Nozihle Construction and Projects CC to return the funds pertaining to an April 2020 contract, which involved the supply of 100,000 3-ply surgical masks valued at approximately R2.645 million.

The tribunal concluded that the contract was unlawful and void because Nozihle Construction and Projects CC lacked the necessary license as a distributor of medical devices from the South African Health Products Regulatory Authority, as required by the Medicines and Related Substances Act of 1965.

The order supports the SIU’s position that any transaction conducted in violation of statutory prohibitions is void. The recoverable sum of R2,427,333.30 represents the difference between the department’s payment and the average price for masks listed on National Treasury’s transversal contracts, stated the SIU.

Additionally, the company is required to cover the legal costs incurred by the corruption-fighting unit’s counsel.

“This judgment is a crucial outcome of the SIU’s persistent efforts to reclaim public funds misappropriated during the COVID-19 national state of disaster. It delivers a strong message that suppliers failing to comply with essential legal requirements are not entitled to profit from the State. The SIU will fully exercise its litigation powers to ensure the return of such funds.”

In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal activity discovered during its investigation to the National Prosecuting Authority for further action, the SIU mentioned.