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Hamilton Ndlovu banned from doing business with state as Special Tribunal declares lucrative contracts unlawful

Assets including forfeited vehicles to be auctioned

07 June 2022 - 14:04
Hamilton Ndlovu's fleet of luxury cars. File photo.
Hamilton Ndlovu's fleet of luxury cars. File photo.
Image: Screengrab via Twitter

The Special Tribunal has set aside and declared unlawful contracts worth more than R150m awarded to controversial businessman Hamilton Ndlovu and companies related to him.

Ndlovu and his companies have also been blacklisted from doing business with the state in terms of section 15 of the Preferential Procurement Policy Framework Act.

The SIU and the National Health Laboratory Services (NHLS) were initially trying to recoup R172m from the businessman which they alleged was received through a fraudulently awarded tender to supply personal protective equipment.

Special Tribunal judge Lebogang Modiba calculated up to R158m was liable to be repaid to the state.

“The NHLS is urged to invoke section 15 of the Preferential Procurement Policy Framework Act to list the fourth, ninth, 10th, 11th, 12th, 13th, 15th and 16th respondents, their directors and shareholders and Luiborn Dorn Ndlovu in his capacity as a director in the 14th respondent on the database of restricted supplies,” the ruling states.

Hamilton Ndlovu.
Hamilton Ndlovu.
Image: TWITTER

Nineteen purchase orders ranging between R2m and R12.3m issued by the NHLS to the companies linked with Ndlovu between March 26 and May 8 2020 were declared invalid and unlawful.

Ndlovu leapt into the public domain in May 2020 after posting video footage online and boasting about buying a fleet of luxury vehicles worth about R11m. They included three Porsches, a Jeep and a Lamborghini Urus SUV.

“The first, fourth, ninth, 10th and 13th respondent are declared liable to the NHLS to repay and directed to pay the sum of R172,742,175 less R13,891,253 = R158,850,921, including interest at the prescribed rate calculated from the date the NHLS made payment for the orders,” the order states.

The Special Tribunal also ruled that a number of assets, including funds that have already been preserved, be forfeited to the state.

The SIU and the NHLS were last year granted an order by the Special Tribunal to freeze Ndlovu's assets, of which only R42m could be frozen. 

Four companies were also declared liable to the NHLS to repay amounts ranging from R5,000 to R157,000 that were paid into their accounts from the proceeds of the unlawful contracts.

The court ordered that the forfeited assets, including vehicles, would be released, transferred to and vest in the curator, who would “as soon as practically possible but not later than 120 court days after the granting of this order sell the properties by public auction or private treaty at market price and disburse the net sale proceeds to a bank account designated by the NHLS”.

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