Father and daughter arrested over PPE fraud in Eastern Cape

The Special Investigating Unit (SIU) on Thursday welcomed the arrest of Makhonzandile Lukhope and his daughter Naledi Lukhope in connection with personal protective equipment (PPE) tender fraud.

They were arrested by the Hawks on Wednesday on charges of fraud, forgery and uttering to the value of R4.3m related to the PPE tenders awarded by the Eastern Cape department of education under the company names Amabongwe Building and Civil Contractors CC and Tsunami Civils.

The pair appeared in the Zwelitsha magistrate’s court, where Makhonzandile was released on bail of R4,000 and his daughter R2,000.

The matter was postponed to August 19 and has been moved to the East London regional court.

“The arrests follow an SIU investigation authorised by proclamation R23 of 2020 by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to PPE procurement together with the conduct of state employees,” the SIU said.

The SIU said its investigation revealed that the father, through his company Amabongwe, allegedly committed fraud by misrepresentation and with an intention to defraud the department.

He allegedly unlawfully submitted a contract of lease which had the effect of misrepresenting that Amabongwe was operational in the Eastern Cape and had a business in the province. This led to the provincial education department awarding a RI.9m contract to Amabongwe.

“Mr Lukhope also failed to disclose interest in Tsunami Civils, which belongs to his daughter, Miss Lukhope.”

The SIU  investigation also revealed that Naledi Lukhope, through her company Tsunami Civils, allegedly misrepresented and defrauded the provincial education department.

The SIU said through the alleged deceit, her company received a payment of R2.4m.

The SIU said all tenders awarded to the Lukhopes were restricted to businesses operating in the Eastern Cape.  

“In line with the Special Investigating Units and Special Tribunals Act, the SIU referred evidence pointing to criminal conduct that was uncovered during the investigation to the attention of the National Prosecuting Authority for further action,” SIU spokesperson Kaizer Kganyago said.

TimesLIVE

Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.