The Special Investigating Unit (SIU) has welcomed the judgment of the Pretoria high court dismissing the application by businessman Hamilton Ndlovu and his associated companies to reinstate their lapsed appeal against the Special Tribunal’s order of June 7 2022.
“The dismissal confirms that Ndlovu and his entities have no prospects of success in challenging the Special Tribunal’s findings, which set aside unlawful personal protective equipment (PPE) contracts awarded by the National Health Laboratory Service (NHLS) and directed repayment of R158m,” the SIU said in a statement on Wednesday.
It said the appeal against the judgment of Judge Lebogang Modiba had lapsed due to the failure to act within the prescribed timelines, and the appellants’ explanation for the delays was found to be superficial, contradictory and dishonest.
Between March and April 2021, the NHLS awarded 19 contracts for PPE worth R172m to companies controlled by Ndlovu. However, only R13.8m of the allocated funds was used for the procurement of PPEs, with the remainder being diverted for Ndlovu’s personal enrichment.
“Evidence presented in the case (before the tribunal) revealed that Mr Ndlovu used multiple fronting companies to exploit emergency procurement processes fraudulently during the Covid-19 pandemic,” the SIU said.
The SIU’s investigation found that almost 90% of the NHLS funds were diverted to Ndlovu and his family for luxury assets, including cars, houses and investments, rather than being used for the intended PPE supply.
In 2022, the Special Tribunal declared the contracts unlawful, set them aside and ordered the repayment of R158.8m.
After the tribunal order, Ndlovu and his companies attempted to file an appeal but failed to action it within the required timeframe.
Their subsequent application for condonation and reinstatement of the appeal was dismissed by the high court, in a judgment by judge Selby Baqwa, with acting judge Johanna Leso concurring, on February 2.
Baqwa confirmed that Ndlovu and his companies had no prospects of success in overturning the Special Tribunal’s ruling.
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