Ndlovu ordered to ‘Pay Back the Money’

Siyabonga Sithole

Flamboyant businessman, Hamilton Ndlovu has been ordered to pay back the money earned by his company from invalid and irregular PPE tenders.

Ndlovu is accused of corruption emanating from the PPE tender in which eight of his companies were used as a front to fraudulently provide protective equipment to the National Health Laboratory Services (NHLS) in 2020.

This follows an investigation by the Special Investigations Unit probe which found that Ndlovu had benefited from 19 personal protective equipment tenders amounting to R172 million which were awarded by National Health Laboratory Services (NHLS).

On Tuesday the Special Tribunal set aside the contracts and ordered that Mr Ndlovu and associated companies pay back R158 million with interest while also ordering that frozen properties and funds held by Ndlovu, Zaisan Kaihatsu and Bugatti Security Services and Projects to the value of R42 million be forfeited by the state.

Furthermore, the Special Tribunal urged NHLS to invoke section 15 if the Preferential Procurement Policy Framework Act to list the Bugatti Security Services and Projects, Hamilton Ndlovu Holdings, Hamilton Projects CC, Mok Plus One Pty Ltd, Abomphetha PTY LTD, Feliham PTY LTD and Kgadumo Mokone Trading Enterprises PTY LTD, their directors and shareholders and Luiborn Dorn Ndlovu in his capacity as a director in the Joritans Logistics PTY LTD on the database of restricted suppliers.

This investigation is part of the SUI's investigation into allegations of corruption in which eight companies directly and indirectly linked to Ndlovu had obtained contracts worth over R172 million from the NHLS PPE tenders.

According to the statement issued out by the SUI, the investigations directorate acted in terms of Proclamation if R.23 of 2020, which is directed by President Cyril Ramaphosa to investigate allegations of corruption., malpractice and mal-administration and irregularities in the procurement of goods and services during the COVID-19 state of disaster.

The SUI says its investigation established that these contracts were obtained by abusing the emergency procurement procedures that were adopted by the NHLS in order to adequately respond to the COVID-19 pandemic in the first half of 2020.

In its investigation, the SIU says it obtained and analysed bank statements of the front companies and those of Mr Ndlovu and other companies and individuals linked to Ndlovu.

" The analyses showed that, with the exception of an amount of about R15 million that appears to have been used for the purchase of PPE, the funds received from NHLS were not used to obtained supplies of PPE in order to deliver upon the contracts to the NHLS. Instead, the vast majority of the funds (87.87%) flowed to Mr Ndlovu for his own use," the statement of the SIU says.

" Eight companies obtained contracts to supply PPE to the NHLS during this period; which according to the investigation, were all linked to Ndlovu adding that Ndlovu was the controlling mind if all the front companies as well as the sole direct and indirect beneficiary if the funds flowing to them from the payments made by NHLS.

"The links and interrelationships between front companies and the fact that they were all controlled by Ndlovu were not disclosed to the NHLS.

The companies operated jointly as part of an unlawful scheme directed by Ndlovu and under the pretence that they were independent entities.

Instead of operating at arm's length and in competition with each other to supply PPE to NHLS at the best available prices, the companies were a front whereby Ndlovu could obtain multiple contracts from the NHLS at excessive prices without revealing his involvement in each of them.