The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority, along with the Special Investigating Unit (SIU) and the Directorate for Priority Crime Investigation (Hawks), has seized assets and properties valued at approximately R52.6 million linked to an alleged corruption network within the Mpumalanga Department of Public Works.
This operation follows a preservation court order from the High Court of South Africa, Mpumalanga Division, Mbombela, which permits the AFU, SIU, and Hawks to seize various assets across Mpumalanga, Gauteng, the North West, and Western Cape provinces related to personal protective equipment (PPE) corruption.
The operation involved serving orders at 34 locations, capturing inventories of 29 properties, 31 vehicles, and a boat trailer. The court order freezes assets such as houses, electronics, cars, household items, jewelry, arms, ammunition, bank accounts, salaries, and bail monies. All internet banking privileges for the accused will be removed as of July 23, 2024.
These seized assets belong to employees of the Mpumalanga Public Works and service providers working with the department. The order is grounded in Section 26 of the Prevention of Organised Crime Act, 121 of 1998, which aims to prevent individuals from dissipating their assets prior to a confiscation order following a conviction.
The SIU’s investigation into PPE contracts related to the COVID-19 pandemic revealed that senior management officials awarded multi-million Rand COVID-19 PPE tenders to suppliers who failed to deliver the services. These suppliers reportedly paid substantial kickbacks to the officials and their family members.
The investigation uncovered numerous instances of corruption, fraud, theft, and money laundering among senior managers and service providers involved in procuring PPE disinfection services during the pandemic. Following these findings, the SIU referred criminal evidence to the NPA and Hawks, leading to the arrest of department officials and service providers.
The implicated officials and service providers now face criminal charges related to PPE procurement and are set to appear in the Commercial Crimes Court on charges of corruption, fraud, and money laundering. President Cyril Ramaphosa has directed the SIU to investigate allegations of corruption and malpractice in relation to PPE procurement and the conduct of state employees.