Gauteng Health PPE contract declared invalid and unlawful, service provider ordered to pay back profit earned from R113.2 million contract

Summary:

The Special Investigating Unit (SIU) has obtained an order from the Special Tribunal declaring a R113.2 million personal protective equipment (PPE) contract between the Gauteng Department of Health and LNG as invalid and unlawful. The contract was awarded for the supply of N95 masks, surgical masks, and surgical gloves. The SIU investigation found that the competitive bidding process was not followed, and the contracted prices were high. Additionally, LNG was not registered on the government's Central Supplier Database at the time of the contract. The Tribunal has ordered LNG to pay back all profits earned from the contract and submit audited statements within 30 days. The SIU has also been ordered to file an expert report on the reasonableness of the income and expenses set out in LNG's statements.