The Special Investigating Unit (SIU) has secured a court order for the recovery of R2,427,333.30, following a Special Tribunal judgment that declared a multimillion-Rand Personal Protective Equipment (PPE) contract unlawful.
The Special Tribunal ordered Nozihle Construction and Projects CC to repay this amount to the Mpumalanga Department of Health. The order, handed down on 29 September 2025, relates to an April 2020 contract for the supply of 100,000 3-ply surgical masks, valued at R2,645,000.00.
The Tribunal found that the contract was unlawful and void because Nozihle Construction and Projects CC was not licensed as a distributor of medical devices with the South African Health Products Regulatory Authority (SAHPRA), as mandatorily required by the Medicines and Related Substances Act, 1965.
The order affirms the SIU's argument that any transaction performed in contravention of statutory prohibition is void. The recoverable amount of R2,427,333.30 represents the difference between the price paid by the Department and the average price for masks on the National Treasury's transversal contracts.
In addition to the financial recovery, the Special Tribunal set aside the contract and ordered Nozihle Construction and Projects CC to pay the SIU’s costs, including the costs of two counsel.
This judgment is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the COVID-19 national state of disaster. It sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the state, and the SIU will use its litigation powers to the fullest to ensure such funds are returned.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action. Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.
Enquiries:
Kaizer Kganyago
Spokesperson: Special Investigating Unit
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za
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