Tribunal Declares R9 Million Mpumalanga PPE Contracts, Orders Repayment

In a landmark ruling aimed at enforcing financial accountability and curbing corruption linked to South Africa’s COVID-19 procurement processes, the Special Tribunal has set aside two personal protective equipment (PPE) contracts awarded by the Mpumalanga Department of Health. The contracts, collectively worth R9 million, were found to be unlawfully awarded to Vitae Zoe (Pty) Ltd, a private company contracted to supply infrared non-contact digital thermometers.

The decision followed a formal application by the Special Investigating Unit (SIU), the state’s leading anti-corruption body. The SIU sought to have the contracts declared invalid as part of its wider investigation into irregularities in public procurement during the COVID-19 pandemic.

Contracts Deemed Invalid After SIU Probe

The Tribunal’s decision invalidates two separate agreements awarded to Vitae Zoe:

• The first contract involved the supply of 3,000 infrared non-contact thermometers

• The second covered an additional 1,000 units, both acquired during the peak of the pandemic

The SIU’s investigation revealed that due process had not been followed, and that the contracts violated principles of fair, equitable, transparent, and competitive procurement as required by South Africa’s Public Finance Management Act (PFMA).

The judgment marks another key victory for the SIU in its ongoing mission to recover public funds misappropriated during South Africa’s emergency procurement period.

Tribunal Orders Repayment and Financial Accountability

In addition to nullifying the contracts, the Special Tribunal issued several accountability directives to Vitae Zoe:

• The company is required to submit audited financial statements for the 2020/2021 financial year to both the SIU and the Registrar of the Tribunal.

• Vitae Zoe must propose a repayment plan within 15 days of receiving a formal demand from the SIU.

• If the company fails to comply, the SIU is authorised to pursue further legal action to recover state funds.

• The Tribunal also ordered Vitae Zoe to pay the legal costs of the SIU’s application.

The SIU confirmed that it has received the financial statements and is currently assessing them to determine how much the company must repay to the state.

A Step Forward in Pandemic-Era Procurement Accountability

The SIU welcomed the ruling, describing it as a “crucial step in addressing corruption” and restoring public trust in government procurement processes. The judgment reinforces the state’s position that irregular contracts, especially those arising during national emergencies, will not go unchallenged.

This case forms part of a broader investigation mandated by President Cyril Ramaphosa under Proclamation R23 of 2020, which tasked the SIU with examining:

• Allegations of corruption

• Maladministration and malpractice

• Unlawful payments by state institutions relating to COVID-19 PPE procurement

• The conduct of government officials and suppliers involved in the process

In addition to civil recovery through the Special Tribunal, the SIU is authorised to refer any criminal conduct uncovered during its investigations to the National Prosecuting Authority (NPA) for potential prosecution.

Broader Impact of SIU Investigations into PPE Corruption

Since the proclamation, the SIU has unearthed multiple instances of irregular PPE procurement, with dozens of state departments and municipalities implicated in awarding contracts to unqualified or non-compliant suppliers. These contracts were often awarded without proper competitive bidding, with inflated prices, or without due diligence on suppliers' capacity.

The investigations have resulted in:

• Numerous civil recovery proceedings

• Referrals of criminal evidence to the NPA

• Disciplinary recommendations for state employees

• Asset forfeiture and blacklisting of corrupt vendors

The tribunal’s ruling against Vitae Zoe adds momentum to this campaign, sending a strong message that accountability does not end with the pandemic—and that legal processes will continue to root out wrongdoing and recover state resources.

Strengthening the Rule of Law

This latest ruling by the Special Tribunal serves as a powerful reminder of the state’s determination to rectify irregularities and ensure that public funds are used responsibly, especially during times of crisis. The SIU’s work not only seeks restitution but also aims to deter future misconduct and reinforce integrity within public sector procurement.

As more cases emerge from the SIU’s investigations, citizens and civil society will be watching closely to ensure that justice is served and that corruption—particularly when it endangers public health—is met with meaningful consequences.