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R52 Million in Assets Seized in Major Crackdown on COVID-19 Corruption in South Africa

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MBOMBELA — In a significant operation against corruption linked to COVID-19 procurement, South African authorities have seized assets worth approximately R52.6 million. The operation targeted senior officials and service providers involved in corrupt activities within the Mpumalanga Department of Public Works.

According to South African Government News Agency, the Special Investigating Unit (SIU), and the Directorate for Priority Crime Investigation (Hawks), the seizure was enabled by a preservation court order from the High Court of South Africa, Mpumalanga Division. This order facilitated the confiscation of assets across Mpumalanga, Gauteng, the North West, and Western Cape provinces, linked to personal protective equipment (PPE) corruption scandals.

The joint operation involved actions at 34 locations, where inventories of 29 properties, 31 vehicles, and a boat trailer were cataloged. The court order has frozen assets including houses, electronics, cars, household items, jewelry, firearms, bank accounts, and even the salaries and bail monies of the accused. All internet banking privileges for the accused will be suspended starting July 23, 2024.

Individuals and entities restrained under the order include department officials such as Macdonald Sigudla, Dorries Mbatha, and Bandile Ngcobo, among others. Several service providers, including Maganeleni Trading and Projects and Thandolwam Transport and Projects, are also implicated.

The assets were seized under Section 26 of the Prevention of Organised Crime Act, which prevents those accused from dissipating assets ahead of potential confiscation upon conviction. This action follows an SIU investigation that uncovered that senior management officials had awarded multi-million Rand COVID-19 PPE tenders to suppliers who failed to deliver the promised services. These suppliers allegedly returned kickbacks to officials and their families.

Further investigations revealed extensive corruption, fraud, theft, and money laundering activities related to the procurement of PPE during the pandemic. The SIU, acting under the Special Investigating Units and Special Tribunals Act, referred the evidence to the NPA and Hawks, leading to the arrests of several implicated parties. These officials and service providers are slated to face charges in the Commercial Crimes Court for their roles in the corruption scandal.

This crackdown follows a directive from President Cyril Ramaphosa, who mandated the SIU to investigate corruption related to PPE procurement under Proclamation R23 of 2020.