Judge dismisses Pro Secure’s objections and orders it to pay costs
06 August 2024 - 13:19
by Tania Broughton
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A company accused of unlawfully benefiting from a multimillion-rand contract to supply personal protective equipment (PPE) during the Covid-19 pandemic, has failed in a bid to overrule a summons issued against it by the Special Investigating Unit (SIU) to recover the money.
Pro Secure raised several objections to the formulation of the case against it in the papers, but Special Tribunal judge Kate Pillay has dismissed the company’s objections and ordered the company to pay the costs.
The SIU investigation uncovered irregularities in the Limpopo department of health’s appointment of service providers, including Pro Secure, Clinipro and Ndia Business Trading, which resulted in about R182m irregular and wasteful expenditure. The SIU initiated action against Pro Secure, alleging the company had made “secret profits”; it also instituted civil proceedings against the former head of health in the province, Dr Thokozani Florence Mhlongo.
In October 2022, the SIU secured an order from the Special Tribunal, effectively freezing Mhlongo’s pension fund until the outcome of the civil action against her. Mhlongo resigned in June 2022 while facing disciplinary charges.
In its application to the tribunal, Pro Secure challenged the SIU’s legal standing and that the Limpopo health department was not a party to the SIU action. Pro Secure also claimed that there was no allegation that its bid for the contract was not lawful.
Pillay found there was no substance to any of the company’s arguments.
She said the particulars of claim in the civil action set out how Pro Secure had received a payment “significantly exceeding their initial bid”.
She said that, according to the SIU, the request for quotation sent by the department was for 5,000 automated hand sanitisers. Pro Secure had submitted a quote for 5,000 white electronic hand disinfectant dispensers and for 5,000 liquid sanitisers, the total amount being just more than R7m. Ultimately, the company had delivered 30,000 dispenser holders at R420 per unit and 900,000l of hand sanitiser at R170/l and had been paid almost R162m.
In a statement, SIU spokesperson Kaizer Kganyago said: “This ruling supports the SIU’s stance on the irregular procurement of PPE by the Limpopo department of health during the pandemic.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Covid-19 PPE supplier loses court bid
Judge dismisses Pro Secure’s objections and orders it to pay costs
A company accused of unlawfully benefiting from a multimillion-rand contract to supply personal protective equipment (PPE) during the Covid-19 pandemic, has failed in a bid to overrule a summons issued against it by the Special Investigating Unit (SIU) to recover the money.
Pro Secure raised several objections to the formulation of the case against it in the papers, but Special Tribunal judge Kate Pillay has dismissed the company’s objections and ordered the company to pay the costs.
The SIU investigation uncovered irregularities in the Limpopo department of health’s appointment of service providers, including Pro Secure, Clinipro and Ndia Business Trading, which resulted in about R182m irregular and wasteful expenditure. The SIU initiated action against Pro Secure, alleging the company had made “secret profits”; it also instituted civil proceedings against the former head of health in the province, Dr Thokozani Florence Mhlongo.
In October 2022, the SIU secured an order from the Special Tribunal, effectively freezing Mhlongo’s pension fund until the outcome of the civil action against her. Mhlongo resigned in June 2022 while facing disciplinary charges.
In its application to the tribunal, Pro Secure challenged the SIU’s legal standing and that the Limpopo health department was not a party to the SIU action. Pro Secure also claimed that there was no allegation that its bid for the contract was not lawful.
Pillay found there was no substance to any of the company’s arguments.
She said the particulars of claim in the civil action set out how Pro Secure had received a payment “significantly exceeding their initial bid”.
She said that, according to the SIU, the request for quotation sent by the department was for 5,000 automated hand sanitisers. Pro Secure had submitted a quote for 5,000 white electronic hand disinfectant dispensers and for 5,000 liquid sanitisers, the total amount being just more than R7m. Ultimately, the company had delivered 30,000 dispenser holders at R420 per unit and 900,000l of hand sanitiser at R170/l and had been paid almost R162m.
In a statement, SIU spokesperson Kaizer Kganyago said: “This ruling supports the SIU’s stance on the irregular procurement of PPE by the Limpopo department of health during the pandemic.”
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