A year after Free State Treasury demoted the then Chief Financial Officer, Monaheng Mokoena to Chief Director level and moved him Free State Health for his involvement in the PPE scandal, the Special Investigative Unit (SIU) has now found evidence that Mokoena may have committed fraud. This is contained in the 737 page report SIU handed to president Ramaphosa.
In February 2021, the SIU fingered Mokoena in the irregular awarding of tenders for personal protective equipment (PPE) in the province and recommended he be charged internally and criminally but was moved to Free State Health and demoted instead.
He resigned in June 2021 without being charged, four months after the SIU report was issued.
For context’s sake: the procurement of PPE in the Free State was centralised to the provincial Finance Department after the country found itself in a state of emergency due to the Coronavirus outbreak. Prospective suppliers were urged to get themselves registered on the department’s Covid-19 database. This is how this department became embroiled in the scandal.
In late 2020, several media houses reported on allegations that allies of Magashule in the Free State, including one of his sons and scored PPE tenders irregularly but the SIU found no evidence. These allies included the owner of an unregistered Bloemfontein car wash and chisa nyama; and the organiser of the largest music and cultural festivals in the province. The SIU has found in its latest report on all cases that there is no evidence the associates received the lucrative multi-million rand tenders owing to their close relationship to Magashule. The value of the tenders go up to over R 4 million in one instance.
Now two of the suppliers, K-L-A-K Trading CC and Wingilux (PTY) LTD were however found to have not been registered with the South African Revenue Service (Sars) as Valued Added Tax (Vat) vendors and it is this that could be their downfall. The SIU says it has reported that matter to SARS.
K-L-A-K and Winglux were awarded R4 374 300 and R7 875 651 contracts respectively, way above R1 million threshold.
With regard to C-Squared, the SIU found evidence that former Treasury CFO, Monaheng Mokoena and C-Squared (PTY) LTD CEO, Ben Moseme may have committed that fraud by misrepresentation to Godfrey Mahlatsi (HoD Treasury), regarding the quotations submitted and goods that were procured in respect of SCMQ609/2020/2021 and that it was not equitable, transparent and cost effective. The tender was worth R5 132 071.
In respect of SCMQ3/2010/2121 in which C-Squared was awarded a tender worth R6 051 415 the SIU found that Monaheng and Moseme may have committed fraud by making a misrepresentation to Mahlatsi regarding the pricing of the coveralls and the FFPs N95 masks, when it was stated negotiations that the pricing was in excess of National Treasury.
Its not clear at this stage how much C-Squared priced the coveralls and FFPs N95 masks.
As we previously reported the Special Tribunal sat In Booysen on the 24 August 2021 that the SIU sought an order declaring the surgical gowns be set aside and state recoup R39 150 739 the latest report show the SIU found evidence that surgical gowns delivered were not in compliance with technical specifications and 27 suppliers who provided incorrect gowns committed fraud by providing false addresses in bid documents.
It was also found all 30 suppliers of the surgical gowns contravened sections 14, 19 and 22c(6) of the medicines and related substance act, act 101 of 1965 which constitutes an offence in terms of section 29, and is punishable in terms of section 30 of the same act.
With regards to national Department of Transport, the SIU established the acting CFO and SCM Director did not follow emergency procurement processes when awarding C-Squared a contract to the value of R15 million.
According to SIU, Alec Moemi, Director General at Department of Transport gave SCM the name “C-Squared” because it had stock readily available, a notion SIU dismissed.
The SIU reccommends disciplinary action against Alec Moemi and will refer the matter to Special Tribunal to set aside the contract awarded to C-Squared and recover R15m.
The report was was welcomed by Health HOD, Godfrey Mahlatsi who said.
“We welcome the report of the SIU and we wish that the tribunal could also finalise its processes and issue out the verdict.”
The judgement in the Special Tribunal is reserved, it remains to be seen if Judge Lebogang Modiba will rule in favor of the plaintiff or defendants.
Phumudzo Sydney Mulafhi, Director at Fakatsimbi Advisory Service said the SIU have never lost a case.
“Since the reconfiguration of the Special Tribunal court based in Booysens the SIU have never lost a single case because forensic investigation conducted is evidence based.
Key mandate of the SIU is to refer matters to other law enforcement agencies for civil recovery and recommendations to the Hawks and NPA for criminal charges.”
He concluded, “The SIU through Asset Forfeiture Unit has to date preserved millions of rands.”
Free State Treasury MEC, Gadida Brown has been vindicated as allegations against that she influenced decisions were never supported by any evidence.
The suspended Secretary General of the ANC, Ace Magashule who was accused purely on influencing processes could not be reached for a comment after SIU cleared him.
This is a developing story
Ben Moseme owes us contractors in the building of his property at 241 Vallerie street, Vaalview Vanderbijlpark. He has two luxury cars that are worth more than R4 million rands parked at the same unfinished property. Contact us at 066 110 6996 for more information.
Morore you are a thief yourself! How on earth do you expect another thief to owe you anything. What goes around comes around.