He has been dead for two years, and yet an East London
businessman scored a personal protective equipment tender worth almost R1m from
the Eastern Cape health department.
Odwa KK Matshaya’s family was stunned by the appearance of
the dead man’s company on a list of more than 600 firms to have benefited from
the department’s R1.2bn Covid-19 procurement expenditure in the past three
months.
At the time of his death,
Matshaya was the sole director of 2KS Construction and Projects. According to the list, 2KS Construction and Projects
received R992,105.
Other Eastern Cape businessmen have also come forward to
disclose that while their companies’ names appear on the list of beneficiaries,
they were never awarded contracts by the health department.
The presence of these companies on the list raises further
questions about the procurement of PPE and other Covid-related services by the
provincial government.
The Special Investigations Unit (SIU) told parliament’s
standing committee on public accounts this week that it was investigating 352
recently awarded contracts in the Eastern Cape.
Matshaya’s relative, who asked to remain anonymous as he
works for a government entity, confirmed both his death and the presence of 2KS
Construction and Projects on the list.
“KK died two years ago and was the owner and sole director
of this company. This came as a shock to us but the family does not want to
talk more about this. This is not good at all — this is rot. Who did this and
for what good reason?” the man asked.
A health department insider told the Dispatch the
ratification of companies which did not receive tenders was the “tip of the
iceberg”, as there were other “ghosts companies” that had benefited.
“If you dig more, you will find there are ghost companies
that got paid millions of rand. Get their account numbers — you will be shocked
by who benefited. There are companies that were given appointment letters but
no work was given to them, yet their names appear on the provincial list as
companies that were awarded work,” said the official.
The Dispatch has discovered that on the provincial list, 17
different companies were awarded work worth R1.560m. Another eight companies
each received R1.576m.
The official said there was no way that so many companies
would receive awards for the same monetary amount.
“If you look at this document (list), that’s exactly what
happened. Some companies got paid round figures like R16m. How did that
calculation come about ... this needs law enforcement agencies.”
Other businessmen the Dispatch spoke to said though they
had been asked to provide quotes for the supply of PPE, they had never received
any work.
Mdu Madikane, of Associates Logistics JV, said according to
the list his company had been paid R1.130m, yet that was not true at all.
“I only got an appointment letter to supply and deliver
health care respirator masks to the health department. I never received an
award letter. The next thing my name appears as one of the companies that got
the work,” said Madikane.
Madikane is convinced the situation is the “work of a
syndicate within the provincial government”.
“This is corruption that is being committed by a syndicate.
This need to be exposed,” Madikane said.
Madikane said he first responded to an invitation from the
health department to tender for a tents and VIP toilets contract.
Madikane said he later made a bid to supply a million
surgical disposable masks. He then responded to a call to supply of N95 and or KN95
masks.
“This was submitted through a joint venture and on this one
we did receive a letter of appointment, but no purchase order has been received
up to date,” he said.
Madikane said the department came back to his office to
request pictures and specifications of the products and to confirm that stock
was available for gowns as well. Sowetan
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