The clampdown on ‘disturbing’ Covid corruption is under way – Ramaphosa

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The clampdown on ‘disturbing’ Covid corruption is under way – Ramaphosa
The clampdown on ‘disturbing’ Covid corruption is under way – Ramaphosa

NEWS


Those who have “willfully intended to defraud” while scores of people became ill and were dying will not get away with it.

These were the fighting words of President Cyril Ramaphosa in his weekly newsletter to the nation on Monday morning.

“The diversion of resources meant for public benefit came at a direct cost to people’s health and lives,” he said, referring to the report released last week by the Special Investigating Unit (SIU) into procurement during the coronavirus state of disaster.

“All involved in wrongdoing will be dealt with harshly and appropriately. They will not get to enjoy their ill-gotten gains, as steps have been taken to recover stolen money, including the freezing of bank accounts.”

Ramaphosa said that South Africans have become far too used to hearing stories about corruption, but “little could have prepared us for seeing, in detail, the lengths to which some among our people have gone to steal at a time when our nation is facing the worst health emergency in modern times”.

Read: Makhura denies involvement in the PPE contracts scandal

Ramaphosa expressed his disgust that people purposefully set out to steal millions in public money, misuse state property and divert resources meant for the South African people into personal pockets.

These are some of the cases:


  • Individuals and entities with no experience in the manufacture, supply of distribution of critical medical supplies hastily set up companies. In some case they were registered on national databases and received purchase orders. In others they weren’t even registered but profited nonetheless. This includes entities operating as a car wash and a shisa nyama.
  • Suppliers used different front companies to obtain multiple contracts from the same department. Personal protective equipment and other supplies were procured at inflated prices, in some cases at mark-ups exceeding 400%. Some products did not meet the necessary specifications.
  • When investigations started, some companies did not have paper trails to substantiate their procurement. Some officials refused to comply or claimed they were ‘only following instructions’ from their superiors. Documents were destroyed.

These are the steps taken:

  • A number of civil litigation cases have been instituted for the return of ill-gotten money.
  • Specific cases have been referred to for prosecution.
  • Contracts found to be unlawful have been cancelled.
  • Government entities have been directed not to make payments to the service providers pending the outcome of investigations and or civil proceedings.
  • There have been referrals for disciplinary action against implicated officials and a number of these have commenced.
  • Similar action is being taken against individuals and companies implicated in maladministration and fraud around the Covid-19 Temporary Employment Relief Scheme (Ters). This includes employers who pocketed the benefits owed to their staff, or kept quiet about Ters funds paid to them by mistake.

“A number of hard lessons have been learned in this entire process,” Ramaphosa said.

“It has taught us that every regulatory, legislative and procedural loophole must be closed to ensure there is no point of entry for those who seek to exploit them.”

He said it was clear that those who profited from the Covid-19 disaster and those who colluded with officials took advantage of the urgency of the moment to disregard National Treasury and provincial treasury instructions. It has shown the need for a coordinated approach to fighting corruption that brings in several organs of state, he said.

All involved in wrongdoing will be dealt with harshly and appropriately. They will not get to enjoy their ill-gotten gains, as steps have been taken to recover stolen money, including the freezing of bank accounts
President Cyril Ramaphosa

The SIU investigation looked into more than 2500 PPE contracts. While some investigations are ongoing, in many cases the allegations were found to be without substance and the companies were cleared of wrongdoing.

“I would like to assure South Africans that the net is closing in on those involved in corrupt acts. This includes not just private companies, but also those in the public service who thought they could collude with outside individuals to sell off resources meant for our people,” Ramaphosa said.

cyril rampahosa in mpumalanga
President Cyril Ramaphosa during a visit to assess Mpumalanga's Covid-19 response. Picture: GCIS

He said the work of the SIU and other law enforcement bodies had sent the clear message that those guilty of criminal acts would be found and would be prosecuted.

Read: PPE corruption woes: Half of R30bn spent by Treasury is under investigation by SIU

“In time to come it will be remembered that the action we took in this instance set the standard in our quest to build an ethical state staffed by incorruptible public servants and elected public representatives. Our nation’s experience in the procurement of essential supplies and services during the national state of disaster is a disgraceful chapter that must be firmly closed.

“This experience has shown that, as a state and as a society, we have both the will and the means to act decisively against theft, fraud and corruption,” he said.


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