KwaZulu-Natal company ordered to pay back profit made on 'flawed' Covid-19 relief contract

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  • An agreement was reached between investigators and KwaZulu-Natal company Zain Brothers to pay back profits from an irregular tender to supply blankets to the provincial government.
  • Investigations into the contract found it to be flawed, having not met procurement processes and policies.
  • The Special Investigative Unit said the company was ordered to pay back R718 550 to the department.

The company Zain Brothers, appointed by the KwaZulu-Natal Department of Social Development to supply it with blankets, has been ordered to pay back R718 000 profit it made in the flawed procurement contract, the Special Investigating Unit (SIU) has said. 

The 12 000 blankets were sourced last year as part of the department's Covid-19 relief plan for the province.

The SIU filed an application in the tribunal sitting in the Booysens Magistrate's Court in November last year, seeking an order reviewing and setting aside the contract.

"The SIU investigation had found that Zain Brothers had indeed delivered the blankets as per the terms of the contract. The contract was reviewed and set aside by the Special Tribunal on Tuesday. As a result, the SIU calculated the profit earned from the procurement contract and demanded it be paid back. Zain Brothers agreed to pay back R718 550 in full and the agreement was made an order of the court," the SIU tweeted.

Judge Lebogang Modiba, at the Special Tribunal sitting in the Booysens Magistrate's Court, granted the consent order, in which the contract was reviewed and set aside.

Zain Brothers would pay back R718 550 profit it derived from the contract, including the SIU’s legal costs.

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