Special Investigation Unit (SIU) personal protective equipment (PPE) corruption report shows former minister and head of ANC organization Nomvula Mokonyane paid bills from suppliers from his personal account, in the name of his daughter’s company.
The SIU report, which was released on Tuesday, shows Mokanyane paid R1.6 million from his personal account on behalf of private company Tuwo Rhodesia to provide the Gauteng Department of Health (DoH) with 200,000 bars of soap.
The DoH contract was valued at over R2.7 million.
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The Companies and Intellectual Property Commission (CIPC) lists the directors of Tuwo Rhodesia as Bonelwa Mgudlwa and Katleho Mokonyane, the latter being the daughter of the former Minister of Environment.
Mgudlwa was employed with SAA Express Airways at the time the contract was awarded, but he did not declare his interests with SAA Express.
Tuwo Rhodesia was also not VAT registered with SARS at the time of their appointment.
In March 2020, the Gauteng Department of Health had contacted Tuwo Rhodesia to submit a quote for 200,000 bars of Dettol soap. At the end of the month, Tuwo Rhodesia won the R2.7 million contract.
Further investigations show that ministry officials did not even bother to shop around for more competitive prices.
In April, Tuwo Rhodesia purchased the soaps from Continental Cash and Carry (CCNC) for R1,509,407 (VAT included).
On April 3, 2020, the former minister paid Tuwo Rhodesia R1.6 million with the description “Continental Cash”.
The next day, CCNC issued another tax invoice to Tuwo Rhodesia for R140,683 (VAT included) for 1,421 packs of 12 Dettol soaps of 175g at R86.09 each (excluding VAT), plus a total VAT amount of R18,350 .
“This means that this CCNC invoice was therefore for 17,052 units of soap at a unit price of R8.25 each (VAT included),” the SIU report said.
Further investigations reveal that an amount of R50,100 was also paid from Mokonyane’s personal account on April 6 with the description “Continental Cash and”.
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The two CCNC invoices show that 200,004 units of soap were purchased for a total amount of R1,650,058.33.
“The total amount paid by former Minister Nomvula Paula Mokonyane was R1,650,100,” the SIU said.
Mgudlwa told the SIU that they “draw funds from inheritance money received by his co-manager from his late father’s estate.”
“We will be forever grateful and indebted, in appreciation, for the support received from the family in this regard,” he said.
He also said that Tuwo Rhodesia has access to commercial capital finance companies that help small black businesses get funded.
On May 11, Gauteng DoH paid R2,790,000 to Tuwo Rhodesia. Tuwo Rhodesia then paid R1.1 million to Mokonyane, R900,000 to Katleho Mokonyane and R35,000 to Mgudlwa.
The SIU said it informed SAA Express Airways of Mgudlwa’s conflict of interest, but the airline said it would not take action against him as it was under administration at the time.
The SIU referred Tuwo Rhodesia to the competition competition for unfair, excessive and unreasonable prizes.
He also referred Professor Mkhululi Lukhele, Head of Department of the Gauteng DoH, to the National Prosecuting Authority on criminal charges of gross financial conduct.
However, the SIU found no wrongdoing on Mokonyane’s part.
Lukhele was suspended from his duties in September 2020.
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