Covid-19: 90 companies loot state of R2.2bn in emergency purchases

Covid-19: 90 companies loot state of R2.2bn in emergency purchases

- The Special Investigating Unit (SIU) is investigating 90 companies involved in R2.2-billion in emergency purchases for Covid-19

- Sandile Zungu, president of the Black Business Council has said that he is deeply saddened by how his efforts to help black business had been hijacked

- President Cyril Ramaphosa has promised that the government would take corruption more seriously

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The Special Investigating Unit (SIU) has revealed that it is investigating 90 companies involved in R2.2-billion in emergency purchases linked to Covid-19 in Gauteng.

A further R30-million worth of suspected irregular contracts is being investigated in KwaZulu-Natal.

Briefly.co.za learned that Sandile Zungu, president of the Black Business Council, revealed that he was deeply saddened to see his efforts to give black businesses access to the lucrative Covid-19 contracts had been hijacked.

He spoke to the Sunday Times where he expressed how he felt:

“The whole thing seems so unscrupulous and filthy, one doubts it will ever meet the National Treasury-issued regulations pertaining to emergency procurement of supplies and services,” said Sandile Zungu, president of the Black Business Council.
“Thieves and parasitic covidpreneurs who masquerade as black businesses must be handcuffed and shackled to their prison cells. They rob authentic, hard-working and ethical black businesses of an opportunity to do legitimate business with the state.”

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Covid-19: 90 companies loot state of R2.2bn in emergency purchases

President Cyril Ramaphosa has promised the SA will get crack down on corruption. Photo credit: Getty Images
Source: Getty Images

Earlier, Breifly.co.za reported that President Cyril Ramaphosa has promised South Africa that the government will crack down on corruption and mismanagement when it comes to Covid-19 relief funds.

Addressing the nation on Thursday, Ramaphosa vowed that consequences will be 'very, very severe' for those caught red-handed. Ramaphosa said that a 'coordinating centre' has been established to reinforce efforts between law enforcement agencies and to help investigate corruption allegations.

These allegations relate to social relief grants, the procurement of personal protective equipment and the distribution of food parcels.

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In other news, Briefly.co.za reported that the Asset Forfeiture Unit has announced that the bank accounts of a man suspected of defrauding the Unemployment Insurance Fund have been frozen.

Nearly R700 000 meant for employees of a Durban based company was allegedly funnelled into Thokozani Mchunu's bank account.

The Gauteng High Court ordered the accounts to be frozen after suspicions arose that the had fraudulently received funds from the UIF according to National Prosecuting Authority spokesperson Sipho Ngwema:

"It is alleged that an amount of R692 185.55 was fraudulently, or mistakenly, paid into a bank account in Durban, KwaZulu-Natal, which is registered in Mchunu's name."

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Source: Briefly.co.za

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