Explainer: Front company used to pay Dikos R80m for Covid-19 tender

Explainer: Front company used to pay Dikos R80m for Covid-19 tender

- The Diko family's Royal Bhaca Projects has been central in a Covid-19 PPE tender scandal

- The family denied any payments were received from the government, adamant that they had cancelled when they released their 'mistake'

- Briefly.co.za explores a report that exposes how payments were filtered to the company despite these assertions

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Presidential spokesperson Khusela Diko and her husband Madzikane have been front and centre after a number of questionable Covid-19 tenders came to light.

In a statement issued by the family after the news broke the couple denied receiving any payments after scoring a R125 million contract with the Gauteng Department of Health.

Now, the Sunday Independent has revealed that a minimum of R80 million for PPE through a company known as Ledla Structural Development.

The payments were reportedly made over the course of two weeks in numerous transactions ranging from R120 000 and R38 million.

The products invoiced allegedly mirror the items detailed in the original contract with Royal Bhaca Projects.

coronavirus

The Diko family have denied receiving a cent from the government for the controversial contract. Image: GCIS
Source: UGC

READ ALSO: ANC orders Masuku to step aside: Probe launched amid tender scandal

It remains unclear whether or not the R80 million is the balance of the contract awarded to the family.

The company didn't appear on the original list of successful bidders who were awarded PPE contracts with the Gauteng government.

Diko had claimed to have walked away from the lucrative deal over concerns due to a possible conflict of interest:

“Royal Bhaca was never paid anything from the department in spite of having delivered. It’s amazing that there can be an assertion that there is R139 million that RB has with the department currently."

Earlier, Briefly.co.za reported that the issue had seen immense backlash due to the Diko family's proximity to President Ramaphosa and their involvement with the provincial government.

Health MEC Bandile Masuku, whose department awarded the tender, has been ordered to step aside and await the outcome of an internal probe. The Masuku and Diko families are known friends.

In addition to this, Khusela Diko has been granted a leave of absence from her post by the Presidency.

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Source: Briefly.co.za

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