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R1,34M PPE fraud case in court

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THE trial against a Middelburg-based company that allegedly overcharged the Mpumalanga Department of Social Development nearly R800 000 for Personal Protective Equipment (PPE) is expected to start in the Special Tribunal sitting in the Mbombela High Court today, 10 October.

Zeelwa Trading was awarded five contracts valued at R1,34 million to supply the department with PPE and other hygiene products during the Covid-19 pandemic.

According to the indictment, on 18 March 2020, Zeelwa Trading allegedly quoted 1336 surgical masks at a cost of R75 each, amounting to R100 200.

The Special Investigating Unit (SIU) alleges that the amount was contrary to the National Treasury’s stipulated price of R21,05 per mask.

Twenty gloves were quoted at a cost of R420 each, amounting to R8400 despite National Treasury having stipulated a maximum price of R158 for a pair of gloves.

It is alleged that Zeelwa Trading once again submitted a quotation of 2364 surgical masks at a cost price of R75 per mask, which amounted to R177 300.

On 26 March 2020, the company also submitted a quotation for 600 surgical masks at a cost of R64,88.

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A day after, another quotation was submitted for 10 000 masks, 100 latex gloves and 60 sanitisers.

During this purchase alone, the department was allegedly overcharged R457 558.

The SIU wants the Special Tribunal to review and set aside the contracts that the department awarded to Zeelwa Trading to supply PPE.

Tribunal spokesman Selby Makgotho said in the case management meeting to assess the state of readiness for the trial, counsel for the plaintiffs (SIU) submitted that it would call in witnesses who will allege that Zeelwa Trading had overcharged the department.

“Zeelwa Trading, through its counsel, submitted that it would oppose the overcharging claim and call its witnesses who will dispute the plaintiffs’ claims,” said Makgotho.

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