Ten government employees from the Eastern Cape are being investigated after it came to light that they were allegedly doing business with the state. 

According to News24, the government employees were red-flagged by the provincial treasury. 

Provincial Finance MEC Mlungisi Mvoko sounded the alarm after allegedly finding that employees from the local and provincial governments were involved in Covid-19 business-related dealings with the provincial government. 

According to the publication, the provincial treasury head, Daluhlanga Majeka, served the implicated employees with injunction letters and gave their management urgent notice to investigate the matter. 

Majeka also warned those involved that they had been exposed to criminal prosecution by their alleged actions.

This came after the Eastern Cape provincial treasury decided to publish all names of businesses providing services to the government amid much scrutiny of government tender deals pertaining to the Covid-19 pandemic, News24 reported.

According to DispatchLive, the implicated employees secured contracts worth a combined R24-million to supply local government with personal protective equipment (PPE) against the coronavirus within the province's boundaries.

The treasury has given the local government administration until Wednesday to explain how tenders could have been awarded to government employees.

The publication reported that Mvoko said doing business with the government while working for it constituted a breach of regulations.

Mvoko said officials in the value chain involved in the process must be held accountable and that the department must explain what steps it would take to ensure this does not happen again.