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The Special Investigating Unit (SIU) welcomes the arrest of six people by the Hawks for fraud, corruption and money laundering related to Covid-19 personal protective equipment (PPE) in the Mpumalanga Department of Public Works, Roads and Transport.

Of the accused, three are employed by the department and the other three are suppliers, who won the tender.

The department employees are:

• Bandile Jacob Ngcobo employed by the Department as a State Accountant: Property and Facility.
• Sipho Ronny Monareng employed by the Department as an Acting Chief Director: Immovable Asset Management.
• Macdonald Buko Sigudla employed by the Department as Deputy Director: Facility.

The service providers are:

• Tshidi Susan Sedibe, the sole Director of Superia Services Trading (Pty) Ltd, the entity contracted to render fumigation-related services at the Department.
• Anthony Mashego, the sole Director of Maganeleni Trading and Projects (Pty) Ltd the entity contracted to render PPE and fumigation-related services at the Department.
• Whisky Khumalo, the sole Director of Makhula Span Trading (Pty) Ltd an entity contracted to render PPE-related services at the Department.

The six appeared in the Nelspruit Magistrate’s Court on Wednesday and were released on bail of R10 000 each. The matter will return to court on 2 November.

The SIU investigations uncovered evidence of fraud, corruption and money laundering between the officials and service providers amounting to approximately R1.3 million. As the SIU sifted through bank records, the probe found that Maganeleni made numerous potentially corrupt payments to Monareng, and Superia also made numerous potentially corrupt payments to Sigudla. The bank records also indicate that Superia made numerous potentially corrupt payments to Ngcobo.

Furthermore, the SIU investigation found that there was fraudulent invoicing for services not rendered and inflation of kilometres claimed. In an instance where service providers were contracted to do fumigations, there was fraudulent inflation of square metres claimed, which resulted in the Department paying more than what it should have.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU referred evidence pointing to a criminal conduct to the National Prosecuting Authority (NPA). The six were charged with giving a benefit or accepting a benefit, which is a corruption charge. They were also charged with money laundering and fraud.

The investigation falls under Proclamation R23 of 2020, which was authorised by President Cyril Ramaphosa, for the SIU to investigate all Covid-19-related contracts in all State institutions in respect of the procurement or contracting for goods, works and services, during, or in respect of the National State of Disaster, by or on behalf of State institutions.

Issued by Special Investigating Unit