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The Special Investigating Unit (SIU) welcomes the dismissal of Ms Thandiwe Pino, Chief Director: Supply Chain and Asset Management at Gauteng Department of Health (“GDoH”), for her involvement in the irregular awarding of contracts relating Personal Protective Equipment (PPE) by the department in response to Covid-19 pandemic.

The SIU investigated allegations of maladministration, greed, nepotism and corruption in the appointment of service providers by the GDoH to supply PPE and related goods and services. The allegations were referred by Office of the Premier in Gauteng in March 2020 and later formed part of Proclamation R23 of 2020, which authorised the SIU to investigate allegations of impropriety in connection with the affairs of all State institutions (including the GDoH).

Part of the allegations received stated that:

• Royal Bhaca Projects (Pty) Ltd (“Royal Bhaca”) was irregularly awarded a contract to the value of R125 million from the GDoH to supply various PPE items due to its Director’s close proximity to the MEC of GDoH, Dr Bandile Masuku.
• Ledla Structural Development (PTY) Ltd (“Ledla”), a company with links to Royal Bhaca, was appointed by the GDoH to provide PPE to the value of R139 000 000.
• Beadica 423 cc (“Beadica”) Beadica was awarded a contract to supply PPE to the value of R68 597 000 by the GDoH. Included in the products to supply was surgical masks, N95 face masks and FFP2 face masks.

The SIU finalised the investigation into the award of contracts by GDoH to Royal Bacha, Ledla and Beadica. The investigation revealed that proper procurement processes were not followed in awarding contracts to Royal Bacha, Ledla and Beadica by the former Chief Financial Officer, Ms Kabelo Lehloenya and the Chief Director: Supply Chain and Asset Management of GDoH, Ms Thandiwe Pino.

Ms Lehloenya resigned when the allegations surfaced. The SIU was granted a preservation order by the Special Tribunal to freeze her pension benefits pending the finalisation of civil action against her.

In line with Section 5(7) of the SIU Act 74 of 1996, the SIU referred to the GDoH evidence in support of the institution of disciplinary action against Ms Pino for alleged contraventions of, inter alia, Section 217(1) of the Constitution, Section 38(1)(a)(iii) of the Public Finance Management Act (PFMA), the Preferential Procurement Policy Framework Act: Regulations, Sections 45(a) to (e) of the PFMA, relevant National Treasury Practise Notes, the Supply Chain Management (“SCM”) Policy/ies of the GDoH, and her failure to adhere to the Code of Conduct of the Public Service.

The GDoH actioned the referral by the SIU and instituted disciplinary charges against Ms Pino. The SIU provided evidence and support at the disciplinary hearing. The SIU was informed that Ms Pino was found guilty on the disciplinary charges and a sanction of dismissal was made.

The SIU welcomes the sanction meted against Ms Pino for her involvement in the irregular awarding of PPE contracts to Royal Bacha, Ledla and Beadica. The action by GDoH is a clear demonstration of implementation of SIU referrals for disciplinary action.

Fraud and corruption allegations may be reported via the following platforms: siu@whistleblowing.co.za(link sends e-mail) / Hotline: 0800 037 774

Issued by Department of Justice and Constitutional Development