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PPE millionaire Hamilton Ndlovu ordered to pay back R158m to the state

Hamilton Ndlovu.
Hamilton Ndlovu.
Image: TWITTER

The Special Tribunal on Tuesday declared the 19 personal protective equipment (PPE) tenders worth R172m awarded to flamboyant Johannesburg businessman Hamilton Ndlovu and associated companies unlawful and invalid.

The tribunal has also ordered Ndlovu and his companies to pay back R158m with interest while forfeiting to the state his frozen properties and funds valued at R42m belonging to Ndlovu,  Zaisan Kaihatsu and Bugatti Security Services and Projects.

The 19 tenders came into the spotlight when the Special Investigating Unit (SIU) and the National Health Laboratory Service (NHLS) applied to review and set aside procurement transactions for the supply of PPE between the NHLS and four other companies linked to Ndlovu.

The SIU presented evidence that proved that the companies  purportedly operating separately were all interlinked and were in fact fronting companies belonging to Ndlovu.

“The SIU investigation established that the contracts were obtained by abusing the emergency procurement procedures that were adopted by the NHLS in order to respond to the Covid-19 disaster during the first half of 2020,” said spokesperson Kaizer Kganyago.

“Eight companies obtained contracts to supply PPE to the NHLS during this period, which were all linked to Mr. Ndlovu. He was the controlling mind of all the front companies and the direct and indirect beneficiary of the funds flowing to them from the payments made by the NHLS.”

The judgment by the tribunal ordered that assets belonging to Ndlovu  be sold off and any proceeds made from the sale of his assets will be forfeited to the state.

“The proceeds from sale in execution of the assets forfeited to the state [after any execution steps, review or appeal proceedings] in terms of paragraphs 5 and 6 ,” the judgment read.

These include luxury vehicles, property as well frozen back accounts with funds amounting to R102m.

“In respect of the immovable properties with tenants, collect all rentals between the date of this order and the date on which the properties are transferred to a third party purchaser and disburse the net rental proceeds to a bank account designated by the NHLS,” the judgment further stated.

“Eight companies obtained contracts to supply PPE to the NHLS during this period, which were all linked to Mr. Ndlovu. He was the controlling mind of all the front companies and the direct and indirect beneficiary of the funds flowing to them from the payments made by the NHLS.”

The judgment by the tribunal ordered that assets belonging to Ndlovu  be sold off and any proceeds made from the sale of his assets will be forfeited to the state.

“The proceeds from sale in execution of the assets forfeited to the state [after any execution steps, review or appeal proceedings] in terms of paragraphs 5 and 6 ,” the judgment read.

These include luxury vehicles, property as well frozen back accounts with funds amounting to R102m.

“In respect of the immovable properties with tenants, collect all rentals between the date of this order and the date on which the properties are transferred to a third party purchaser and disburse the net rental proceeds to a bank account designated by the NHLS,” the judgment further stated.

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