Special Investigating Unit freezes Gauteng Education service providers bank accounts and assets
The Special Investigating Unit (SIU) has been granted a preservation order to the value of R40.7 million by the Special Tribunal to freeze bank accounts and assets belonging to 14 service providers. The service providers were contracted by Gauteng Department of Education to decontaminate schools to the tune of over R431 million.
The SIU approached the Special Tribunal for preservation order to freeze accounts with the sum of R6 million and assets with an estimated value of over R4.7 million belonging to seven companies, five individuals and two family trusts. The assets include two Mercedes Benz V Class, Landrover Range Rover Sport, Haval H6 and Toyota Avanza. The action follows an investigation into allegations of unlawful procurement of services by the education department to decontaminate, disinfect, and sanitize schools.
The collaboration with the Financial Intelligence Centre (FIC) is very effective and the FIC assisted and based on the information presented by the investigating team issued intervention directions under Section 34 of the FIC Act to place a hold on R30 million of the funds received from the education department. This after seven service providers began dissipating the funds received from the department, upon receipt. A portion of the funds were transferred to multiple beneficiaries who have, in turn, disposed of them. The order prohibits Fikile Mpofana Pty Ltd, Insimu Projects Pty Ltd, Insimu Consulting Pty Ltd, Insimu Medical Group, Mangaliso Pty Ltd, Lisondalo Pty Ltd, Zenaldo Consulting Pty Ltd, Sigwile Bright Mhlongo, Fikele Eugenia Mpofana, Lindokuhle Bridget Mkhize, Njabulo Mabaso, Richard Mweli, Shuphula Family Trust, and Madangu Family Trust from dealing with the funds held in the bank accounts and assets.
The SIU will forthwith launch review proceedings in the Special Tribunal within the next 30 days and also seek an order against the service providers to pay back all profits as consequence of their appointment.
The SIU investigation has revealed that the procurement process conducted by the Gauteng Education Department was manifestly unlawful. The Gauteng Department of Education (the Department) paid over R431 million to service providers pursuant to a process that was haphazard, unfair and littered with procurement irregularities.