Court orders businessman to repay R158m in PPE tender scandal

The Gauteng High Court has dismissed an application by businessman Hamilton Ndlovu to evade repayment of R158 million in monies gained from unlawful and irregular personal protective equipment (PPE) tenders. Ndlovu and his associated companies approached the court to try to reinstate a lapsed appeal against the Special Tribunal’s order of 7 June 2022, which declared the awarding of the contracts unlawful and ordered Ndlovu to repay the R158 million. Following this ruling, Ndlovu and his companies attempted to file an appeal; however, it lapsed due to failure to act within the prescribed timelines.

The court found that Ndlovu’s explanations for the delays were superficial, contradictory, and dishonest. Between March and April 2020, the National Health Laboratory Service (NHLS) awarded 19 PPE contracts worth R172 million to companies controlled by Ndlovu during the height of the Covid-19 pandemic. However, investigations found that only R13.8 million was used to procure personal protective equipment.

Millions meant for life-saving Covid-19 protective equipment were instead splurged on a string of luxury items, including a Porsche 911 Carrera, a Lamborghini Urus, a Bentley Continental GT and other high-end vehicles. Bank records showed that some of the money was transferred to Ndlovu’s personal accounts and those of his relatives. The Special Investigating Unit (SIU) has welcomed the dismissal of the appeal application, saying that the decision confirms that Ndlovu and his entities have no prospects of success in challenging the Special Tribunal’s findings. The SIU said the judgment strengthens efforts to recover public funds lost through irregular Covid-19 procurements.