- Hamilton Ndlovu’s estate will remain preserved while he appeals the judgment to return millions in Physical educationpersonal protection equipment tenders
- An investigation by the Special Investigation Unit found that the businessman allegedly pocketed almost 90% of R172 million in PPE. tenders
- The SIU and the National Health Laboratory Services have asked the court to confirm that the assets remain frozen.
The Special Court has confirmed that the assets of businessman Hamilton Ndlovu and others will be held pending the outcome of an appeal to the High Court to quash the final confiscation order of the retained assets.
An investigation by the Special Investigation Unit (SIU) found that Ndlovu allegedly pocketed nearly 90% of R172 million worth of personal protective equipment (PPE) tenders awarded by the National Health Laboratory Service (NHLS). in 2020.
The investigation established that the 19 contracts were obtained by abusing emergency contracting procedures to respond to the Covid-19 disaster.
The SIU took the matter to court to recover state funds.
The Special Court, which has a legal mandate to recover public funds diverted from the treasury through corruption, fraud and illicit money flows, ruled that Ndlovu must repay R158,850,921 including interest.
Judge Lebogang Modiba ruled on June 7, 2022 that all assets owned by Ndlovu and his companies must be auctioned or sold to recover money owed to the NHLS.
The court further ordered that property and funds preserved held by Ndlovu, Zaisan Kaihatsu and Bugatti Security Services and Projects worth R42 million be confiscated from the state.
Businessman Hamilton Ndlovu’s assets remain frozen while he appeals a Special Court ruling.
Youtube/Youtube Screenshot
Ndlovu is appealing to the High Court to have the confiscation order revoked.
The SIU with the NHLS applied to the Special Court last month to confirm that the preservation order remains in force despite Ndlovu’s appeal.
A response on January 31 was that the order still stands and the assets remained preserved.
According to the SIU, Modiba, the president of the Special Court, ruled that Ndlovu and others did not challenge the serious allegations of procurement fraud and therefore had no legal basis to resist the preservation order.
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“The purpose of the preservation order was to preserve specific assets and protect them from damage or loss of value pending their final forfeiture. The Special Court concluded that it was not in the interest of justice to allow Ndlovu and others to retain possession of the preserved assets,” Modiba ruled.
The SIU was authorized by President Cyril Ramaphosa to investigate allegations of corruption, malpractice, mismanagement and irregularities in the procurement of goods and services during the Covid-19 state of disaster.
The SIU analyzed the bank statements of the shell companies and of Ndlovu and other companies and individuals linked to him.
“The analysis showed that, apart from an amount of around R15 million that appears to have been used for the purchase of PPE, the funds…were not used to procure supplies of PPE…Instead, almost 90% of the funds flowed to Ndlovu for his own use.”
The SIU welcomed the Special Court’s order.
