The Special Investigating Unit (SIU) has uncovered serious alleged procurement irregularities in the South African Department of Defence, including a controversial R33.4 million Cuban medicine deal. The investigation also exposed significant issues at state arms manufacturer Denel, including a troubled R8.3 billion armoured vehicle contract and the loss of intellectual property to foreign entities, particularly in the United Arab Emirates (UAE).
The SIU 's investigation also exposed significant issues at state arms manufacturer Denel .The Special Investigating Unit has uncovered serious alleged procurement irregularities in the South African Department of Defence ’s R33.4 million Cuban medicine deal.
“The military command Council of the South African National Defence Force , which is the highest decision-making body in the Department of Defense, approved the acquisition… the price unit per each viral was $15.50, which amounts to 257 rand per viral,” Lekgetho explained.“The department did not procure the Interferon from Cuba by means of a competitive bidding process,” he stated.
He added that “the department did not recover the payments made to Cuba in respect of the interferons” and “the interference was found not to be fit for purpose by Saphra and as such payments that DOD made to Cuba was fruitless and wasteful expenditure.”Multi-billion rand armored vehicle contract failures
Committee members described the situation as a “national disaster,” emphasising how the compromise of defence intellectual property could give other nations military advantages. The SIU has instituted civil proceedings at the Special Tribunal regarding contracts worth R467 million with technology companies EOH and SoftwareONE.However, the investigation revealed that many licenses were never used, as the department already had existing valid licenses at the time of procurement.
The investigation revealed serious governance failures at both Denel and the Sandf, including officials using personal Gmail accounts for official business.
SIU Corruption Defence Denel Intellectual Property
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