The Special Investigating Unit (SIU) has uncovered a litany of irregularities surrounding the Department of Defence's procurement of Interferon alfa-2b drug from Cuba during the COVID-19 pandemic. The SIU is seeking to recover R33.4 million paid to the Cuban government for the drug, which was ultimately deemed unfit for purpose and returned to Cuba.
The Special Investigating Unit ( SIU ) has uncovered a string of irregularities surrounding the Department of Defence's procurement of Interferon alfa-2b drug from Cuba during the COVID-19 pandemic five years ago. The SIU is seeking to recover R33.4 million paid to the Cuba n government for the drug. Briefing the standing committee on public accounts, SIU chief operating officer Leonard Lekgetho detailed the findings.
The SIU investigation stemmed from an allegation made during an investigation into Personal Protective Equipment (PPE) that the department procured 930 units of the Interferon alfa-2b drug and paid R217 million to Cuba.Lekgetho revealed that the department's Military Command Council (MCC) approved the acquisition of the drug using a defence cooperation agreement between South Africa and Cuba. He stated that 10 agreements were signed after the delivery of the medicine was finalized, and the department paid R33.4 million for the first consignment of 130 vials while the second and third consignments remained unpaid. Lekgetho emphasized that the department did not procure Interferons from Cuba through a bidding process and that the MCC exceeded its authority by approving the procurement.He further explained that the Secretary of Defence is the accounting officer, and all procurement needs to be signed by the accounting officer. The SIU found that the Interferon alfa-2b was not approved by the South African Health Products Regulating Authority (SAHPRA) for import and use in the country when it arrived. Additionally, the department lacked budget allocation for acquiring the Interferons, and the drugs were ultimately returned to Cuba following a court order on application by SAHPRA. The SIU determined that only 15 vials imported from Cuba were used, with 10 administered to a patient at 1 Military Hospital and five others by SAHPRA for testing purposes. Lekgetho stated that the department failed to recover the payment made to Cuba for the returned drug, deemed unfit for purpose by SAHPRA, resulting in fruitless and wasteful expenditure.The SIU is preparing a referral for disciplinary action against the official responsible for the irregular expenditure. While the SIU did not uncover evidence of criminal conduct or money laundering to members of the Defence Department or any other individual, it is proceeding with referring the setting aside of the Interferon contract and the recovery of the payment made to Techno Import on behalf of Cuba to the Special Tribunal. Lekgetho confirmed that the SIU is taking legal action to cancel the R217 million contract entered into by the Department of Defence with Cuba and to initiate civil proceedings to recover the R33.4 million paid for the unused medicine. The SIU also made damning findings in its investigation into the procurement of PPE within the Department of Defence, following allegations of non-compliance with regular supply chain management processes and collusion within the adjudication committee.Lekgetho highlighted excessive pricing charged to the Defence for approved PPE and confirmed collusion between SANDF members and service providers. He stated that some involved members purchased vehicles and received money through cash transfers, signaling a widespread pattern of corruption. The SIU conducted financial analysis and is assisting the Directorate for Priority Crime Investigation (DPCI) in pursuing criminal charges against those involved.Lekgetho further disclosed that the SIU has made 33 referrals to the National Prosecuting Authority (NPA) and Asset Forfeiture Unit, one disciplinary action referral, and two administrative action referrals to the Competition Commission for price fixing
SIU Corruption Department Of Defence Interferon Alfa-2B Cuba Procurement Irregularities Frugal Expenditure SAHPRA PPE Criminal Charges
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