This site uses cookies. By continuing to use this site you consent to our use of cookies. Close

Africa Legal

Africa Legal

  • NEWS
  • JOBS
  • COURSES
  • CLIENTS
    • Sign in
    • Sign up
  • NEWS
  • COURSES
  • JOBS
    • Sign In
    • Sign Up
  • News
  • Courses
  • Jobs
  • Events
  • Business A-Z
  • Post a job
  • Contact Us
  • Clients
CLIENT SIGN IN
Country
  • Uganda
  • South Africa
  • Kenya
  • Nigeria
  • Cameroon
  • United Kingdom
  • Cote d'Ivoire
  • Ghana
  • Tanzania
  • Zambia
  • Botswana
  • Morocco
  • Zimbabwe
  • Mauritius
  • Mozambique
  • Sudan
  • Rwanda
  • Ethiopia
  • Angola
  • Egypt
  • Togo
  • Mali
  • South Sudan
  • Swaziland
  • Senegal
  • Malawi
  • France
  • Guinea
  • Middle East
  • Democratic Republic of the Congo
  • Gambia
  • Sierra Leone
  • Germany
Category
  • Profiles
  • Analysis & Opinion
  • Career advice
  • In-house
  • Latest news
  • Press releases
  • Africa Legal Blog
  • Women in Law
  • Innovation
  • Human Rights
Practice area
  • Agriculture
  • Arbitration
  • Aviation
  • Banking and Finance
  • Capital markets
  • Charties and pro bono
  • Company commercial
  • Competition and antitrust
  • Construction and engineering
  • Consumer products
  • Corporate finance and M&A
  • Criminal
  • Education
  • Employment and benefits
  • Energy and natural resources
  • Environmental
  • Financial services
  • Fraud & white collar crime
  • Funds
  • Governance | risk and compliance
  • Government and public sector
  • Health and safety
  • Healthcare and pharmaceuticals
  • Insurance/Reinsurance
  • Intellectual Property
  • Litigation and dispute resolution
  • Logistics and transportation
  • Manufacturing and Industrial
  • Private client and family
  • Private equity
  • Projects and infrastructure
  • Real estate
  • Regulatory
  • Restructuring | insolvency and debt recovery
  • Shipping and maritime
  • Taxation
  • Technology media and telecoms
  • Travel and tourism
close

Registration

Registered Successfully!!!. We have sent you a confirmation email to your email address.
close


View My Saved News


close You must login to save your news
  • LOGIN
  • NEW USER

Login to your account

Forgotten your password?
or

Create an Account

close


View My Saved News


« Back

Big Money Scandal

South Africa’s crime-busting Special Investigations Unit (SIU) has frozen about R22 million (£1.1m) held in bank and investment accounts of a media company and others, including a law firm, linked to alleged corruption. Tania Broughton reports.

Jun 23, 2021
Tania Broughton
Share

At the height of the Covid-19 pandemic, Health Minister Zweli Mkhize went on special leave after it was revealed that he had close links to the directors of the media company, Digital Vibes, which had donated a truck to his son.

Mkhize claimed to have no knowledge of any dodgy contracts the company had with the health department but took leave amid the growing controversy.

The SIU is an independent statutory body mandated to investigate corruption, malpractice and maladministration in government and to recover any ensuing financial losses through civil action.

SIU spokesperson Kaizer Kganyago said it had been granted an order earlier this month by the Special Tribunal in terms of which the money had been preserved.

The order prohibits Digital Vibes and its owners and others, including local law firm Ahmods Attorneys, from dealing with the funds in the relevant bank and investment accounts.

He said the SIU investigation had been boosted by the assistance of the Financial Intelligence Centre.

“The SIU approached the Special Tribunal for the order to freeze the accounts following the investigation into allegations of unlawful and/or irregular procurement of Covid-19 communication services by the department.

“While investigations are ongoing, the preliminary investigations have revealed clear evidence exposing two highly irregular and unlawful transactions.

“These are a 2019 procurement process through which Digital Vibes was appointed (at a cost of R25 million) to perform communications services relating to the (still to be rolled out) National Health Insurance.

“The second transaction occurred in 2020, during the tenure of the first, where the company was ‘appointed’ in respect of a Covid-19 awareness campaign, without any competitive bidding or procurement process at all.”

Kganyago said the so-called “extension” of the contract - which cost the department R125 million - was unlawful.

He said the SIU would approach the Special Tribunal within 30 days to seek an order against Digital Vibes and the others who had received money into their bank accounts, to pay back the money.

“Evidence pointing to criminal conduct will be referred to the National Prosecuting Authority and evidence in support of disciplinary, administrative or executive actions will be referred to the relevant authorities.”


To join Africa Legal's mailing list please click here

Copyright : Re-publication of this article is authorised only in the following circumstances; the writer and Africa Legal are both recognised as the author and the website address www.africa-legal.com and original article link are back linked. A bio for the writer can be provided on request.

RELATED CATEGORY NEWS

Using tech to restore land rights in T Read more
Sentence upheld for Kenya university a Read more
Curbing the extraction of “conflict mi Read more

RELATED COUNTRY NEWS

Evolving to suit clients Read more
Moving up: From security guard to trai Read more
“Patent abuse” challenged in South Afr Read more
Africa Legal
  • About us
  • Contact us
  • Terms of use
  • Privacy and cookies policy
Members
  • Find a job
  • Take a course
  • Read news
  • Terms and conditions
  • Cancellations and refunds
Clients
  • Terms and conditions
  • Post a job
  • Host a course
  • Advertise
  • Share news
Connect with us
© Copyright 2023 | Africa Legal. All rights reserved. | Privacy Policy