The Special Investigating Unit (SIU), continuing its clampdown on Personal Protective Equipment (PPE) corruption deals, secured a court order to recover R2.4 million from Nozihle Construction and Projects CC.
The SIU obtained the order on 29 September 2025.
The Special Tribunal directed Nozihle Construction and Projects CC to repay the Mpumalanga Department of Health the full amount.
THE INITIAL PPE DEAL WITH MPUMALANGA HEALTH
In April 2020, the Mpumalanga health department entered into a PPE deal with Nozihle Construction.
The company supplied 100 000 three-ply surgical masks to the department at a cost of R2 645 000.
However, “The recoverable amount of R2 427 333.30 represents the difference between the price paid by the Department and the average price for masks on the National Treasury’s transversal contracts,” said the SIU.
TRIBUNAL DECLARES UNLAWFUL PPE DEAL VOID
The tribunal ruled that the contract was unlawful and void because Nozihle Construction and Projects CC was not licensed as a distributor of medical devices.
Distributors of medical materials and devices must register with the South African Health Products Regulatory Authority.
The Medicines and Related Substances Act of 1965. has set out the above-mentioned requirement.
LEGAL COSTS AND ACCOUNTABILITY
In addition, the tribunal ordered the company to cover the SIU’s legal costs.
“This judgment is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the COVID-19 national state of disaster,” said the SIU.
Additionally, the SIU’s spokesperson, Kaizer Kganyago, said the judgment sends a clear message that suppliers who fail to meet essential legal requirements have no entitlement to profit from the state.
“And the SIU will use its litigation powers to the fullest to ensure such funds are returned,” he further says.
