KZN's R22.4m Covid-19 irregularities scandal hits another snag - four years later

11th January 2024 By: News24Wire

Almost four years after they were implicated in a R22.4-million irregularities scandal during the Covid-19 era, three senior managers in the KwaZulu-Natal social development department continue working.

This is because the hearings of three chief directors have been marred by delays.

The hearings will now only be held in March this year.

The department paid millions of rand to companies who were contracted to deliver blankets as part of a social relief plan at the height of Covid-19.

The officials' disciplinary hearings have faced postponements since it was instituted.

According to a recent parliamentary reply by Social Development MEC Nonhlanhla Khoza, 12 officials were suspended in relation to the blankets contracts and, as of July 2023, those who were implicated had raked in almost R14.6-million in salaries and bonuses.

The last postponement related to the three chief directors occurred last month.

They were initially suspended, but then instructed to return to work after the provincial government lifted the suspension of all officials while their cases were finalised.

The Special Investigating Unit recently requested the department's blankets contract be set aside due to regularities. 

Investigators instituted civil proceedings in the Special Tribunal to review and set aside the contract, allegedly irregularly awarded to Rosette Investments to supply 12 000 blankets in a contract worth R4 899 000 at the peak of Covid-19.

According to reports, the Rosette Investments contract was one of four awarded by the department to supply 48 000 blankets at a cost of over R18-million.

Provincial social development spokesperson Mhlaba Memela said the overall figure was R22 437 000.

He said the department initially opened criminal cases, in line with findings from a forensic investigation.

Memela said the hearing proceeded from 19 June 2023 to 7 July 2023.

Memela previously told News24 the matter was adjourned and was set to run from 30 November 2023 to 7 December 2023.

He said that, during the most recent sitting, the chief directors requested a postponement due to their representative being booked off work from 30 October 2023 to 30 December 2023.

"In this regard, the matter only proceeded for three dates, namely: 30 November 2023, 1 and 5 December 2023 for purposes of dealing with a request for postponement of the matter to March 2024. In the end, the matter was indeed adjourned to March 2024," Memela said.

Asked how much the legal fees had cost the department, Memela said that matter concerned the Office of the State Attorney in KwaZulu-Natal, advocate Marumo Moerane, who chaired the hearings and was paid an hourly rate per sitting, and the provincial department. 

Queries were sent to the provincial State Attorney's office, and the response will be added when received.