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The Special Investigating Unit said there were three matters in the Eastern Cape that have been referred to the Special Tribunal as part of the ongoing probe into wide-scale fraud and corruption in the procurement of Personal Protective Equipment.
SIU head, advocate Andy Mothiba, briefed the media on Friday on the progress of the investigations authorised by way of a proclamation by President Cyril Ramaphosa.
He said a total of R30.7 billion was spent by state institutions between April and November 2020 on PPE procurement.
"Of that R30.7 billion, R13.3 billion is subject to the SIU investigation. As at the date of the release of this progress report and the outcomes, a total of 2 556 PPE contracts were awarded to the state institutions and the value is R13.3 billion, which is subject to investigations.
Mothibi said 17 matters were under investigation in the Eastern Cape, with three before the Special Tribunal.
The matters before the Tribunal relate to the Motorbike Mobile Clinic project, the Covid19 Door-to-Door Campaign in the OR Tambo District Municipality and the awarding of a R2.7 million contract to a company for the procurement of PPE for the Provincial Department of Education.
Criminal matters are also pending in two cases in the Eastern Cape.
In his lengthy 86-page report, Mothibi said over 35% of the funds allocated by the government to the procurement of personal protective equipment against Covid19, were subject to investigation.
In his 86-page report, Mothibi said their investigations found that some companies were awarded contracts without having "any demonstrable track-record, while some delivered sub-standard goods."
"Product specifications were ignored and products that were not suitable for its intended purpose were purchased and several instances against the advice of expert opinion on the usefulness of the product. Certain companies were awarded BBBEE points as Level 1 contributors when the, in fact, did not qualify," he said.
Mothibi said evidence indicated that "political pressure played a role in the procurement of PPE.
"It is worth emphasising that the SIU investigations have revealed a flagrant and wanton disregard of the applicable law, policies and procedures," he said.
"It is disheartening to see state officials in all spheres of government, who have been called to serve the people of South Africa being implicated in unlawful and illegal activities in procurement processes that are meant to benefit the public with corrupt intent to unduly benefit themselves and their friends and or relatives to the prejudice of the state and of the public.
Mothibi said the SIU recommended that legislative amendments be considered to provide for safeguards when State Institutions are to contract with domestic prominent influential persons and their immediate family, as well as entities in which they have an interest, or are beneficial owners of.
"All state institutions should be bound by such safeguards," he said.
