SIU guns for ‘inflated’ profits of Gauteng Covid school cleaning firms

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Tribunal hears how a range of companies not on database for cleaning and sanitation benefited from bloated contracts

A special tribunal has reserved judgment in an application by the Special Investigating Unit to have R431m worth of contracts for the decontamination of Gauteng schools affected by the Covid-19 pandemic overturned.Companies linked to fishing, arts, entertainment, vehicle repairs, real estate, construction, mining and quarrying allegedly scored some R431m worth of Covid-19 school decontamination and sanitisation contracts from the Gauteng department of education.

In May the tribunal granted the SIU an interim order to freeze funds in business and personal banking accounts belonging to the directors of the companies, as well as the accounts of several trusts, some of which belong to the service providers’ directors. While some of the service providers were registered on the database, they were “registered as suppliers in industries including mining and quarrying, retail trade, vehicle repairs, construction, transportation and storage, arts, entertainment and recreation, agriculture, forestry and fishing, and real estate”.

Disputing that his clients were not registered on the department’s database or correctly accredited, he said many of the companies were registered for “human health”. He questioned why the SIU was chasing specific service providers, “when none of the service providers were registered on the database”.

 

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