The Supreme Court of Appeal (SCA) under Case No. 647/2021 dismissed, with costs, an application for special leave to appeal the Special Tribunal (Tribunal) order(s) dated 10 December 2020 and 4 February 2021 declaring the R 139 million Personal Protective Equipment (PPE) contract, awarded by the Gauteng Department of Health (GDOH) to Ledla Structural Development (Pty) Ltd (Ledla), unlawful and invalid, and ordering the final forfeiture of funds to the State in respect of certain funds that were paid by the GDOH to Ledla.
Initially, Ledla applied to the Tribunal for leave to appeal the Tribunal order(s) of 10 December 2020 and 4 February 2021, but that application for leave to appeal was dismissed by the Tribunal on 25 May 2021. Thereafter Ledla and its two directors applied to the SCA for special leave to appeal.
In its order of 15 September 2021, the SCA dismissed Ledla’s application for special leave to appeal on the grounds that there are no reasonable prospects of success in an appeal and that there is no other compelling reason why an appeal should be heard. This is the second failed attempt by Ledla and its directors to appeal the said Tribunal order(s).
The Special Investigating Unit (SIU) was, in terms of Proclamation No. R. 23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, malpractice, maladministration and irregularities in the procurement of, and contracting for goods, works and/or services during the Covid-19 state of disaster, and in respect of resulting payments. The SIU investigation revealed that the GDOH irregularly awarded Ledla a contract for the supply and delivery of PPE.
The SIU welcomes the SCA order as an affirmation of the standing of the Special Tribunal in adjudicating matters brought to it by the SIU and the orders granted.
The Special Tribunal has proven to be a game changer and effective tool in the fight against corruption and maladministration in South Africa. It has made it possible for the SIU to expedite the preservation of potentially illicit funds and assets and the recovery of financial losses suffered by the State resulting from, corruption and maladministration.
The Special Tribunal is a dedicated forum to deal with matters identified during SIU investigations, and the Special Tribunal does not currently suffer under the over-burdened court rolls as experience in the High Courts. The expeditious adjudication of civil proceedings by the Special Tribunal makes it more difficult for implicated parties to hide or dissipate the money and assets lost by State institutions through irregular and/or corrupt means.
Source: Government of South Africa