Africa-Press – South-Africa. The “author of a fraudulent scheme” were the words the Special Investigating Unit (SIU) used to describe flashy businessman Hamilton Ndlovu, who scored close to R172 million in personal protective equipment (PPE) contracts from the National Health Laboratory Service (NHLS).
It was presenting its argument in a review in which it wants the Special Tribunal to declare 19 PPE supply contracts between the NHLS and eight companies unconstitutional. The companies, it is alleged, were controlled by Ndlovu and were used as a front to conduct business with the state.
Arguing before Judge Lebogang Modiba on Thursday morning, advocate Barry Roux who represents the SIU said what was not in dispute was that all the contracts should be set aside.
How flashy businessman Hamilton Ndlovu scored close to R172 million in irregular PPE tenders
Roux said this was a “grand fraud” perpetrated by Ndlovu, assisted by front companies.
He added that the “sad” thing about the matter was that it happened at a time when the country had a “desperate need to address the problems caused by Covid-19 and the need to provide PPE was exploited with no regard to the risk that it would cause to the health workers”.
In its heads of argument, the SIU submitted that the “majority of the front companies were empty shells, manifestly incapable of and unqualified to supply PPE”.
It said:
It continued: “The companies pretended to be independent entities conducting legitimate business in competition with each other while in fact, they were a front enabling Hamilton Ndlovu to obtain multiple contracts from the NHLS at excessive prices without revealing his involvement in each of them.”
The SIU said that of the R172 million that was paid, almost 90 percent went to Ndlovu or companies controlled by him and was used for his personal benefit.
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In just a few months, he spent millions of the funds on cars, houses, furniture and fittings for the houses, and investments, while some R16 million from the NHLS payments was withdrawn in cash, the SIU said.
During the hearing, Modiba said 90% of the money went to Ndlovu and did not benefit the front companies.
“We know how much the front companies benefitted. Why should the remedy not be limited to the amounts they received? The remedy must be fair [and] it must fit the circumstances,” she said.
In response, Roux asked: “Is it just and equitable to assist the main perpetrator to let the money flow to him away from the NHLS and you play your part by allowing your bank account to be used, your name to be used and transfer the money? Is that just and equitable that you are only liable for what you ultimately receive?
Roux added that he did not want to take the argument further.
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Meanwhile, Ndlovu conceded that the contract was obtained unlawfully.
Modiba questioned why, on the basis of fraud allegations, Ndlovu, the entities he represents, and his wife should not be restricted from trading with the state.
Ndlovu’s advocate, Matlhaba Manala, said the fraud allegations could not be established, and therefore there was no basis for Modiba to give a direction regarding restriction.
Ndlovu also said the SIU and NHLS could go through the debatement of the account. However, this was rejected because Ndlovu failed to raise this in an answering affidavit and failed to submit heads of argument.
Modiba raised concerns about Ndlovu’s “flagrant disregard of tribunal rules and directives”.
“If this matter is not finalised, it might take forever to be finalised because he simply disregards tribunal rules and directives,” Modiba said, adding that Ndlovu had been ignoring deadlines.
Defending Ndlovu, his advocate disagreed, saying it was difficult for his client to prepare for the matter.
He said Ndlovu’s assets had been preserved, but that he was expected to “miraculously outperform the state machinery”.
He also said Ndlovu had lost his legal representative.
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Ndlovu made headlines in 2020 when he posted a video of a fleet of luxury vehicles, including a Jeep Grand Cherokee, three Porsches and a Lamborghini Urus, News24 previously reported.
In September 2021, the SIU and NHLS obtained a Special Tribunal order to prohibit him from disposing of his assets, valued at R42 million.
Ndlovu’s application for the review of the order was dismissed with costs in December 2021.
In March that year, Ndlovu was hit with a similar preservation order, obtained by the South African Revenue Service, to the tune of R60 million.
Judgment has been reserved.
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