SIU probes Diko contract

CONFLICT: MULTI-MILLION RAND TENDER AWARDED TO HUSBAND OF CYRIL’S SP0KESPERSON

Department welcomes ‘all efforts geared towards uprooting corruption’.

The Gauteng health department yesterday confirmed that a company owned by Madzikane II Thandisizwe Diko is under investigation as part of broad procurement by the Special investigative Unit (SIU).

Diko is the husband of presidential spokesperson Khusela Diko, and his Eastern Cape-based firm reportedly secured two contracts to supply protective equipment (PPEs) to the Gauteng department of health.

According to the Sunday Independent, Royal Bhaca Projects (RB) was awarded contracts worth R125 million by the department on 30 March – days after the president announced a national lockdown.

A conflict of interest arose at three levels – Khusela Diko is not only President Cyril Ramaphosa’s spokesperson but also former ANC national spokesperson and currently serves on the ANC provincial executive committee. There is no doubt that her political position could influence the adjudication of the tender and contracts.

Gauteng health department spokesperson Kwara Kekana said the matter regarding procurement was being investigated by the SIU. “The department welcomes all efforts geared towards uprooting corruption in the department,” she said.

Kekana said the department had no record of payment to Royal Bhaca. While she avoided a question whether the company was awarded the contracts, she implied there was commitment made with it. “Any commitment made to the company was cancelled,” Kekana said.

Later she sent a separate message to The Citizen to emphasise her point – “lest I be quoted out of context”.

In a message, she said: “May I also point out that the matter of the SIU, I would imagine, is beyond any single issue but to investigate broadly.”

The Sunday Independent quoted sources and official documents reportedly showing Royal Bhaca scored two contracts worth R47 million and R78 million respectively, for the supply and delivery of PPEs to the department.

It said Diko was the sole director of Royal Bhaca and was awarded contracts to supply 1 million medical waste plastic bags, and 500 000 each of dust masks, sanitisers and surgical masks.

The contract also sparked controversy after Royal Bhaca charged the department of health R58 per surgical mask worth R12.48.

It’s also reported that it charged R85 per 500ml unit of Actigerm alcohol sanitiser, valued at R46.37; and R7 per medical waste bag costing R1.80.

Bhaca’s contracts were part of R2.2 billion PPE tenders awarded to 75 companies by the Gauteng health department since 30 March. The contracts were awarded on 30 March and 1 April , respectively.

The paper quoted Diko as confirming that he got the contract but it was cancelled and he was not paid a cent for it. “I mean, I walked away from this deal. RB [Royal Bhaca] was never paid anything from the department in spite of having delivered. The contract was cancelled.”

Diko said a commitment letter of R78 million, not R139 million, was received but the department cancelled at his request – “after realising that there could be a perception of a potential conflict of interest, as you now allege”.

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Any commitment made to company cancelled