MyPE

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PPE Corruption: Possible collusion between NMB staff and Covid-19 service providers must be investigated

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Dear MyPE

The DA has been reliably informed of possible collusion between employees of the Nelson Mandela Bay Municipality and service providers, to inflate the prices of Personal Protective Equipment (PPE) procured by the Municipality during the Covid-19 pandemic.

Today, 8 September 2020, I conducted an oversight inspection at the municipal supply chain management offices to investigate how business is conducted and if the correct supply chain management processes are being followed to procure PPE.

The DA is in possession of a recent report indicating how service providers apparently inflated their initial prices charged for PPE to correlate with the prices charged by other service providers.

A case in point is the delivery of surgical masks by Mtawelanga Trading. Mtawelanga initially delivered 25 000 surgical masks at R11,50 per mask and was paid a total of R287 500.

Shortly thereafter, companies such as Kaziforce, Heico Project Management and Belles Trading started delivering surgical masks at a price of R19,50 per mask. Thereafter, Mtawelanga’s unit price per surgical mask also increased to R19,50 per mask.

Zondiphase Consulting also started off by charging R11,50 per masks, but then also increased the unit price to R19,50.

According to the PPE price list provided by National Treasury, as at 28 April 2020, Type 1 masks should be bought at no more than R511 per box of 50, or R10,22 per mask VAT inclusive.

The inflation of unit prices for the delivery of 330 ml bottles of hand sanitizer also indicates possible collusion to loot funds made available for the battle against the Coronavirus.

The main suppliers of hand sanitizer to the Metro, according to the report, are Heico Project Management and Platinum Suppliers, owned by the husband and wife team of Shereez and Raynard Brass, respectively.

Platinum charged R40,50 per bottle, but at a certain stage this was increased to R47,75 – whilst Heico charged the Metro R57,50 per bottle.

These examples of apparent collusion must immediately be investigated internally, and those implicated must be put on suspension by the Chief Financial Officer.

The Special Investigating Unit (SIU) is currently investigating PPE corruption in the Metro after the DA wrote to the SIU and met with investigators.

The DA warned the government that the Eastern Cape is becoming the epicentre of Covid-19 corruption and these revelations prove that the ANC-led Coalition of Corruption is more interested in lining their pockets than saving lives.

We will not rest until public funds are spent with complete transparency and accountability and value for money is achieved, and all those involved in criminal activities are arrested and put behind bars.

Regards

Cllr Nqaba Bhanga
DA Eastern Cape Provincial Leader and NMB Mayoral Candidate

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