Johannesburg businessman Thabiso Hamilton Ndlovu, a key figure in the controversial PPE corruption case linked to South Africa’s COVID-19 response, has been sentenced to 30 days in prison for contempt of court. The Special Tribunal issued the sentence on Thursday after Ndlovu failed to comply with a forfeiture order requiring him to surrender assets connected to his illegal dealings.
In addition to the imprisonment, the tribunal imposed a suspended fine of R500,000 on Ndlovu for his failure to honour the 2022 court order. The order was part of a wider effort to recover funds owed to the National Health Laboratory Service (NHLS), which was defrauded by companies linked to Ndlovu during the height of the COVID-19 pandemic.
Ndlovu’s companies secured tenders worth a staggering R172 million from the NHLS under questionable circumstances, with investigations revealing the misuse of emergency procurement procedures put in place to address the urgent demand for PPE in 2020. In a ruling last year, the Special Tribunal set aside these contracts and demanded that Ndlovu and his associated companies repay R158 million, plus interest.
The legal battles surrounding Ndlovu’s PPE deals have exposed how a web of companies, many linked to the businessman, manipulated emergency procurement systems to rake in millions. According to Kaizer Kganyago, spokesperson for the Special Investigation Unit (SIU), a detailed investigation into the finances of Ndlovu’s businesses revealed that almost 90% of the funds intended for PPE supplies were diverted for personal use.
The SIU’s forensic analysis showed that, while approximately R15 million was used to purchase actual PPE, the bulk of the funds ended up in Ndlovu’s pockets. These findings were part of a broader investigation launched under Proclamation R.23 of 2020, which was authorised by President Cyril Ramaphosa to probe corruption, malpractice, and irregularities in state procurement during the pandemic.
In September 2023, a Bryanston mansion connected to Ndlovu was sold at auction for R7.1 million as part of efforts to recover the debt owed by him. The auction, which was confirmed by the North Gauteng High Court, was a key step in the enforcement of a forfeiture order issued by the Special Tribunal in January 2023. The proceeds from the sale were directed to the SIU and NHLS as part of the ongoing efforts to hold those responsible for the corruption accountable.
The auctioned property, a luxury mansion in Bryanston, was part of the assets linked to Ndlovu that were seized as part of the forfeiture proceedings. Despite attempts to block the sale, the court upheld the auction, with the R7.1 million proceeds being accepted by the NHLS and SIU to partially offset the financial losses resulting from the corrupt deals.
The sale of the mansion marks a significant victory for those seeking accountability for the misuse of COVID-19 emergency funds. According to Kganyago, the SIU’s investigation showed that companies linked to Ndlovu were awarded tenders based on “abusing the emergency procurement procedures” designed to expedite the purchase of essential supplies during the early stages of the pandemic.
The SIU’s investigation into Ndlovu’s dealings has implicated a network of companies and individuals, many of whom played key roles in securing tenders through fraudulent means. The scale of the corruption revealed during these investigations has cast a shadow over the country’s pandemic response, with multimillions of rands in public funds being siphoned off in a widespread corruption scandal.
In response to the findings, the Special Tribunal has taken a firm stance, ruling that the funds misappropriated by Ndlovu and his associates must be returned to the NHLS to compensate for the lost money. Despite the legal repercussions, including the contempt charge and the forfeiture orders, Ndlovu has yet to fully comply with the court’s decisions, prompting the additional fine and imprisonment.
