SIU freezes R40m worth of assets from 14 companies illegally awarded tenders to sanitise Gauteng schools
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Picture: Motshwari Mofokeng/African News Agency (ANA) Archives
Johannesburg - The Special Investigative Unit (SIU) was granted an order in the Special Tribunal to freeze assets worth more than R40 million to companies which were irregularly awarded tenders by the Gauteng Department of Education to sanitise local schools.
These 14 companies were part of a number of companies that were contracted by the Gauteng Department of Education to decontaminate schools to the tune of R431m.
SIU spokesperson Kaizer Kganyago said the Unit froze assets worth R40.7m.
“The Special Investigating Unit (SIU) has been granted a preservation order to the value of R40.7m by the Special Tribunal to freeze bank accounts and assets belonging to 14 service providers.
“The service providers were contracted by Gauteng Department of Education to decontaminate schools to the tune of over R431m.
“The SIU approached the Special Tribunal for preservation order to freeze accounts with the sum of R6m and assets with an estimated value of over R4.7m belonging to seven companies, five individuals and two family trusts.
The action follows an investigation into allegations of unlawful procurement of services by the education department to decontaminate, disinfect, and sanitize schools,” Kganyago said.
He added that the collaboration with the Financial Intelligence Centre (FIC) was very effective and the FIC assisted and based on the information presented by the investigating team issued intervention directions under Section 34 of the FIC Act to place a hold on R30m of the funds received from the education department.
“This after seven service providers began dissipating the funds received from the department, upon receipt.
“A portion of the funds were transferred to multiple beneficiaries who have, in turn, disposed of them.” Kganyago said.
The order prohibits the various companies from dealing with the funds held in the bank accounts and assets.
Kganyago also maintained that the SIU would forthwith launch review proceedings in the Special Tribunal within the next 30 days and also seek an order against the service providers to pay back all profits as a consequence of their appointment.
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Political Bureau