South Africa: MTN Loses Special Tribunal Application

2 August 2024
SAnews.gov.za (Tshwane)

Telecommunications giant MTN has lost a Special Tribunal exception application in connection with the alleged irregular supply of mobile devices for COVID-19 screening to the Limpopo Department of Health.

This after the Special Investigating Unit (SIU) launched an investigation into the affairs of that department which - the unit insists - "revealed that MTN made an unsolicited proposal to supply the department with 10 000 cell phone devices intended for COVID-19 mass screenings" in that province.

"This proposal cost the department R10 million. This falls outside the prescripts of the Public Finance Management Act (PFMA). The Department of Health accepted the proposal and subsequent delivery of the devices.

"The SIU's investigation also found that the former Head of the Department, Dr Thokozani Florence Mhlongo, as the accounting officer, allegedly exposed the department to a wasteful expenditure when she authorised the procurement and payment of 10 000 cell phones to the value of R10 million for Covid-19 household screening.

"The department could only manage to distribute 388 of the 10 000 cell phones between September 2020 and March 2021 and the cell phones were distributed without the required screening application," the SIU said.

The corruption busting unit added that it has instituted civil action in the Special Tribunal "to review and set aside the contract and recover financial losses suffered by the Limpopo Department of Health".

"So far, the SIU has successfully interdicted the pension payout of Dr Mhlongo after she resigned from her position as head of the department in the face of disciplinary action.

"The SIU is also empowered to institute civil action in the High Court or a Special Tribunal in its name to address any wrongdoing uncovered during investigations related to acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action," the unit said.

Read the original article on SAnews.gov.za.

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