SIU progress report on COVID$-19$ PPE procurement investigations$$ Digital Vibes investigation

Public Accounts $($SCOPA$)$

Parliamentary Monitoring Group $07$December $2021$

SIU briefing: Investigations into COVID$-19$ procurement

Adv Andy Mothibi, Head, SIU, said that the SIU appreciated the opportunity to update the Committee on its investigations

into the irregularities and other procurement infractions committed during the COVID$-19$ pandemic. As well as PPE

procurement, the SIU had investigated, for example, procurement relating to the infrastructure part of the COVID$-19$

response. The current briefing was based on the SIU$$s sixth progress report. The seventh and final report would be

submitted to the President on $10$ December.

He said that as the SIU moved towards concluding its investigations, it would be focusing primarily on ensuring that

consequence management was implemented. In some cases, consequence management entailed civil litigation, mainly in

the Special Tribunal. The SIU also made referrals to state institutions for disciplinary action$$ referrals to the National

Prosecuting Authority $($NPA$)$ for criminal prosecution$$ and referrals to other regulatory authorities. Additionally, the SIU$$s final

report would include systemic recommendations, which it would probably engage with the National Treasury about.

Between April $2020$ and June $2021,$ R$138\mathrm{.}8$ billion had been spent on the COVID$-19$ response. The SIU had investigated

contracts amounting to R$14\mathrm{.}8$ billion $(11\%).$ The vast majority of the contracts under investigation fell under provincial

governments: of the R$32$ billion that provincial governments had spent on COVID$-19-$related contracts, R$11\mathrm{.}6$ billion $(36\%)$

was under investigation.

The SIU was investigating $5054$ contracts, awarded to $2686$ service providers. At the time of the report, the investigations

had been finalised in respect of $1461$ contracts $(29\%),$ amounting to R$7\mathrm{.}3$ billion, and had not yet begun in respect of $7\%.$

The completed investigations had found irregularities in $555$ contracts $(38\%)$ worth a total of R$3\mathrm{.}1$ billion.

Of the investigations outstanding at the time of the report, most were in Gauteng, where the SIU was still investigating $1777$

contracts worth R$4\mathrm{.}5$ billion $$ with the high$-$value contracts concentrated in the provincial Department of Education and in

infrastructure projects $$ and in Mpumalanga, where it was still investigating $605$ contracts worth R$572$ million. Adv Mothibi

said that the picture had changed immensely since the report had been submitted $$ all investigations were now complete or

underway, and he thought that investigations had to be finalised in only two provinces.

Adapted from: https:$//$pmg$.$org.za$/$committee$-$meeting$/34038/$

Question $1(15$ Marks$)$

With reference to the extract and with practical examples, examine the notions of irregular expenditure and procurement

infractions and provide a utilitarian explanation of why they constitute an ethical crisis in the public sector.

$$ Introduction

$$ The notion of irregular expenditure and procurement infractions with examples from the extract

$$ A utilitarian explanation of why these constitute and ethical crisis in the public sector.

$$ Conclusion