The report on Covid-19 procurement fraud which exposes but the tip of the corruption iceberg, lays out in detail the extent of the feeding frenzy of taxpayers’ money meant for procurement of Covid-19-related goods and services in state departments and institutions. The Special Investigating Unit report released after 18 months of scrutiny name names and points to how corruption and corrupt practises have become an almost impenetrable web. A major part of the findings corroborate media exposes into the corrupt dealings.
From the Digital Vibes scandal and the Eastern Cape’s scooter ambulances to the multi-million rand contract between controversial businessman Hamilton Ndlovu and the National Health Laboratory Service, the SIU said it investigated 5,467 contracts awarded to 3,066 service providers with a total value of R14.3bn. In one instance, the SIU found that Mlangeni Brothers Events overstated its prices by more than R12m for the supply of 100 000 boxes of powdered and non-powdered gloves and that Kabelo Lehloenya and Thandiwe Pino, the former CFO and former chief director for supply chain and asset management of the Gauteng Department of Health respectively, had not followed proper procurement procedures in awarding the contract to Mlangeni. So far, the SIU has opened criminal charges against Mlangeni and the former head of department Mkhululi Lukhele.
A spot of good news is that the SIU closed investigations into 100 awarded contracts totalling just over R1.5bn after they found no evidence of irregularity in the supply chain management processes.
Reacting to the SIU report President Ramaphosa expressed dismay at the perpetrators “who believed they could exploit a moment of national vulnerability to enrich themselves and those with whom they colluded to abuse public resources”.
He said the investigation demonstrates “our determination to root out corruption and to deal with the perpetrators”.
Together with the first part of the damning Zondo Commission report into state capture also made public this month, it’s not unreasonable to demand action. And action, Mr President, speaks louder than words!
Coincidentally, Transparency International, a global movement working towards ridding business, governments, civil society and ordinary people of corruption, identified South Africa as one of the 131 countries that have over the past 10 years stagnated in its fight against corruption.
In the markets, the rand is biding within its wider R15.10-15.40 band as markets wait in anticipation for tonight’s FOMC outcome. The unit opened slightly firmer at R15.21 against the US dollar.
Commodity prices are relatively unchanged from last night, with gold trading at $1,847, platinum at $1,025 and palladium just above the $2,180-mark, reports TreasuryONE.
“Geopolitical tension between Ukraine and Russia is creating concerns over the supply of energy sources in Europe and is keeping oil prices at elevated levels. Brent Crude rose to $88,20 overnight but has since dropped slightly while WTI is at $85.50.
“Another metal to watch because of the sanctions is aluminium, as there can be possible supply disruptions, and we have already seen the price creeping higher, currently above $3,000 per tonne,” comments the forex trading house.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
IMF cuts forecast for South African growth – Fin24
The businesses hit hardest by liquidations in South Africa right now – with jobs not coming back – BusinessTech
Ex SARS employee gets 12 years jail time for R6-million fraud, money laundering – Fin24
Global Business
Escalated Russia-Ukraine conflict would keep inflation higher longer – IMF – Reuters
House unveils China, Chips Bill, paving way for Senate deal – Bloomberg
Global chip shortage: US says firms’ stocks have plunged – BBC News
Markets
Asian markets enjoy much-needed rally as Fed’s big day arrives – AFP
Gold investors don’t care about the stock market’s taper tantrum – Bloomberg
Oil down, investors take profit ahead of Fed policy decision – Investing.com
Tech
Microsoft beats expectations with $18.8bn profit – The Guardian
Elon Musk tempts McDonald’s to accept Dogecoin — McDonald’s replies ‘only if Tesla accepts Grimacecoin’ – Bitcoin.com
Out-of-control SpaceX rocket on collision course with the moon – The Guardian
Opinion/In-depth
Rising tide of anti-migrant rhetoric mirrors South Africa’s shameful track record – Daily Maverick
COVID in South Africa shows the limits of using courts to fight political battles – The Conversation
Driver’s licence Snafu – lessons from New Zealand – Biznews
Video
Google sued over user location tracking – AP
The worst is yet to come – Sean Peche rings the alarm bells – Biznews
The rejected Dragons’ Den contestant now making millions – BBC News
Image credit: Pixabay
