The Special Tribunal has declared two personal protective equipment (PPE) contracts awarded by the Mpumalanga Department of Health to Vitae Zoe, worth a combined R9.1 million, unlawful and invalid. The ruling follows an investigation by the Special Investigating Unit (SIU), which uncovered serious irregularities in the procurement process.
Contracts Awarded Irregularly
The contracts, issued during the COVID-19 pandemic in the 2020/2021 financial year, were for the supply of 3,000 infrared non-contact thermometers, with an additional batch included in a second deal. SIU spokesperson Kaizer Kganyago revealed that the department sourced quotations from only one company—Vitae Zoe—in violation of procurement laws.
“The law requires competitive bidding, but in this case, only one company was approached,” Kganyago said. “Furthermore, the devices were ordered even before the procurement process was finalized, indicating clear collusion.”
Massive Overpricing Uncovered
Investigators also found that Vitae Zoe inflated prices by 84%, selling each thermometer to the department for R2,280—far above the reasonable markup of 25-30%. The SIU estimates that the overpricing cost the state nearly R3 million.
“The company purchased the thermometers for R1,200 each but charged the government almost double,” Kganyago explained. “This is blatant exploitation during a health crisis.”
Recovery Process Underway
The SIU has ordered Vitae Zoe to submit a repayment plan within 15 days of a formal demand. Kganyago confirmed that the company still exists and has submitted financial records, but if it fails to repay, the SIU will pursue its directors and assets.
“Even if the company dissolves, we will recover the money from those responsible,” he said.
Officials Face Disciplinary Action
The SIU has also implicated department officials in the scheme, referring evidence of collusion for disciplinary action and possible criminal prosecution.
“This was not just negligence—it was deliberate fraud during a pandemic that claimed many lives,” Kganyago said. “Those involved must be held accountable.”
The ruling is part of the SIU’s broader crackdown on COVID-19 procurement corruption, which has seen multiple contracts overturned and millions recovered.
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