In this matter, the SIU sought to have two contracts which the National Department of Health (NDOH) awarded to Digital Vibes reviewed and set aside for lack of compliance with the applicable constitutional, statutory and regulatory provisions. The first contract is the National Health Insurance (NHI) contract. The second is the Covid-19 media campaign contract. NDOH made payments to Digital Vibes in the amount of R150 002 607.80 comprising of R25 022 534.00 paid in respect of the NHI contract and R124 980 073.00 in respect of the Covid-19 contract.
The SIU also sought to hold Digital Vibes, Tahera Mather, Naadhira Mitha, Radha Hariram and Dr Zwelini Lawrence Mkhize (former Minister Mkhize) jointly and severally liable for the repayment of approximately R150 million NDOH paid Digital Vibes.
Background
On 17 June 2021, the Special Tribunal granted an order preserving funds in the amount of approximately R22 million held in several accounts at various financial service providers on the basis that the funds were prima facie unlawful proceeds derived from the Covid-19 contract that the NDOH unlawfully and irregularly awarded to Digital Vibes.
Having received that order, the SIU brought two applications to join Ms Khubane Ngobese, at the time a senior administration officer of the NDOH, and 5 other companies to the matter, on the basis that it was established that these parties prima facie unlawfully received various amounts from a party related to Digital Vibes via payments that Digital Vibes received from the NDOH according to the Covid-19 contract. The applications were brought to increase the capability of the SIU to recover the money unlawfully derived from the Covid-19 contract. These applications were successful, and as such the 5 companies sought leave to appeal the Tribunal’s decision to join them, alleging that the test used by the Special Tribunal to join them to the matter was incorrect as they did not receive any money from government, but rather from third parties, and the SIU is only able to recover money paid by government.
On 7 September 2022, the Special Tribunal made an order dismissing the companies’ application for leave to appeal, declaring that they have an automatic right of appeal to a full bench of the High Court.
Timeline of events
| Date | Event |
|---|---|
| November 2019 | NDOH awards NHI contract to Digital Vibes. |
| March 2020 | Scope of NHI contract extended to include Covid-19 media campaign. |
| 17 June 2021 | Special Tribunal grants preservation order for approximately R22 million linked to Digital Vibes. |
| 13 September 2021 | SIU’s ex parte application to join Ms. Ngobese to the review application granted. |
| 19 October 2021 | SIU files application to join additional respondents, including companies linked to Dr. Mkhize’s family. |
| 13 April 2022 | Special Tribunal approves SIU’s application to add new respondents to the review application. |
| 7 September 2022 | Special Tribunal dismisses application for leave to appeal by five companies, confirming their joinder, noting that an automatic right of appeal exists. |
Conclusion
The SIU’s investigation into the Digital Vibes contracts underscores the importance of transparency and accountability in public procurement processes. The Special Tribunal’s rulings facilitate the recovery of misappropriated funds and reinforce the commitment to uphold ethical standards within public institutions.
Read more:
https://lawlibrary.org.za/akn/za-jhb/judgment/zast/2021/10/eng@2021-06-17
https://lawlibrary.org.za/akn/za/judgment/zast/2022/69/eng@2022-03-08
https://lawlibrary.org.za/akn/za/judgment/zast/2022/59/eng@2022-09-07