Competition Commission to prosecute ‘irregular’ PPE contracts

Competition Commission to prosecute ‘irregular’ PPE contracts

The Competition Tribunal is set to prosecute two companies in connection with the irregular procurement of personal protective equipment. 

Competition Commission
Pic Courtesy: Sibahle Motha

The first is against Gauteng-based BlueCollar Occupational Health and KwaZulu-Natal-based Ateltico Investment.

 The second is against Tsutsumani Business Enterprises CC based in Gauteng.

Commission spokesperson, Siyabulela Makunga says both cases emanate from the PPEs bought by the South African Police Service. 

In March, BlueCollar bid for a contract to supply bulk hand sanitiser in 25 litre containers.

BlueCollar was appointed and subsequently approached Ateltico for funding. 

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The commission is concerned that the funding arrangement between the BlueCollar and Ateltico contributed to the excessive mark-up.

"BlueCollar and Ateltico entered into a memorandum of understanding in terms of which they agreed to share the profits earned from the transaction,” says Makunga. 

“BlueCollar then supplied SAPS with 10 000 25Lt containers of hand sanitisers at the price of R3,550 per 25Lt container with a gross mark-up of 123%, a price that the commission found to be excessive.”

The police also procured 500 000 surgical face masks from Tsutsumani at R32.50 per mask.

Makunga says this was a mark-up of 87%. 

"The commission has noted the report of the Auditor-General of South Africa pointing to overcharging by suppliers of PPE to the public sector. 

"The commission is following up on the report and is engaging with the AG’s office, National Treasury and the Special Investigations Unit to sift cases for prioritisation.”

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