Makwethu: 'Clear indication' of fraud in spending of COVID-19 funds
Auditor-General Kimi Makwethu says there are clear indications of fraud with the procurement of protective gear during the COVID-19 pandemic.
Makwethu released the findings of a report into the spending of government's multi-billion rand COVID-19 relief package in Pretoria on Wednesday.
He said the full R500 billion was not audited, as R270 billion was never intended to flow through the department and agencies of government.
The amount subjected to scrutiny was R230 billion.
After the coronavirus reached South African shores in March, Treasury issued guidelines on maximum prices that government departments and companies should pay for PPEs.
In April, following a public outcry at allegations of tender irregularities, President Cyril Ramaphosa asked Makwetu and his office to audit the procurement processes.
"Contrary to these instructions, our analysis of orders placed by health departments identified that some items were priced at more than double and even five times the prescribed price.
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"Similar instances were identified in the procurement of PPE in the education sector, where the national and provincial departments are not procuring PPE at market-related prices," Makwethu said.
He said that schools did not receive enough masks for pupils and teachers and the quality was not up to standard.
"The problem with the quality of PPE purchased is most evident in a few schools that were visited where the masks provided were not to specifications and were often one-size-fits-all (whether for a child or an adult).
"Instances were also found where specified PPE items ordered by a health department were substituted by the supplier with items of a lower specification, which the department accepted and even paid for at the higher price of the originally ordered item."
Makwethu said some issues, from both education and health department, included conflicts of interest and businesses without valid tax clearances.
Auditors have also identified clear cases of fraud, but more information will be provided in subsequent reports.
