Court Orders PPE Supplier to Face Legal Action for Irregularities

Pro Secure, a company accused of improperly benefiting from a multi-million rand deal to supply personal protective equipment (PPE) during the Covid pandemic was issued summons by the Special Investigating Unit (SIU) to recover millions of rands after uncovering irregularities in the Limpopo Department of Health’s procurement processes. Pro Secure attempted to challenge the legal basis of the SIU's actions, but the tribunal dismissed these objections and ordered the company to cover the legal costs.

Originally, Pro Secure had quoted about R7 million for supplying 5,000 hand sanitizers. However, they ended up delivering vastly more units at significantly higher costs, resulting in a payment of nearly R162 million—far exceeding the initial quote.

The case highlights the need for accountants to be aware of 'secret profits' and excessive pricing of products relating to government contracts.