Dodgy Free State Health Department Tender Set Aside, SIU Authorised to Recover R532m

UNLAWFUL: The company was paid millions, despite that it did not have a contract in place. Photo: SIU

The Special Tribunal has set aside a tender awarded by the Free State Department of Health to a little-known medical company, Buthelezi EMS, without a contract.

The tender for inter-facility emergency medical services was declared unlawful, unprocedural and unconstitutional, with the Special Investigating Unit (SIU) authorised to recover monies paid out by officials.

According to an SIU statement, the unit instituted civil proceedings to review and set aside the irregular tenders awarded to Buthelezi EMS and subsequent contracts to sister companies.

The department paid R532,789,770.12 to four companies linked to the owner, Mr Buthelezi, despite having no valid contracts.

“The payments were made as follows: Buthelezi One Stop Emergency Med: R40,619,506.40, Buthelezi One Stop EMS: R4,739,819.04, Buthelezi EMS: R305,196,897.00 and B EMS: R182,233,548.12,” the SIU said.

It added that Buthelezi and associated companies have been ordered to submit audited statements detailing expenses incurred, income received and profits made under the unlawful contracts.

“Furthermore, the Tribunal ruling, dated 5 May 2025, ordered that Buthelezi pay the legal costs of the application and the SIU’s legal representatives,” the SIU added.

The investigation was initiated through Proclamation 42 of 2019. The Tribunal’s order forms part of implementing SIU findings and recovering state losses from corruption or negligence.

The SIU is empowered to institute civil action in the High Court or a Special Tribunal to correct wrongdoing from corruption, fraud or maladministration.

Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for further action.

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