The Special Tribunal has ruled in favour of the Special Investigating Unit (SIU) and set aside a 2015 tender that was awarded by the Free State Department of Health to HALO and Buthelezi HEMS CC (JV) to provide aero-medical services for emergency medical services to the provincial government.

When the tender was advertised, it was said to be for a period of 12 months, and it had a value of R96 million.

However, mid-air, the tender was unlawfully extended to three years, and HALO and Buthelezi HEMS CC formed a joint venture (JV) to fraudulently win it. The company has to pay back the money it gained from the tender.

Arguing before the tribunal, the SIU said procurement processes were contravened, as such an order against the JV to pay back the monies paid because of the unlawful, invalid and unconstitutional award of the tender and the unlawful extension of the contract, together with the applicable interest at the legal rate.

In his ruling, Judge Brian Mashile commented that the Department overlooked its own procurement agenda, thus rendering the process “seriously irregular,” hence, she ruled that it should be set aside. She also commented that the JV was aware of the irregularities of the tender.

“I wish to reiterate that on the facts of this matter, the JV, as a seasoned bidder in these types of tenders, was aware of the serious irregularities but chose to look the other way to ensure that the outcome was achieved. The transgressions were serious, requiring a declaration of invalidity. I have deemed it appropriate to set aside both the Bid and the contract,” Judge Mashile said in his ruling dated 5 June 2025.

He then ruled that the JV is to file with this Tribunal, within thirty (30) days of the order, an audited statement of expenses incurred, the income received and the net profit it would have made under the disputed tender and/or services contract.

“The parties must, within thirty days thereafter, obtain an independent audited verification of the details provided by the JV and file the audited verification with this Tribunal, alternatively, conduct a debatement exercise to determine all monies received from the Department in respect of the disputed tender and/or extension of the contract except the actual, reasonable and lawful out of pocket expenses that the JV may be able to prove that it has incurred in rendering the service. The Tribunal will thereafter determine the amount to be paid by the JV to the Department or to the SIU.”