Johannesburg - The Gauteng Department of Health has paid Royal Bhaca Projects at least R80 million for its personal protective equipment services over the past two weeks alone through a front company known as Ledla Structural Development, the Sunday Independent can reveal.
Ledla, based in Boksburg, received the payments between July 20 and 27 even though it did not appear on the original list of 75 successful bidders who benefited from R2.2 billion worth of PPE contracts in Gauteng. However, neither he nor Gauteng Health MEC Bandile Masuku, who also claimed the contract was cancelled, produced a cancellation letter. Instead, King Madzikane claimed he did not take legal action to recoup his money because he was willing to “assist” the government where possible.
A comparison shows that the two companies were allegedly awarded two contracts of the same value, supplied the same items, with the same quantity and prices. The Sunday Independent was previously told the total value of Royal Bhaca’s contracts was R139m but only had proof for two orders worth R125m. Its contracts, excluding the one for the delivery of 1 million container infectious waste, is also worth R125m.
Sources said Royal Bhaca’s payment was redirected to Ledla, which was suddenly given a purchase of the same value after nepotism concerns were raised internally.