Ecko Green ordered to pay back R1.7 million over dodgy PPE contract

Ecko Green Environmental Consulting (Pty) Ltd has remained mum after being ordered to pay back R1.7 million in 30 days.

The Special Investigating Unit (SIU) said the Personal Protective Equipment (PPE) contract for the taxi industry was declared irregular and unlawful. The SIU said its application to review and set aside a PPE contract awarded by the National Department of Transport in April 2020 was successful.

Last Wednesday, the Special Tribunal reviewed and set aside a PPE contract worth R8 072 000 that was awarded by the Transport Department to Ecko Green Environmental Consulting (Pty) Ltd to supply the taxi industry with PPE during the Covid-19 pandemic. The tribunal ruled that the procurement process that led to the awarding of the contract was declared irregular and unlawful.

SIU spokesperson, Kaizer Kganyago, said Ecko Green was awarded the PPE contract despite not being on the department’s supplier database and its name was supplied by a senior South African National Taxi Council (Santaco) official. Kganyago said the company was ordered to pay the department R1 701 000 plus interest, within 30 days from the date of the order. This amount represents profit derived from the PPE contract.

“The SIU welcomes the Special Tribunal judgment. The outcome of the review application is part of the implementation of the SIU’s investigation outcomes and consequence management to correct wrongdoing and recover financial losses suffered by the State,” said Kganyago.

Additionally, he said: “An investigation by the SIU revealed that Ecko Green was not registered on the government’s Central Supplier Database (CSD) when it was awarded the contract. Ecko Green edited details of another company on CSD in April 2020 for the purpose of submitting bid documents to the department.” Kganyago said SIU traced a payment of R220 000 made by Ecko Green from PPE contract to a company linked to the then-CEO of Santaco, Nkululeko Buthelezi.

“Buthelezi is the one who handed a list of suppliers to the transport department, which included Ecko Green. When questioned about the payment, Ecko Green director Sharon Bhimjee claimed that the funds were for ‘rendered advisory services’ by Buthelezi and were not associated with the Ecko Green contract,” he said. President of the Special Tribunal, Judge Lebogang Modiba, rejected this explanation.

“This coincidence is far-fetched, particularly given that Buthelezi is the one who provided the department with the list of companies to be invited to provide quotations for PPEs. That a company that is on the list of suppliers Santaco provided to the department is awarded the tender and makes a payment to a company associated with Buthelezi is a rather far-fetched version,” said Modiba.

Furthermore, Modiba stated that had Ecko Greens declared its relationship with Buthelezi and disclosed the conflict of interest to the department, Ecko Green would have been excluded from the bidding process. Ecko Green’s failure to disclose Bhimjee’s business associate’s relationship with Buthelezi is grossly irregular, Judge Modiba found.

In another case in the same application to review and set aside a contract between C-Squared Consumer Connectedness Pty Limited and the Transport Department, the Special Tribunal dismissed the application. “The SIU is studying this part of the judgment and will decide on the next step once the study is completed,” said Kganyago

The SIU was, in terms of Proclamation R23 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by State institutions relating to PPE procurement together with the conduct of State employees.

The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.

The Star contacted Ecko Green Environmental Consulting (Pty) Ltd, but at the time of print, there was no response. Mmatshikhidi Rebecca Phala, national spokesperson of Santaco, said during the time when the Department of Transport issued the contract to offer PPE to the taxi industry, Buthelezi was no longer with the company.

“As such, all endeavours that have been outlined in the SIU media statement, we never undertook as per the mandate of Santaco. We’ve already explained these realities to the SIU a lot earlier before. To this effect, we have no further comments to make on this matter,” said Phala.