Gauteng Department of Health became the epicentre of South Africa's COVID-19 procurement scandal, with R2.2 billion across 157 matters under investigation. The department's procurement collapse was systematic, multi-layered, and touched the highest levels of political power.
**The Diko-Royal Bhaca-Ledla Network**
The most politically explosive case involved presidential spokesperson Khusela Diko. Her husband, Thandisizwe Diko — Chief of the Royal Bhaca nation — directed Royal Bhaca Projects, which secured COVID-19 PPE contracts from Gauteng Health. To obscure the connection, Ledla Structural Development was used as a proxy company, securing a R139 million contract. The SIU found prices were inflated by 211% to 542% above market rates. R36 million in assets were frozen.
The SIU found no direct evidence that Khusela Diko personally intervened to award the contracts, but found she failed to disclose her financial interests — a serious breach of public service ethics for a senior Presidency official. Her disciplinary outcome: a written warning (August 2021). The ANC's National Disciplinary Committee cleared her of wrongdoing entirely. She did not return to the Presidency but was replaced by Vincent Magwenya in June 2022.
**MEC Bandile Masuku: Fired, Then Cleared**
Gauteng Health MEC Dr Bandile Masuku was fired by Premier David Makhura in October 2020 after the SIU found he "centralised the PPE procurement process for nefarious reasons" and failed his duties under procurement laws. He lost a court bid to overturn the SIU report. However, the SIU found no criminal conduct and no basis for civil action against him personally. The ANC NDC cleared him of wrongdoing. He was never reinstated.
**CFO Kabelo Lehloenya: The Approval Machine**
CFO Kabelo Lehloenya approved a R127 million commitment to Beadica 430/Iyasa Group for masks without any bid evaluation. She signed off on the Ledla Structural contract and other irregular procurements. She was dismissed from her position and faces SIU civil recovery proceedings.
**The Nkhane Contract: R257.4M Set Aside**
On 5 August 2024, the Special Tribunal declared Nkhane Projects & Supply's R257.4M PPE contract invalid. It was an unsolicited proposal — no competitive bidding, no deviation approval. The Tribunal ordered Nkhane to repay all profits.
**LNG Scientific: R113.2M Set Aside**
LNG Scientific's R113.2M contract was declared invalid. The Centurion-based company was not even registered on the Central Supplier Database when awarded the contract. They charged R55.50 per N95 mask for 500,000 masks — a massive markup.
**The R2.2 Billion Picture**
Total Gauteng Health under investigation: R2.2 billion across 157 matters. The department that was supposed to protect Gauteng's residents during a deadly pandemic instead became the primary mechanism for extracting wealth from the public health system. The consequences: healthcare workers inadequately protected, procurement funds diverted from medical care, and the assassination of whistleblower Babita Deokaran who tried to stop the looting.