Special Investigating Unit welcomes arrests of Lukhopes over PPE tender fraud

Special Investigating Unit (SIU) welcomes the arrests father and daughter over PPE tender fraud

The SIU welcomes the arrests of Makhonzandile Lukhope and his daughter Naledi Lukhope by the Hawks. The Lukhopes were arrested on charges of fraud, forgery and uttering to the value of R4 365 868.88 related to personal protective equipment (PPE) tender awarded by the Eastern Cape Department of Education (ECDoE) under the company names Amabongwe Building and Civil Contractors CC (“Amabongwe”) and Tsunami Civils.

The pair was arrested on Wednesday 20 July 2022 and appeared before the Zwelitsha Magistrates Court. They were both subsequently released on bail of R4000 and R2000 each. The matter has been postponed to 19 August 2022, Regional Court 5 in East London.

The arrests follow an SIU investigation authorized by the Proclamation R23 of 2020 by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by State institutions relating to PPE procurement together with the conducts of State employees.

The SIU investigation revealed that Mr Lukhope, through his company Amabongwe, allegedly committed fraud through a misrepresentation and with an intention to defraud the ECDoE. He unlawfully submitted a Contract of Lease, which had the effect of misrepresenting to the ECDoE that Amabongwe was operational in the Eastern Cape Province and had a business in the Province. This led to the ECDoE into awarding a contract to Amabongwe in the amount of R1 904 316.00.

Mr Lukhope also failed to disclose interest in Tsunami Civils, which belongs to his daughter, Miss Lukhope.

Furthermore, the SIU investigation revealed that Miss Lukhope, through her company Tsunami Civils, allegedly misrepresented and defrauded the ECDoE by unlawfully submitting a Contract of Lease, which had the effect of misrepresenting to the ECDoE that Tsunami Civils was operational in the Eastern Cape Province and had a business in the Province. Through the deceit, Miss Lukhope’s company received a total payment in the amount of R2 461 552.88, causing actual prejudice to the ECDoE.

All tenders awarded to the Lukhopes were restricted for businesses operating in the Eastern Cape.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU referred evidence pointing to criminal conduct that was uncovered during the investigation to the attention of the National Prosecuting Authority (NPA) for further action.

Source: Government of South Africa