Special Investigating Unit granted order to add more companies to Digital Vibes review application

13 April 2022

The Special Investigating Unit (SIU) welcomes the Special Tribunal order granting the Unit permission to add Sithokozile Khalipele Mkhize, the wife of Dedani Mkhize, and four other companies which allegedly received money from Digital Vibes to the review application of the R150 million Covid-19 communication contract awarded by the Department of Health.

On Wednesday, 13 April 2022, the Special Tribunal ordered that the SIU can add Sithokozile Mkhize, All-Out Trading (Pty) Ltd owned by Dedani Mkhize, the son of former health minister Dr. Zweli Mkhize, Sirela Trading (Pty) Ltd owned Mr. Sokhela, Tusokuhle Farming (Pty) Ltd owned by both Sokhela and Dedani, and Cedar Falls Properties 34 (Pty) Ltd owned by Dr. May Mkhize, the wife of Dr. Mkhize.

Sithokozile Mkhize and the four companies allegedly received money amounting to more than R5 million from Digital Vibes purportedly for services rendered. The SIU is of the view that the beneficiaries of Digital Vibes money have no right to retain the proceeds of the Covid-19 contract. The SIU seeks orders from the Special Tribunal against the Digital Vibes beneficiaries for the repayment of the proceeds.

The SIU seeks to have two contracts awarded to Digital Vibes reviewed and set aside for lack of compliance with the applicable constitutional, statutory and regulatory provisions. The first contract is the National Health Insurance (NHI) contract and the second one is the Covid-19 media campaign contract. The Department of Health made payments to Digital Vibes in the amount of R150,002,607.80 comprising of R25,022,534 paid in respect of the NHI contract and R124,980,073 in respect of the Covid19 contract.

The outcome of the Special Tribunal order is a continuation of implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by State institutions and/or to prevent further losses.

Fraud   and   corruption   allegations   may   be   reported   via   the   following    platforms: [email protected](link sends e-mail) / Hotline: 0800 037 774

Issued by Kaizer Kganyago, Head of Stakeholder Relations and Communications Special Investigating Unit, 14 February 2022