Hamilton Ndlovu, the flamboyant tenderpreneur who became famous after posting on social media his fleet of luxury cars after scoring a R172-million tender, has been ordered to pay back the money.
The Special Tribunal ordered Ndlovu and his associates to pay back R158-million scored in personal protective equipment (PPE) tenders awarded by the National Health Laboratory Service (NHLS).
According to the Special Investigating Unit (SIU), the tenders, worth R172-million, have been declared invalid and unlawful.
“Frozen properties and funds belonging to Ndlovu and associates were forfeited to the state,” the SIU said in a statement on Tuesday. This after the SIU released the findings of its investigation in January that showed Ndlovu used a series of companies to compete for PPE contracts worth millions of rands.
Ndlovu made headlines in 2020 after a video of his fleet of luxury cars went viral on social media. The SIU and NHLS obtained a Special Tribunal order to probe and prohibit Ndlovu from disposing of his assets.
In 2021, he applied to review the order and his application was dismissed in December of that year.
In its investigation, the SIU uncovered that a R72-million tender for the provision of PPE was awarded to entities belonging to Ndlovu and Feliham, a company owned by his spouse.
According to media reports, Feliham was initially restricted through the central supplier database from doing business with the government, however, the NHLS officials circumvented the restriction and awarded the company R14 475 500 for over 2-million surgical shoe covers.
The reports also revealed that Ndlovu received a R3-million tender from the NHLS in 2019 to build a laboratory in Gqeberha. According to the SIU, the NHLS awarded a R3-million tender to Ndlovu in 2019 for the building of a prefab laboratory.
Although Ndlovu was indirectly linked to some of the companies that he slandered the funds from, the SIU said NHLS paid R172-million to those entities.
It is alleged that the entities that were awarded PPE contracts made payments to Ndlovu’s account and the payments were later diverted to Feliham and Hamilton Holdings. R42-million was allegedly transferred to his personal account.