SIU freezes R27m worth property in NC PPE fraud scandal

Staff Writer| Fri, 5 Dec 2025

The Special Investigating Unit (SIU) has obtained an interim preservation order to freeze three high-value properties connected to the alleged looting of nearly R27 million from the Northern Cape Department of Health during the COVID-19 PPE procurement rush.

The order, granted by the Special Tribunal, prevents the sale or transfer of two properties in Kimberley and one in Bryanston, collectively valued at about R8.4 million.

The assets are believed to have been purchased using the proceeds of a fraudulent PPE contract awarded in 2020.

According to the SIU spokesperson,Kaizer Kganyago,Macronym 37 (Pty) Ltd received a R26.96 million contract to supply 50,000 coveralls, 250,000 surgical masks and 250,000 FFP2 masks a deal approved by the department’s then CFO, Daniel Gaborone, and acting head of department, Dr Dion Theys.

HOD Dr Theys. Picture:

Inflated orders, unlawful deviation

Investigators uncovered what they describe as a premeditated and unlawful procurement process. A deviation used to bypass National Treasury rules was drafted days before the relevant instruction existed, proving an intentional manipulation of the system.

The department’s own internal needs assessment never requested coveralls and required only 30,000 N95 masks. Instead, the awarded contract ballooned to 50,000 coveralls and 250,000 high-spec masks resulting in an over-expenditure of more than R8 million on masks alone.

Fictitious invoices and financial laundering

Forensic analysis found that invoices submitted by sub-contractor Masedi Star were fabricated two years after the supposed deliveries. Bank records also show that instead of the R13.2 million claimed, only R2 million was actually paid to the sub-contractor.

Within days of receiving government funds, Macronym allegedly diverted money for personal use, including:

R3.86 million in property purchases

R4.2 million transferred to Aphiwokuhle Holdings

Over R8.2 million to Sibisi family-linked entities

R1.12 million withdrawn in cash

Funds were also used for a jacuzzi, a high-end sound system, vehicle purchases and school fees.

Collusion and poor oversight

At the time of the award, Macronym was not tax-compliant and was not registered as a medical supplier. The SIU uncovered WhatsApp messages between Macronym director Christopher Somandla Sibisi and former CFO Gaborone during the procurement process.

The investigation also found that the department lacked proper stock records. A shortfall of 44,438 coveralls could not be accounted for, and the Auditor-General (AG) could not verify deliveries.

The investigation falls under Proclamation R23 of 2020, which authorised the SIU to probe COVID-19 PPE corruption across state institutions. Evidence of criminality uncovered during the probe will be referred to the National Prosecuting Authority for possible prosecution.

News Junction (Gold Standard)

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