SIU obtains order to freeze R532 million worth of property

追加: 2026-05-29

[00:00:00]The special investigating unit saying has won an order in the special tribunal to freeze a property that's linked to the businessman Telo Samuel Butter Lei.

[00:00:08]BSIU says it relates to a tender involving a company called But Lei EMS which short received large contracts from the Free State Health Department.

[00:00:17]Selby Makato is the spokesperson at the SIU. Selby, good afternoon to you. Why did you go to the special tribunal to freeze this property?

[00:00:26]>> Thank you very much, Steven. Good afternoon to the viewers and thank you for having us on the show. This is a result of the proclamation proclamation of 2019 that actually granted the SIU wide ranging legal investigative powers actually to probe into the various allegations of irregularities in the awarding of multiple multi-million rent contracts from the Free State Department of Health into EMS and associates. We found that uh this awarding of the contracts had not been done properly, had not followed procurement procedures and there were serious violations in relation to that.

[00:01:08]So based on the outcome of the investigations and the gravities thereof, we approached the special tribunal to seize and preserve this properties. There are two properties, one in routing, one in the free state and quite a number of others that we are also looking into. And by and large the order of the special tribunal is to the effect that this assets ought to be preserved. They need not be sold. They cannot be transferred. They cannot be encumbered with or dealt with in whatsoever manner pending the outcome.

[00:01:41]The enforcement of the preservation order.

[00:01:43]>> From what I can see, his company's got tenders of around half a billion rand just over half a billion rand from the Free State Health Department. I presume it's those tenders that you are investigating. Do you know if he provided if his companies provided proper services in return for that money?

[00:02:01]>> Well, uh it is a contestable area in terms of the what actually has been done to to to to relate to the outcome thereof. But what we found is that uh based on the investigations it was not clear as to actually what was done because we looked at the procedural aspects in terms of the awarding of the contract. We found that the the the decision making process was questionable because the the the various requirements were not complied with or were not met relating to the procurement or the allocation thereof. So it is on this basis that even when we make we made a case to the special tribunal, we made a very compelling case to the effect that there also need to be a caveat that is put on these properties so that the title deeds cannot be transferred and up to a point wherein we seek to recover the money. If the properties have to be sold in the ultimate to for the monies to be paid back that will also be taken into consideration.

[00:03:05]Is he allowed to live in the properties while this is underway? While they've been frozen?

[00:03:12]>> Yes. Uh there is no legal provision actually excluding him not to stay in those houses. One what is the of primary importance is the fact that these properties cannot be sold, cannot be transferred, cannot be leased, cannot be donated up until the the the preservation, the enforcement thereof is in effect. relating to him being there.

[00:03:35]There is no finding on that.

[00:03:37]>> Okay. I mean, is it just a peli you're investigating in relating in relation to these contracts? I mean, we all know Selby when tenders are awarded there have to be at least two people involved, one on each side. Are there other people you're investigating as part of the same proclamation?

[00:03:54]>> Yes. uh remember uh in a proclamation and especially in terms of the financial magnitude you're talking of an amount of over 500 million I think is around 532 million which was awarded in stages this obviously could not have been done alone by a person obviously he had copies or documents that he had failed he had to comply with but ultimately the decision making process to award him this contract tax without following proper procurement, without following proper supply chain management procedures. That is why what is that that is of fundamentally interest but also what is of interest to the special investigating unit under the circumstances are the people who were sitting there who said on the beat evaluation, beat adjudication and finally granted this contract. The one of the things that we have actually come up with is that in the process of investigation as we we do come across such evidence wherein we need to make systemic recommendations to the department to the provincial government of the free state. I can confirm that we have done so and part of the consequence management is to ensure that there are steps taken against those who are involved in the awarding of the contract.

[00:05:14]>> Thank you very much indeed. Selby McCorto is the spokesperson of the special investigating unit. Selby, thank you.