Adagio Therapeutics Provides COVID-19 Antibody Program Updates as well as Business Highlights and Second Quarter 2021 Financial Results

New Data Supporting Potential of ADG20 for Both the Treatment and Prevention of COVID-19 to be Presented at IDWeek 2021

Patient Population in Global EVADE Phase 2/3 Clinical Trial of ADG20 Expanded following IDMC Assessment

$355.8 Million IPO Completed to Fund Continued Advancement of Portfolio of Antibody-based Solutions for Infectious Diseases with Pandemic Potential

WALTHAM, Mass., Sept. 20, 2021 (GLOBE NEWSWIRE) — Adagio Therapeutics, Inc., (Nasdaq: ADGI) a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of antibody-based solutions for infectious diseases with pandemic potential, today reported updates on its lead COVID-19 antibody program, ADG20, as well as recent business highlights and second quarter 2021 financial results.

“Across the globe, COVID-19 continues to be a significant health crisis affecting nearly every age group. With the continued emergence of new variants, broadly neutralizing therapies that can be used for both the treatment and prevention of the disease are critical to address the current endemic as well as potential future outbreaks,” said Tillman Gerngross, Ph.D., co-founder and chief executive officer of Adagio. “Our team is working closely with our global CRO partners on the execution of our ongoing global clinical trials of ADG20, STAMP and EVADE, while also preparing for the anticipated worldwide commercialization of ADG20, if approved.

“ADG20 is a highly differentiated antibody that we are advancing through pivotal trials for both the treatment and prevention of COVID-19. We are pleased by the recent assessment of unblinded data by the IDMC for the EVADE trial, and their support of our plans to expand enrollment to include adolescents and pregnant or nursing women,” said Lynn Connolly, M.D., Ph.D., chief medical officer of Adagio. “To date, we have generated a compelling data package for ADG20 that includes broad neutralization of the original SARS-CoV-2 virus and the known variants of concerns in in vitro models as well as a favorable pharmacokinetic and tolerability profile in our Phase 1 trial. Further, at this year’s IDWeek, we will release additional data from our Phase 1 trial as well as details regarding our dose selection process for treatment and prevention, which we believe further support the important role this novel antibody can play in combatting the ongoing pandemic.”

ADG20 COVID-19 Program Highlights

  • New ADG20 Data to be Presented in Multiple Posters during IDWeek: At the IDWeek 2021 Virtual Conference, Adagio plans to present additional data highlighting the potential for ADG20 to provide protection from COVID-19 for up to one year based on its extended half-life in humans combined with its broad and potent neutralizing ability demonstrated in laboratory testing. In addition, the data support the evaluation of a 300mg dose, delivered as a single intramuscular injection, in the ongoing Phase 2/3 STAMP (treatment) and EVADE (prevention) global clinical trials. The data will be presented in multiple posters, which will be available to registered attendees on the virtual platform throughout the duration of the conference, being held from September 29 – October 3, 2021. The presentations include:
    • 1086: A Whole-Body Quantitative System Pharmacology Physicologically-Based Pharmacokinetic (QSP/PBPK) Model that a priori Predicts Intramuscular (IM) Pharmacokinetics of ADG20: an Extended Half-life Monoclonal Antibody Being Developed for the Treatment and Prevention of Coronavirus Disease (COVID-19)
    • 633: Preliminary Results from a Phase 1 Single Ascending-Dose Study Assessing Safety, Serum Viral Neutralizing Antibody Titers (sVNA), and Pharmacokinetic (PK) Profile of ADG20: an Extended Half-Life Monoclonal Antibody Being Developed for the Treatment and Prevention of Coronavirus Disease (COVID-19)
    • 1089: Use of a Whole-Body Quantitative System Pharmacology Physiologically-Based Pharmacokinetic (QSP/PBPK) Model to Support Dose Selection of ADG20: an Extended Half-Life Monoclonal Antibody Being Developed for the Prevention of Coronavirus Disease (COVID-19)
    • 1088: A Whole-Body Quantitative System Pharmacology Physiologically-Based Pharmacokinetic (QSP/PBPK) Model to Support Dose Selection of ADG20: an Extended Half-Life Monoclonal Antibody Being Developed for the Treatment of Coronavirus Disease (COVID-19)
  • Patient Population Expanded in EVADE following IDMC Data Assessment: The independent data monitoring committee (IDMC) for the EVADE Phase 2/3 trial of ADG20 for the prevention of COVID-19 recently provided a recommendation to expand Phase 3 trial enrollment to include adolescents 12 years and older and pregnant or nursing women, as well as a decrease in the protocol-specified, in-clinic post injection monitoring time. The IDMC’s recommendations were based on their review of unblinded safety and tolerability data through the Day 28 post-treatment visit from 200 participants enrolled in the Phase 2 lead-in portion of the trial.
  • Partnership with Biocon Biologics Expands the Reach of a Potent and Broadly Neutralizing COVID-19 Antibody Treatment to Patients in India and Select Emerging Markets: In the second quarter of 2021, Adagio partnered with Biocon Biologics Ltd. to combat the ongoing COVID-19 crisis in southern Asia. The partnership provides Biocon rights to manufacture and commercialize an antibody therapy based on ADG20 in India and additional select emerging markets based on the commercial manufacturing process developed for ADG20. As part of the agreement, Biocon will be granted access to data from Adagio’s Phase 2/3 clinical trials as well as its anticipated Emergency Use Authorization package and other regulatory submissions to support approval or emergency authorization in India and other select emerging markets.

Recent Business Highlights

  • David Hering, Global COVID-19 Vaccine Expert, Appointed as Chief Operating Officer: Adagio recently appointed David Hering as the company’s chief operating officer. Mr. Hering joins Adagio from Pfizer, where he most recently served as the global mRNA business lead, a business specifically created to manage global COVID-19 efforts as well as future vaccines utilizing mRNA technology, and led the launch of the first-ever COVID-19 vaccine in the United States. Prior to his most recent role at Pfizer, Mr. Hering was president, North America at Pfizer, where he led a 700-person organization across a portfolio of vaccine products for COVID-19 and meningococcal and pneumococcal diseases.
  • $355.8 Million Initial Public Offering (IPO) Successfully Completed: In August 2021, Adagio sold 20,930,000 shares of common stock, including the full exercise of the underwriters’ option to purchase an additional 2,730,000 shares of common stock at a public offering price of $17.00 per share. The gross proceeds of the offering, before underwriting discounts and commissions and other offering expenses payable by Adagio, were approximately $355.8 million.
  • Collaboration with Scripps: Adagio entered into an exclusive research agreement with The Scripps Research Institute to identify broadly protective vaccine candidates for the prevention of influenza and beta coronaviruses.
  • Board of Directors Expanded with Industry Leaders to Support Future Growth: Adagio recently announced appointments of three industry veterans and area experts to its board of directors:
    • Tom Heyman, former president of the Johnson & Johnson Development Corporation (JJDC);
    • Anand Shah, M.D., former deputy commissioner for medical and scientific affairs at the U.S. Food and Drug Administration (FDA); and
    • Michael S. Wyzga, president of MSW Consulting, Inc. and former CFO of Genzyme

Second Quarter 2021 Financial Results

  • As of June 30, 2021, Adagio had cash, cash equivalents and marketable securities of $392.5 million, which includes net proceeds from its Series C financing completed in April. Pro forma cash, cash equivalents and marketable securities as of June 30, 2021 is $719.6 million after giving effect to our initial public offering which closed on August 10, 2021.
  • Research & development expenses including in-process research and development for the second quarter of 2021 were $37.6 million.
  • Selling, general & administrative expenses for the second quarter of 2021 were $7.1 million.
  • Net Loss for the second quarter was $44.7 million, or $0.18 per share.

About ADG20
ADG20, a monoclonal antibody targeting the spike protein of SARS-CoV-2 and related coronaviruses, is being developed for the prevention and treatment of COVID-19, the disease caused by SARS-CoV-2. ADG20 was designed and engineered to possess high potency and broad neutralization against SARS-CoV-2 and additional clade 1 sarbecoviruses, by targeting a highly conserved epitope in the receptor binding domain. ADG20 displays potent neutralizing activity against the original SARS-CoV-2 strain as well as all known variants of concern. ADG20 has the potential to impact viral replication and subsequent disease through multiple mechanisms of action, including direct blocking of viral entry into the host cell (neutralization) and elimination of infected host cells through Fc-mediated innate immune effector activity. ADG20 is administered by a single intramuscular injection, and was engineered to have a long half-life, with a goal of providing both rapid and durable protection. Adagio is advancing ADG20 through multiple clinical trials on a global basis.

About Adagio Therapeutics

Adagio (Nasdaq: ADGI) is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of antibody-based solutions for infectious diseases with pandemic potential. The company’s portfolio of antibodies has been optimized using Adimab’s industry-leading antibody engineering capabilities and is designed to provide patients and clinicians with a powerful combination of potency, breadth, durable protection (via half-life extension), manufacturability and affordability. Adagio’s portfolio of SARS-CoV-2 antibodies includes multiple, non-competing broadly neutralizing antibodies with distinct binding epitopes, led by ADG20. Adagio has secured manufacturing capacity for the production of ADG20 with third-party contract manufacturers through the completion of clinical trials and, if approved by regulatory authorities, through initial commercial launch. For more information, please visit www.adagiotx.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “projects,” and “future” or similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning, among other things, the timing, progress and results of our preclinical studies and clinical trials of ADG20, including the timing of our planned IND submissions, initiation and completion of studies or trials and related preparatory work, the period during which the results of the trials will become available and our research and development programs; our ability to obtain and maintain regulatory approvals for, our product candidates; our ability to identify patients with the diseases treated by our product candidates and to enroll these patients in our clinical trials; our manufacturing capabilities and strategy; and our ability to successfully commercialize our product candidates. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements, including, without limitation, those risks described under the heading “Risk Factors” in Adagio’s prospectus filed with the Securities and Exchange Commission (“SEC”) on August 6, 2021 and in Adagio’s future reports to be filed with the SEC, including Adagio’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021. Such risks may be amplified by the impacts of the COVID-19 pandemic. Forward-looking statements contained in this press release are made as of this date, and Adagio undertakes no duty to update such information except as required under applicable law.

Contacts:

Media Contact:
Dan Budwick, 1AB
[email protected]

Investor Contact:
Monique Allaire, THRUST Strategic Communications
[email protected]

ADAGIO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except share and per share amounts)

June 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents(1) $ 392,509 $ 114,988
Prepaid expenses and other current assets 3,550 2,394
Total current assets 396,059 117,382
Deferred offering costs 1,933
Total assets $ 397,992 $ 117,382
Liabilities, Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities:
Accounts payable $ 10,716 $ 8,153
Accrued expenses 27,181 4,919
Total current liabilities 37,897 13,072
Early-exercise liability 8 11
Total liabilities 37,905 13,083
Commitments and contingencies
Convertible preferred stock (Series A, B and C) $0.0001 par value; 16,944,484 shares authorized, issued and outstanding at June 30, 2021; 12,647,934 shares authorized, issued and outstanding at December 31, 2020; aggregate liquidation preference of $505,399 and $169,900 at June 30, 2021 and December 31, 2020, respectively 504,711 169,548
Stockholders’ deficit:
Common stock, $0.0001 par value; 150,000,000 shares authorized at June 30, 2021 and December 31, 2020; 5,599,240 shares issued and outstanding at June 30, 2021; 28,193,240 shares issued and 5,593,240 shares outstanding at December 31, 2020 1 1
Treasury stock, at cost; 0 shares and 22,600,000 shares at June 30, 2021 and December 31, 2020, respectively (85 )
Additional paid-in capital 4,067 154
Accumulated deficit (148,692 ) (65,319 )
Total stockholders’ deficit (144,624 ) (65,249 )
Total liabilities, convertible preferred stock and stockholders’ deficit $ 397,992 $ 117,382

(1)     Pro forma cash, cash equivalents and marketable securities as of June 30, 2021 is $719.6 million after giving effect to our issuance and sale of 20,930,000 shares of our common stock in our initial public offering at the price of $17.00 per share after deducting underwriting discounts, commissions and estimated offering costs which closed on August 10, 2021.

ADAGIO THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

(In thousands, except share and per share amounts)

Three Months
Ended
June 30,
Six Months
Ended
June 30,
Period from
June 3, 2020
(Inception) to
June 30,
2021 2021 2020 (3)
Operating expenses:
Research and development(1) $ 35,067 $ 69,204 $ 48
Acquired in-process research and development(2) 2,500 3,500
Selling, general and administrative 7,124 10,695 50
Total operating expenses 44,691 83,399 98
Loss from operations (44,691 ) (83,399 ) (98 )
Other income (expense):
Interest income 23 32
Other expense (5 ) (6 )
Total other income (expense), net 18 26
Net loss and comprehensive loss $ (44,673 ) $ (83,373 ) $ (98 )
Net loss per share attributable to common stockholders, basic and
diluted
$ (0.18 ) $ (0.66 ) $
Weighted-average common shares outstanding, basic and diluted 249,769 125,574 21,250,000

(1)   Includes related-party amounts of $247 for the three months ended June 30, 2021, $435 for the six months ended June 30, 2021 and $0 for the period from June 3, 2020 (inception) to June 30, 2020.
(2)   Includes related-party amounts of $2,500 for the three months ended June 30, 2021, $3,500 for the six months ended June 30, 2021 and $0 for the period from June 3, 2020 (inception) to June 30, 2020.
(3)   The results for the period from June 3, 2020 (inception) to June 30, 2020 are the same for the three and six months ended June 30, 2020.

Protection of whistleblowers key to fighting corruption

Special Investigating Unit (SIU) head, Advocate Andy Mothibi, says whistleblowers remain an important aspect to combatting corruption.

He was speaking during the first webinar in a five-part series, which will explore the importance of whistleblowing and the challenges that whistleblowers experience.

“More often, corruption goes undetected until a whistleblower comes out. To bring any successful litigation and prosecution, you need credible evidence, and evidence doesn’t just flow from nowhere.

“It’s given by people, and those people have to be assured that the framework of the witness protection and whistleblower protection functions, such that they are protected,” he said.

Mothibi explained that in the case of Personal Protective Equipment corruption cases, for example, the SIU has ensured that those coming forward with information are not put in any danger.

“We’ve got an independent company that’s running our whistleblower hotline. We do that to ensure that there’s confidentiality [and] it is also to ensure that there is anonymity. Almost 90% to 95% of our PPE investigations are procurement based and that’s simply because that’s where all the money is.

“More often, it is officials who become aware of this corruption and maladministration around procurement processes, and we have seen that officials do come out in many instances. Then it becomes very important that the… Protected Disclosures Act really kicks [in], so that those officials are protected.”

Mothibi said the death of Gauteng Health Department Chief Director of Financial Accounting, Babita Deokaran, spurred the unit to raise awareness on the legal options that whistleblowers have in order to receive protection.

Deokaran was killed in an alleged hit after she exposed potential corruption within the department.

“It is so important for would-be witnesses and would-be whistleblowers to understand… the legal framework [to protect them]. But we as law enforcement agencies… are really geared up to ensuring that when matters and cases are reported to us, we put in place measures that will make sure that the whistleblowers and witnesses are protected,” Mothibi said.

The legal framework includes the Protected Disclosures Act – also known as the Whistleblowing Act – which protects workers from civil or legal liability after they have disclosed information to law enforcement about unlawful acts committed by their employer.

Witnesses also have protection through the Witness Protection Act.

Mothibi acknowledged that both of these Acts needed to be broadened to include those who witness corrupt acts while not necessarily working for government.

The SIU will hold the second whistleblowers webinar on October 3, which will unpack whistleblower legal frameworks and regulations.

Source: South African Government News Agency

Entrepreneur turns passion for pedicures into successful business

With no education in cosmetology, somatology or cosmetic formulations, Shantelle Booysen used her love for pedicures to formulate products that are now being exported to 34 destinations and on top of that, this inspiring entrepreneur directly employs about 2 500 people in the country.

Her multimillion-rand company was one of the first South African companies to successfully register its skin care range with the United States of America Food and Drug Administration Agency, the Ministry of Health in India and the European Union (EU).

Using active ingredients in the Elim Spa Products for hands, feet and body, Booysen has designed and formulated innovative systems that guarantee results.

“I developed a new system for pedicures. At the time and still today we have been copied nine times in South Africa, which is a good thing because when people copy you it means you are doing something right. When people pick up my product, I want them to know the product works and can be trusted,” says the founder and CEO of Elim Spa Products, in an interview with SAnews.

Elim Spa Products was established in 2004 when Booysen wanted to solve a problem she experienced after getting a pedicure.

“I loved a pedicure; the thing that irritated me was my feet were slippery in my shoes afterwards. I didn’t like that so I went to a cosmetic formulator and I asked them to create a heel cream that would stop my feet from being slippery,” she says.

Working with the cosmetic formulator, they produced a heel cream that guaranteed no slip after a pedicure, had a pleasant scent and softened the heels.

Seeing the amazing results from using the product, the entrepreneur sold it to a company, which at the time had 27 spas in the country. It did not take long for the company to introduce the product to its branches on the continent.

In the early days of her business, Booysen was assisted by the Small Enterprise Development Agency (SEDA) with the development of her website and marketing material. She also received financial training.

Later on through the agency’s Technology Transfer Fund, the business was able to purchase a sophisticated machine that could package individual sachets of the products.

Finding its footing

In addition, SEDA assisted the company with access and the support to export freely to Europe particularly Germany, as well as Greece, Spain and Holland.

The regulatory process that the Western Cape based company underwent in order to export to Europe was a costly exercise, as the company was required to change its formula to adjust to EU regulations, appoint a responsible person to act as a representative for the company and pay for toxicology tests.

“For instance, they did label reviews and if there was an ingredient in one of the products they didn’t ‘approve, you had to change your formula and dump 10 000 boxes [and] reprint those boxes with the correct ingredients on them.

“SEDA came in with a massive financial investment. It is extremely expensive export to Europe. There was no way I could afford to do that in the beginning without their assistance,” Booysen says.

With the many obstacles that entrepreneurs face when establishing a business, government has committed to support small, medium and micro enterprises (SMMEs) and cooperatives through funding initiatives, business development and support services.

Government continues to demonstrate its support to SMMEs and cooperatives through entities such as SEDA, Industrial Development Corporation, Small Enterprise Finance Agency (SEFA), National Empowerment Fund (NEF) as well as Finfind.

This forms part of government’s effort to create jobs and an inclusive economy in a country that has a challenge with unemployment.

When starting her business, Booysen was a former journalist, employed by the International Colleges Group doing curriculation and course development.

During the first three years of the business, she worked part-time on the business with the assistance of her family and friends.

“When I started my business, I started small; I packed my own boxes; I did my own deliveries and I saw the clients myself. It was a challenge in the beginning. My husband had to sell his car twice; we took out a loan and had to scale down on our cost of living to make this business work,” she recalls.

Booysen credits the growth of her business to word of mouth and staying connected with her clients.

She also believes that there is a solution for every problem. This mentality has helped her to save her company during the most uncertain times in the history of the business.

When the world was hit by the COVID-19 pandemic last year, South Africa went into a nationwide lockdown on 26 March in an effort to curb the spread of the virus and save lives.

At the time, salons had to close their doors and sectors that were identified as essential services were the only ones allowed to operate.

Staying afloat

To make up for the money the business was losing while salons were closed, Booysen focused on earning foreign currency to pay service providers, ensure the company’s supply chain and salaries.

“Everyone came together because they wanted to have a job after the pandemic. We have an overcomer mentality in the organization and we always make a plan. My team worked from home and we sold to countries that were open,” Booysen says.

As an incentive, the company has a profit sharing scheme and the employees work on a 10% growth bonus.

Prior to the pandemic, Booysen had taken up a role as a public speaker where she talks about her journey.

Her accolades include being awarded the Western Cape Entrepreneur of the month award in 2015. In the same year, she also won the National Gazelle Award, which is an award for the 40 most promising, high-potential entrepreneurs in South Africa.

Elim Spa products is also part of the National Gazelles programme, receiving constant mentoring and interventions from SEDA.

Source: South African Government News Agency

Request for Information process underway for Public Works programme

Public Works and Infrastructure Minister, Patricia de Lille, has announced the opening of the Request for Information (RFI) process for the Photovoltaic and Water Savings on Government Buildings Programme.

The programme aims to save government billions of Rands in water and electricity consumption costs through the procurement and use of renewable energy and resource efficient measures for public buildings.

“This programme will be largest… for the procurement of renewable energy and resource efficiency for public facilities.

“The RFI is aimed at testing the market for additional ideas and information which comprehensively looks at ways to deliver mutual values to through strong partnerships between government and the private sector,” she said.

The request for information process will also allow the department to obtain a high-level understanding of optimal technical solutions that are available in the market in relation to the capacity of private sector to deliver such solutions.

Minister de Lille said with this programme, government aims to be a “champion for innovation and new technologies” while expanding government’s energy use mix.

The programme is part of government’s infrastructure investment plan and is expected to involve national, provincial and local government buildings across the country for the next 30 years.

The Minister said the first phase of the programme has received approval from the National Treasury with the private sector responsible for “both the technical and financial aspects of implementing the programme”.

“To help spur on South Africa’s private sector investment, government is also currently engaging with a number of local and international partners on various funding mechanisms that will be identified as potentially catalytic,” she said.

According to the Minister, the projected benefits of the outcome will be:

Savings and revenue worth over R401 billion by 2050

Over R253 billion direct contribution to the GDP

3 800 new small businesses will be developed, the majority being black-owned

Skills development opportunities for more than 117 000 people

An estimated 146 000 jobs created

A reduction in energy use of between 22% and 45%

A water use reduction of between 30% and 55%

A reduction in waste and diversion of 50% of current waste from landfill sites, saving 12m tons

A reduction in carbon and other greenhouse gas emissions by over 54.5 megatons

“We are very excited about the possibilities presented by [the request for information] phase in our quest to scale up innovation in government. The programme is also an example of putting the Infrastructure Investment Plan in action and contributes to our goals of achieving the reconstruction and recovery plan to the revival of our own economy,” she said.

Source: South African Government News Agency

Technical Assistance Unit an essential part in anti-corruption machinery

The Technical Assistance Unit is an integral cog in the anti-corruption machinery of government and an important instrument to address corruption, fraud and unethical conduct in the Public Administration.

These were the remarks of Public Service and Administration Minister Ayanda Dlodlo at the launch of the Public Administration Ethics Integrity and Disciplinary Technical Assistance Unit (PA-EID-TAU) on Monday.

The unit is aimed at addressing issues related to ethical conduct and corruption in the public service.

Addressing the launch, Dlodlo said that government is committed to eradicate corruption and has put several programmes in place for this purpose, directed by the National Development Plan.

“This plan envisages a South Africa with reduced levels of corruption by 2030, to be achieved through the National Anti-Corruption Strategy that serves as South Africa’s blue print to tackle corruption,” Dlodlo said.

Dlodlo said that in discussions with the Steering Committee of the National Anti-Corruption Strategy, she has encouraged the team to interrogate the real cost of corruption to the State and our people.

“One of the vehicles identified in the plan to address corruption is a resilient anti-corruption system, which will successfully detect and investigate cases of corruption, with a view to prosecute, convict and incarcerate perpetrators.

“By utilizing this system to coordinate our anti-corruption efforts, significant strides were made, amongst others, to address those public service employees involved in corrupt activities,” Dlodlo said.

The Minister emphasised that the newly established Unit has no criminal jurisdiction or investigative mandate, but as part of the Anti-Corruption Task Team, it collectively contributes to the fight against corruption.

She said that the Unit plays a critical role to follow up with national and provincial departments on criminal cases reported to the Police, and to ensure that the necessary disciplinary steps are taken.

“When the DPSA first started to monitor this in 2017, approximately 8 500 employees were listed as suppliers on the Central Supplier Database. As the end of July 2021, this amount stands at 96, and is interrogated to ensure no contracts are concluded with these employees,” Dlodlo said.

Dlodlo added that the South African Police Service, National Prosecuting Authority and DPSA team, whilst working on this issue, identified 17 priority cases for investigation, of which one case is already enrolled to court.

Awareness on whistleblowing

The Minister said that the Unit has a critical role to play in terms of reaching the objectives stated in the National Anti-Corruption Strategy.

“This is to contribute to the building of an ethical leadership, to professionalise the public administration, and to establish a culture of reporting and whistleblowing,” Dlodlo said.

Dlodlo said that any anti-corruption and professionalisation initiative must allow employees to blow the whistle on corruption and for the protection of whistle-blowers.

“The death of Ms Babita Deokaran highlights the imperative to increase awareness amongst employees on whistle-blowing, to bolster early detection of corruption and criminal conduct.

“It is time that we revisit South Africa’s whistle-blowing regime and examine it vigorously, not only the legislation and its effectiveness, but also the lack of a single repository that can be used for research to strengthen the system and practice,” Dlodlo said.

Dlodlo added that: “We also need to interrogate the lack of cooperation across government to protect whistle blowers and we have to identify the bullies abusing their power to stop whistle-blowing from happening”.

In her closing remarks, Dlodlo said that the establishment of the Unit is an important step in addressing corruption and to encourage workplace ethics.

“Section 195 of the Constitution requires the maintenance and promotion of a high level of professional ethics in the Public Administration. This not only speaks to the role of public servants performing their work in an efficient and ethical way, but also for those in leadership positions to act ethically at all times,” Dlodlo said.

Source: South African Government News Agency

Late Deputy Minister to be honoured with official funeral

The late Deputy Minister in The Presidency for Women, Youth and Persons with Disabilities, Professor Hlengiwe Mkhize, will be laid to rest on Saturday at her home in Johannesburg, Gauteng.

The Presidency said on Monday that she will be honoured with an official Funeral Category 2.

Mkhize passed away on Thursday, 16 September 2021, at the age of 69.

“The State, Official and Provincial Official Funeral Policy accords Official Funerals Category 2 to serving Deputy Ministers. The National Flag will be flown at half-mast at every flag station in the country from tomorrow morning, 21 September 2021, until the evening of the day of the funeral on 25 September 2021,” the Presidency said.

Mkhize served as Ambassador to the Netherlands, Deputy Minister of Correctional Services, Economic Development and Telecommunications and Postal Services. She has also served as Ministers of Home Affairs and Higher Education and Training before her appointment to The Presidency.

Mkhize also played a crucial role in conflict resolution during the country’s transition to democracy.

Source: South African Government News Agency