Office of the Premier 2022/12/13 - 22:00
Staff writer
A Special Investigation Unit (SIU) probe has confirmed fraud and corruption activities in the supply chain management process at Tembisa Hospital.
The investigation confirmed that fraudulent suppliers and service providers were conducting business with the hospital, resulting in payments of R850 million.
"The SIU found numerous irregularities in respect of the bid documents provided to Tembisa Hospital by the successful and unsuccessful bidders, which should have led to the disqualification of the bidders.
"The SIU confirms the irregular appointment of service providers, which caused the Gauteng Department of Health to suffer irregular expenditure," Gauteng Premier Panyaza Lesufi announced on Tuesday.
Releasing the report at the Gautrain Management Agency in Midrand, Lesufi said the SIU found that the hospital's CEO at the time, was responsible for authorising purchase order request forms which led to the irregular appointment of thirteen service providers.
Lesufi said these findings are based on the 27 payment documents received and analysed by the SIU.
The provincial government commissioned the SIU to investigate the allegations of maladministration, fraud and corruption related to the supply chain management processes at the hospital.
These were flagged by the late whistleblower Babita Deokaran who was murdered outside her home in Johannesburg in 2021. Six men have been charged with her murder.
The SIU investigations looked into allegations, including the irregular appointment of companies, all payments made from 1 February 2021 to date, and to establish any relationship between the hospital employees and the companies in question.
"We are doing this to honour Babita's legacy, we are doing this to fulfill our commitment that her death will not be in vain. She remains the symbol of whistleblowing and a symbol of fighting corruption. We will leave no stones unturned in ensuring that those involved will suffer the consequences," said Lesufi.
Furthermore, based on the findings of a possible syndicate activity; corruption; fraud and the irregular appointment of service providers, Lesufi said the SIU has applied for the Presidential Proclamation. Once approved, the SIU will increase its scope.
Before Lesufi's briefing, the Hawks members descended on Tembisa Hospital where they conducted a search and seizure operation emanating from the report.
Turning to the AngloGold Ashanti Hospital in Carletonville, where the SIU investigated corruption, malpractice, maladministration, and irregularities in the procurement of goods and services for the refurbishment project.
The mining company AngloGold Ashanti donated the hospital to help treat COVID-19 patients.
The hospital was handed over to the Department of Health in May 2021, but only 147 patients were treated there. The provincial government has invested R460 million in the project.
Lesufi said the investigation revealed that the officials misled the department by indicating that only minor refurbishments needed to be implemented, whereas major refurbishments were affected.
These led to an initial budget of about R50 million, ultimately skyrocketing to approximately R588 million.
Six senior officials from the Departments of Health and Infrastructure Development were charged with failure to follow prescripts in the appointment of professional service providers.
Lesufi said their actions constituted 'financial misconduct' as envisaged in the Public Finance Management Act. The six officials have been on suspension for 116 days.
"We have released the Hawks and the SIU to go and retrieve the money that belongs to the state. All the people responsible for inflating the prices tracked, assets frozen, and money returned to government."
The matters have since been referred to the National Prosecution Authority.
The Gauteng government has indicated that it will accelerate the rollout of lifestyle audits to all public servants, assist in developing effective mechanisms to protect whistleblowers, and prioritise the full implementation of all the recommendations and corrective measures of the final forensic investigation reports.
"We are committing ourselves to overhaul our supply chain management systems. We have appointed Finance MEC Jacob Mamabolo and the Finance Head of Department to take stock of all SCM officials to enable the detection of any wrong-doing before it occurs," explained Lesufi.
Gauteng Provincial Government has collaborated with the Chapter 9 institutions; the SIU, the Auditor General, Public Service Commission (PSC), the Public Protector and the State Security Agency.
Their work is complemented by the civil society advisory panel on ethics, the Gauteng Ethics Advisory Council.
These institutions are implementing the Gauteng City-Region Integrity Management Policy Framework - underpinned by the Gauteng Anti-Corruption Strategy founded on prevention, detection, investigation and resolution.
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