Latest news with #R86-million
Daily Maverick
a day ago
- Health
- Daily Maverick
Former North West health officials in the dock over R86m corruption allegations
A corruption case dating back to 2007 involving R86m for hospital upgrades in the North West Health Department has finally reached court — one of several corruption cases before the court that involve the provincial government. In 2007, the North West Health Department set aside R86-million for service providers to supply medical equipment for two new hospitals in Vryburg and Ledig. The case was finally brought to court earlier this year, and the accused made a brief appearance in the Molopo Magistrates' Court on Friday, 6 June. The case involves seven accused, facing charges of fraud, corruption, and contravention of the Public Finance Management Act (PFMA). The seven are: Lydia Keneliwe Sebego, former head of the North West Department of Health; Dr Andrew Lekalakala, also a former head of department; Vuyo Sipho Wesley Mbulawa, former chief director; Kabelo Elliot Andrew Motene, department director; Ntabeleng Florence Matlapeng, deputy director; Joseph Mojoji Leshaba, director of the company Raliform Investment Holdings; and Roulgh Lotwane Mabe, director of the company MR Property. Sebego faces two counts of contravention of PFMA and one of corruption. Dr Lekalakala faces three counts of contravention of PFMA and one corruption charge. Mbulawa is charged with six counts of fraud, while Mabe faces seven counts of fraud. Motene faces four counts of fraud, while Matlapeng faces one count of fraud. They were arrested by the Directorate for Priority Crime Investigation (Hawks) at Mahikeng on 26 March 2025, and released the same day on R2,000 bail each. Appearing in court on Friday, the case was postponed to 25 August 2025 to allow counsel to consult with their clients and prepare for arguments. According to Sivenathi Gunya, the North West National Prosecuting Authority spokesperson, it is alleged that in 2007, Sebego, as head of department, signed service-level agreements with two companies run by Mabe and Leshaba. These contracts, Gunya added, were for the supply and maintenance of medical equipment for the new hospitals. 'However, investigations revealed that the service providers only partially fulfilled their contractual obligations. Although some equipment was reportedly purchased and some maintenance carried out, the companies allegedly submitted fraudulent invoices for undelivered equipment and services that were never rendered. These invoices were paid by the department,' he said. As a result, the state contends that senior officials from the department acted in common purpose to approve these payments, despite the services not being fully delivered, resulting in a financial loss of more than R86-million. It is also alleged that the department's supply chain policies and bidding processes were disregarded during the appointment of the service providers. Corruption plagues North West This is not the first time that funds meant to boost community services have allegedly been misappropriated in the North West Health Department. Dr Lekalakala, one of the seven accused in the R86-million fraud and corruption case, is also charged in a Gupta-linked fraud case, where it is alleged that Lekalakala approved payments of R30-million to Mediosa before it rendered any services. Daily Maverick reported in May 2022 on the disastrous repercussions of the saga throughout the province, with rural residents bearing the brunt – including waiting for up to eight hours for an ambulance, drug shortages, high travel costs and walking vast distances to clinics. The second hospital-related fraud and corruption investigation involves the R470-million project for the Brits District Hospital. Obakeng Eden Mongale, the former head of the North West public works department and current head of the province's health department, appeared in the Mahikeng Magistrates' Court on Thursday, 2 November 2023, in connection with the alleged irregular awarding of a tender worth R470-million to build Brits Hospital in 2008. He was released on R50,000 bail and ordered to surrender his passport and not to interfere with State witnesses. He is charged with contravening the Public Finance Management Act (PFMA). It is alleged that in 2008, he awarded a R470-million tender to Ilima Projects and Tsoga Developers to build Brits Hospital. Lieutenant-Colonel Tinyiko Mathebula, North West Hawks spokesperson, confirmed to Daily Maverick on Tuesday that both cases are before court. A third matter before court is that the Zondo commission found that an SA Express contract involving R400-million was riddled with procurement irregularities, and money was paid for services not rendered. Also, in November 2024, Thabang Mahlakoleng, former head of the North West Department of Community Safety and Transport Management, was sentenced to two years in prison or a fine of R200,000 for his role in the alleged R400-million tender fraud involving SA Express. This trial has been scheduled for 21-25 July. Hospital projects thwarted The Hawks' probe into the R86-million fraud and corruption case reveals that in 2007, the North West Department of Health initiated a project to build hospitals in Vryburg and Ledig. Sebego, the then Head of Department (HoD), allegedly appointed and signed service-level agreements with two service providers: MR Property and Raliform Investment Holdings. The service providers were appointed to furnish medical equipment to the two hospitals. However the Hawks probe revealed that Sebego allegedly flouted procurement prescripts when entering into service-level agreements with the service providers. The project was rejuvenated in August 2015 and November 2016. The department entered into a new contract with the service providers for the maintenance of medical equipment. According to the Hawks spokesperson Mathebula, Dr Lekalakala, as the new HoD, reportedly signed the service-level agreements. 'Dr Lekalakala and Sebego allegedly received gratification when the department entered into a contract with the service providers. It is alleged that the service providers claimed for services that were never rendered,' he said. The investigation, Mathebula said, also found that Vuyo Mbulawa acknowledged receipt of the ordered equipment when there had been no delivery. 'It was further revealed that Motene and Matlapeng authorised payments to service providers for services that were never rendered. These included logistical costs and exchange rate costs. As a result, the department has reportedly suffered a loss of over R86-million,' he said. The acting North West Hawks head, Brigadier Silas Munzhedzi, and the Director of Public Prosecutions in North West, Dr Rachel Makhari, have welcomed the arrest and subsequent court appearance.
eNCA
25-04-2025
- Business
- eNCA
KZN premier hikes AmaZulu Royal House budget to R86 million
PIETERMARITZBURG - The KwaZulu-Natal government has hiked the budget for the trust that takes care of the needs of Zulu King Misuzulu kaZwelithini. The Premier, Thami Ntuli, announced the allocation of R86-million for the new financial year, an increase from last year's R77,5-million. However, concerns over the Royal Household Trust's spending and long-term financial sustainability continue to mount. Ntuli says the increase is not in conflict with the province's cost-cutting, but is to support King Misuzulu in fulfilling his cultural duties. He says the province is looking to appoint a new board for the Trust that will explore property development and commercial farming to reduce reliance on government funds. By: eNCA's Zanele Buthelezi
