Gauteng Premier Panyaza Lesufi says a Special Investigating Unit (SIU) investigation into Tembisa Hospital has unearthed maladministration, fraud and corruption related to the Supply Chain Management processes at the hospital.
The Premier was speaking at a media conference on Tuesday on various investigative reports in Gauteng departments.
Lesufi said the investigation confirmed the existence of a forensic report drawn up by slain whistle blower, Babita Deokaran, which laid bare the alleged corruption at the health facility.
“We must take this opportunity to state that we are doing this to honour Babita’s legacy. We are doing this to fulfil our commitment that her death will not be in vain. She remains the symbol of whistle blowing and a symbol of fighting corruption. We will leave no stone unturned in ensuring that those involved will suffer the consequences.
“Based on the report we have received on the cases that have been opened, the Hawks [raided] Tembisa Hospital [today] as part of the work we have requested them to do,” he said.
Lesufi said the investigation found that:
- The allegations of maladministration and possible fraud and corruption related to the Supply Chain Management process can be confirmed.
- Fraudulent suppliers and/or service providers are conducting business with the hospital and that possible fraudulent payments were made to those service providers.
- There were numerous irregularities in respect of the bid documents by successful and unsuccessful bidders at the hospital, which should have led to the disqualification of the bidders.
- Service providers were appointed irregularly, which caused the Department of Health and Wellness at the hospital to suffer irregular expenditure.
- The CEO at Tembisa Hospital, at the time of the irregular procurement, was responsible for authorising purchase orders and request forms, which led to the irregular appointment of 13 service providers.
“Based on the findings of a possible syndicate activity, corruption, fraud and the irregular appointment of service providers, which led to irregular expenditure at the Department of Health, the SIU has applied for a Presidential Proclamation. We have supported this initiative. Once approved, the SIU will increase its scope to include the freezing of assets, amongst other things.
“There are close to 227 companies that belonged to four people. The SIU did a brilliant job of scoping, interviewing whistle blowers, and visiting the facilities. Some of the facilities that were visited turned out to be unused buildings,” Lesufi said.
Other investigations
Lesufi said at the AngloGold Ashanti Hospital, the SIU also uncovered irregularities in the awarding of contracts for the refurbishment of the hospital.
“The investigation revealed that the officials misled the Department of Health by indicating that only minor refurbishments needed to be implemented, whereas major refurbishments were affected. These led to an initial budget of about R50million ultimately skyrocketing to about R588 million.
“The report recommended that disciplinary and criminal actions should be considered against three officials from the Gauteng Department of Health and three from the Gauteng Department of Infrastructure Development.
“The disciplinary processes are underway. The SIU has also referred the report to the [National Prosecuting Authority]. We, as the provincial government, have taken a decision to cut our costs and let the investment go,” he said.
At the Department of Transport and Logistics, an investigation into allegations of fraud and maladministration at driving licence testing centres found:
- Fraudulent optometrist certificates.
- Fee dumping – the practice of applicants with arrears, who apply for vehicle licence renewal, being allowed to proceed and what they owe in arrears is dumped to other accounts, including the accounts of deceased persons.
- Collusion between examiners, applicants and driving schools.
- Lifestyle audits found that assets are not commensurate with the salaries of some employees.
“We want to put stricter measures as part of our quest to overhaul the whole licensing regime. We are fighting crime as part of our priority in the province. We have identified motor vehicles as being key in fighting crime through hijackings or robberies being conducted using stolen motor vehicles,” he said.
The Premier said the Gauteng government will “not tolerate any form of corruption and unethical conduct”.
“We are committing ourselves to overhaul our Supply Chain Management systems. We have appointed Finance MEC, Jacob Mamabolo, and the Head of Department to take stock of all SCM officials to enable the detection of any wrong-doing before it occurs,” he said.
