By Craig McKune and Sandi Kwon Hoo
A key former Northern Cape official implicated in the buying of R112.2 million in equipment from city businessman Gaston Savoi has gone to ground following a Cape Times exposé of his involvement in the deals – which are under investigation by the Hawks.
Now it has emerged that former Kimberley Hospital chief executive Hamid Shabbir started a business with Northern Cape finance, economic development and tourism MEC John Block, who is also a partner in Savoi’s company Intaka Northern Cape.
Shabbir left South Africa soon after being questioned by the Hawks last year and for two weeks has failed to answer Cape Times questions forwarded to him.
In 2005 and 2006 Intaka sold water purifiers, medical oxygen generators and dialysis machines worth at least R112.2m to the Northern Cape Health Department.
Intaka then paid at least R13.8m in “commissions” on the sales to individuals and companies that have been linked, by PricewaterhouseCoopers investigator Trevor White and a Cape Times investigation, to Health Department officials including Shabbir.
Last week the Cape Times revealed that at least four of the 10 water purifiers bought by the Northern Cape Health Department were empty and in a state of disrepair.
In August, the Hawks arrested Uruguayan Savoi, several businessmen and KwaZulu-Natal officials who were involved in similar deals in KZN.
Block, who is also ANC Northern Cape chairman, is the sole director of Chisane Investments, a company paid “commissions” by his other company Intaka Northern Cape. He was not employed in government at the time.
Shabbir has been linked to a company called Watertech, which was also paid several million in “commissions” by Intaka while he was employed by the Health Department.
Cipro searches have revealed that in 2004, six months before Block and Savoi started Intaka Northern Cape, Shabbir and Block became directors of Bormms International Holdings. The Cape Times contacted Chineme Ogu, listed as an active director of Bormms, who confirmed that Block and Shabbir were business partners in the company.
Ogu said the business was registered as an internet service provider in Uganda, but its licence had been revoked by the Uganda Communications Commission.
“This was among other (business ventures) that didn’t work out.”
He said he knew nothing about the Intaka purchases “except what I read in the papers”.
Recently Block claimed in a Northern Cape newspaper that he was innocent, admitting he was an “employee” of Intaka – though he remains a director – but saying that he had no influence over the tender process.
Meanwhile, Glen Chase, of the Northern Cape Civics Association, said they were concerned that Block was being treated lightly by the police because he was politically connected.
“In all provinces investigations are being finalised and arrests have been made, but in the Northern Cape it seems some individuals who are politically connected are above the law. We would urge the Hawks to come clean …”
Block did not respond to detailed questions, but denied any wrongdoing.
His spokesman Lesego Letebele said in a statement that because Block was under investigation, “it would be highly unfair if not improper for the MEC to be required to be subjected to a parallel investigation, if any”.
Hawks spokesman Musa Zondi said only that investigations were continuing. - Cape Times