Johannesburg - The Gauteng Department of Health spends more than R25 million on security alone at Charlotte Maxeke Johannesburg Academic Hospital in a year.
This is R3.6m more than what it spends at Chris Hani Baragwanath Academic Hospital in Soweto, the biggest hospital in the country and the third-largest in the world.
DA spokesman on health Jack Bloom made the disclosure after he had made an application under the Promotion of Access to Information Act.
The Gauteng Health Department had wasted R16.2m and chosen the most expensive security contract for six hospitals, he said.
“This is revealed in documents I have obtained through an application under the Promotion of Access to Information Act. I asked for the prices given by all the competing bidders for all 37 hospitals in Gauteng, but have so far only received for six hospitals.
“The shocking thing is that the most expensive security company was chosen for each of these hospitals,” Bloom said.
The worst case was that of Charlotte Maxeke Johannesburg Academic Hospital, where Mabotwane Security Services had been appointed to do the job, he said.
Mabotwane was chosen over Guard-4-Sure Security Services, despite being R6.2m more expensive for a two-year contract. The department now pays R25.6m annually to guard this hospital instead of paying R22.5m for the cheapest quote.
At Helen Joseph Hospital, Potlako got the contract for R13.3m a year, R1.6m more than Tshireletso’s R11.7m bid.
At Chris Hani Baragwanath Academic Hospital, Mafoko got the contract for R22m a year, R1m more than Guard-4-Sure.
At Tembisa Hospital, Tshireletso won the R6.1m annual tender, R900 000 more than Guard-4-Sure’s R5.2m bid.
At Steve Biko Academic, Born to Protect won the R15.5m annual tender, R800 000 more than R14.7m by Guard-4-Sure.
At George Mukhari Hospital, Vimba won for R12.5m a year, which is R700 000 more than R11.8m by Guard-4-Sure.
“I am puzzled that Guard-4-Sure was the cheapest quote for five out of the six hospitals but was only awarded one contract.
“According to the department, ‘all contracts were awarded to different sites regardless of price’, and the reason given elsewhere for not giving to the cheapest contractor is that the company was ‘awarded another site’.
“This is very poor practice that contravenes Treasury regulations concerning value for money,” Bloom said. It was further evidence that there was possible corruption in awarding these contracts, he added.
Last year, Abbey Marokoane, chief director of risk management and internal control, was suspended for alleged corruption concerning hospital security contracts.
“More than R50m has probably been overspent on the two-year contracts for all 37 hospitals in Gauteng by not choosing the cheapest contract.
“This is money that could have been spent to provide better care in our overstressed hospitals, but was blown on overpriced security contracts,” Bloom said.
He also referred the matter to the provincial office of the auditor-general for further investigation.
Gauteng health spokesman Prince Hamnca said the department had considered a number of factors when appointing the security companies, and price had not been the only factor.
“We needed a company that displayed a track record in security management. We looked at its security plans and strength as well as its history and knowledge of the industry,” he said.
The Star