File image: IOL.

CAPE TOWN - Gupta-linked healthcare organisation, Mediosa has failed to pay more than 100 employees, citing a “financial crunch’, reports City Press. 

The Midrand-based company which according to the department of health in the North West, allegedly received a R30 million payment in May last year before doing any work. 

The company now claims that their finances have dried up, citing “financial crunch” as a reason for failing to pay employees salaries on time. 

Mediosa employees in both the Free State and North West have confirmed that contracted workers have not received salaries.

City Press says that it has seen a letter allegedly signed by Mediosa co-owner, Sundeep Kalsi, who has supplicated to employees to have patience while Mediosa attempts to sort out the payments. 

In the letter, Kalsi reportedly said that the provincial government owes the company for services which dates back to November 2018. 

He reportedly adds that they have received verification that the payment will be made in April 2018. 

Mediosa has also criticised the media for its financial distress. 

The company reportedly said that due to the media outburst, they were unable to secure a loan locally. They said they have since transferred money from India which will only reach SA by March 2018. They anticipate for the salaries to go out the following day, on March 7, 2018. 

Although Mediosa claims that the provincial government owes them for work done since November 2017, City Press says they were unable to immediately verify these claims with the Free State and North West provinces. 

Meanwhile, on February 22 the ANC Youth League (ANCYL) in North West said that national government must institute a forensic investigation into the provincial health department, following reports that the department paid R30 million up front to Mediosa. 

ANCYL spokesperson Tshiamo Tsotetsi said the upper sphere of government must institute and monitor a forensic investigation and not the North West provincial government.

North West premier Supra Mahumapelo on instituted a forensic investigation into the provincial health department and the investigation is set to be headed by the North West director-general and will also probe other procurement related matters.

Then on February 24, Independent Media reported that Supra Mahumapelo has come under fire for his decision to institute a forensic investigation into corruption in his health department instead of allowing the Hawks to investigate.

The SACP in the North West broke ranks with the ANC, its alliance partner, and slammed Mahumapelo for his decision after reports that an alleged Gupta-linked company, Mediosa, was illegally given R180million worth of tenders without following proper tender procedures.

Expressing their outrage, SACP provincial chairperson Smuts Nathe described the awarding of a tender as a “pure crime”, saying “we can't be seen to be politicising crime”.

“The law enforcement agencies must act swiftly to investigate the corruption. They must investigate how the Guptas have used our province as their own fiefdom,” Nathe said.

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- BUSINESS REPORT ONLINE