Johannesburg - Gupta-linked company Mediosa’s controversial mobile clinic contract with the North West health department has been terminated, Health Minister Dr Aaron Motsoaledi said on Thursday.
Motsoaledi also confirmed that an investigation has been launched into the company’s contracts with the Free State and North West health departments.
The minister’s words come days after Mediosa clarified its contract with both departments as well as its alleged links to the Gupta family.
In a statement released by the company, Mediosa claimed its contract with both departments was still in place and denied that illegal tender processes were followed in awarding them.
Instead, the company said, they are still owed a substantial amount of money by both departments and that is why they are now in business rescue.
Motsoaledi in an interview with IOL, said he was informed that the contract had been terminated during his latest visit to the province.
In March, Motsoaledi called on the North West health department to terminate its contract with Mediosa, saying the contract served no health service purpose for residents “except siphoning money from the health department to the Guptas”.
“During my visit to the North West, I asked the [acting] health department HOD what the progress is and he told me that it’s been terminated.
“I asked how he it was terminated and he said that there is a clause stating that if services are not provided - as agreed - you can write to the company and give them seven days to explain themselves or resume their services. If they don’t, the contract is automatically terminated.”
Furthermore, while Motsoaledi maintained that the power to terminate the contract did not lie with him, he said he had written to the finance minister on March 8, asking for an investigation into the contracts.
Treasury would also probe whether the R30 million paid in advance to Mediosa should be recovered as well as the Gupta-linked company's contract with Free State.
Mediosa came under fire after it emerged that North West health had paid R30 million upfront and made a further R180 million payment for the purchase of a single mobile clinic, while other service providers - who had done work for the provincial department - were told they would only be paid after the new financial year.
“It’s the Treasury’s call to determine whether the money was paid unfairly… whether through the provision of an act or court of law, they must determine that legally,” Motsoaledi maintained.