A powerful politician, a super-rich Tokai business magnate and his sidekick, current and former provincial health department officials, two engineers and a former scrub-nurse.
These are the 10 people facing charges of corruption, fraud, money laundering and racketeering over the sale of R112.2 million in equipment to the Northern Cape provincial government, which was accompanied by R13.8m in dodgy “commission” payments.
The appearance of nine of them in Kimberley’s Northern Cape High Court yesterday follows an in-depth Cape Times investigation published six weeks ago which detailed how normal tender procedures were circumvented in the purchase of equipment for the Northern Cape Health Department.
The investigation revealed that 10 water purifiers, 30 on-site oxygen plants and 16 dialysis machines were purchased from a company called Intaka; “commissions” were paid to companies linked to officials; and at least four of these purifiers – worth R19.2m – were standing corroded, empty and disused outside the province’s hospitals.
The following people have been charged – or implicated in the case of a former official who could turn State witness:
Gaston Savoi: The Tokai businessman, originally from Uruguay, is the Intaka director at the centre of the multimillion-rand scandal, which involves allegedly corrupt deals in both KwaZulu-Natal and the Northern Cape. A forensic investigation by PwC suggested the water purifier prices were massively inflated, with mark-ups of 500 percent, and the running costs of the oxygen plants cost hospitals more than double the cost of their old system. He was arrested in Cape Town on Wednesday.
John Block: Arrested in Kimberley on Wednesday night, this Northern Cape heavy-hitter is the ANC’s provincial chairman and MEC for Finance, Economic Development and Tourism. Before he was appointed as MEC, he became a co-director of Intaka Northern Cape with Savoi in 2005, selling the equipment to the health department. He is a former business partner of former Kimberley Hospital chief executive Hamid Shabbir, a key figure in the case. He also owns another company paid “commissions” on the Intaka sales.
Sanjay Mitha: Arrested in Limpopo this week, Mitha is the former department director of Supply Chain Management in the Northern Cape Health Department. He allegedly motivated on numerous occasions for deviations on tender procedures favouring Intaka. He told the tender committee Intaka was the only company supplying the oxygen plants in South Africa, which PwC said was false. After leaving the health department in 2007, his company Yadhav Investments signed up to “facilitate expeditious approval, uploading and payment management processes” to help Intaka sell equipment to the department, his former employer.
Hamid Shabbir: Shabbir, who is not in the country and is considering turning State witness, approved some of the Intaka sales to the health department. But he has also been linked by PwC to a company called Watertech which was paid “commissions” by Intaka. Nelmari Oosthuizen, a former Watertech employee, told the Cape Times Shabbir was directly involved in setting up the company, along with his then Kimberley neighbour and hospital colleague Shahzad Maqbool. Cheques were made out to Maqbool by Watertech. Maqbool’s wife was registered as its director, but Oosthuizen said he started the company with Shabbir. Both doctors left South Africa for Abu Dhabi shortly after being contacted by the Hawks late last year. Shabbir is also a former business partner of Block.
Nelmari Oosthuizen: Oosthuizen is a Kimberley-based single mother, a former Kimberley Hospital scrub-nurse and a former personal assistant to Shabbir. After leaving the hospital, she said she was approached by Shabbir and Maqbool to work at Watertech. She sent invoice requests to Intaka for “commissions due” on the sale of equipment to the health department. She cashed various Watertech cheques, which she said was done on Maqbool’s instruction. According to her some of the money was used to pay office expenses, and “large amounts” were given to Maqbool. Maqbool has not been charged.
Daniel Gaborone: Of all the officials implicated in the Northern Cape investigation, Kimberley Hospital Financial Manager Daniel Gaborone is the only one still employed by the Health Department. At the time of the Intaka deals he was chairman of the department’s tender committee and approved a number of the deals. The Cape Times met him for an interview at a Kimberley casino in September, but after the fourth question he left, saying the questions were too serious and he would respond in writing. Thereafter, he did not respond to phone calls, SMSes or e-mails.
Deon Madyo: He was the head of the health department in the Northern Cape when the Intaka equipment was purchased. Documents seized by police suggest he was owed several million in “commission” on these sales, even though he was part of the tender process. He met personally with Block and Savoi before the deals were concluded. He then started a company called Mapquest which entered an agreement to help sell Intaka equipment in Limpopo.
Ron Geddes: According to PwC, this engineer signed a quote on behalf of a company called Westpro Fluid Handling Systems to provide water purifiers to the health department. This appeared to compete with Intaka’s quote, but with a higher price tag. According to PwC, however, Westpro does not supply or manufacture water purifiers and “the quotation… was fraudulent”. Intaka was in possession of these suggesting “collusion”, according to PwC.
Ansano Romani: Like Geddes, engineer Romani signed a competing quote for a company called Forgeweld Stainless to supply water purifiers to the department. This was also “fraudulent” and in Intaka’s possession according to PwC.
Fernando Praderi: Also from Uruguay, but now based in Cape Town, Praderi is an Intaka director and a long-time associate of Savoi.
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