File picture: Pexels
File picture: Pexels

Six suspects appear over R10m Northern Cape hospital fraud

By IOL Reporter Time of article published Nov 17, 2020

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Cape Town – The project manager of Robert Mangaliso Sobukwe Hospital in Kimberley is among six people arrested for their alleged involvement in a near R10 million fraud scandal that has rocked the Northern Cape Health Department.

It is alleged that in 2014, the department awarded multi-regional contracts for the renovation of hospitals, SAPS said in a statement. Those contracts were awarded to various business entities whose directors were related.

’’Fraud occurred when the business entities that were related, cover quoted in ensuring that contracts were awarded to them in exclusion of competition.

’’These business entities also failed to disclose their interest and relationship with other related companies when they submitted their bids documents. The project manager is alleged to have assisted these companies by sourcing quotations from them.

’’The department suffered financial prejudice estimated at R9.9 million as a result of their conduct.’’

The six suspects appeared in the Kimberley Magistrate’s Court today.

This is the latest in a string of arrests made by the Hawks in the past two months regarding alleged tender fraud in central South Africa.

In North West, JB Marks Municipality mayor Khotso Khumalo, senior municipal official Cyril Henry and caretaker Mohau Shuping were arrested and charged with eight counts of fraud and theft in October over R5 million that was placed in a trust account intended for the municipality. The trio stands accused of falsifying invoices, making it appear that the unlawful payments were for services rendered.

In the Free State last week, ANC secretary-general Ace Magashule became the eighth person arrested in connection with the controversial R255 million asbestos housing audit tender. They will return to the Bloemfontein Magistrate’s Court in February.


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