Companies linked to R1bn hospital fraud, corruption not blacklisted

Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko. Picture: File

Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko. Picture: File

Published Mar 23, 2023

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Pretoria - The Gauteng MEC for Health and Wellness, Nomantu Nkomo-Ralehoko, has confirmed that none of the companies that allegedly benefited from the R1 billion tender irregularly awarded at Tembisa Hospital were blacklisted by her department.

Nkomo-Ralehoko was replying to written questions submitted by DA health spokesperson Jack Bloom in the Gauteng provincial legislature.

Bloom had asked the MEC to give details of the number of companies that were blacklisted after they were found to have benefited from the R1 billion tenders irregularly issued by Tembisa Hospital.

These questions emerged after Nkomo-Ralehoko and her predecessor, Nomathemba Mokgethi, had admitted in the legislature that one of the beneficiaries of irregular tenders was the ANC’s Ekurhuleni treasurer, Sello Sekhokho.

In their responses, the political bosses said Sekhokho had scored R14.5 million in 55 contracts from Tembisa Hospital in the past three years.

Sekhokho was selling cleaning material, protective clothing, medical consumables, office supplies and groceries and his three companies – Kaizen Projects, Nokokhokho Medical Supplies and Bollanoto Security – got R2.8m in contracts in 2019, R4.2m in 2020, and a whopping R7.5m last year.

These details were made public after the brutal murder of whistle-blower Babita Deokaran who had flagged R850m worth of contracts at the hospital as “possibly fraudulent”.

Several other companies were also linked to alleged fraudulent deals at Tembisa Hospital, which prompted Bloom’s questions to Nkomo-Ralehoko earlier this month, about any action to blacklist companies linked to fraudulent activities at the hospital.

In her reply, Nkomo-Ralehoko said: “None of the implicated companies are recorded on the Restricted Supplier and Tender Defaulters report.”

She added: “The department cannot record companies on the list, but report the companies for blacklisting through the relevant Treasury.

“A Treasury requirement is that any confirmed cases are reported to avoid litigation. The department awaits final counsel and SIU (Special Investigating Unit) reports before reporting the companies,” she said.

Nkomo-Ralehoko said communication was supposed to be sent through the office of the head of department to the relevant Treasury for review and recording on the National Treasury list.

In his reply, an outraged Bloom said there were 93 companies currently listed on the Restricted Supplier and Tender Defaulters report list, but not a single one had been put there by the Gauteng Health Department.

“This means that these companies can still get tenders from Gauteng hospitals. In stark contrast, 18 companies were put on the report by the Western Cape Health Department for fraud, corruption, conflict of interest or misrepresentation of information.”

Bloom said the DA-led Midvaal and Modimolle-Mookgophong local authorities had put five companies on this list, saying there were even three companies placed there by the Limpopo Department of Agriculture and Rural Development.

“I am astounded that the Gauteng Health Department has not put a single company on this list despite the many scandals of companies that were irregularly appointed and involved in proven criminality over years.

“This is why these companies continue to get overpriced contracts they do not fulfil in many instances.

“It’s more evidence that fighting corruption has never been a priority in this department, which is plagued by criminal syndicates that receive political protection,” he said.

Bloom said his party would continue to press for real accountability and consequences for those who steal money needed desperately to improve health services.

Pretoria News