Pretoria - Former Gauteng Health MEC Brian Hlongwa and others arrested after decade-long allegations of tender fraud have been granted bail ranging from R20 000 to R50 000.
The nine individuals, who include former health department officials, appeared in the Johannesburg Magistrate’s Court yesterday.
The charges against the group include fraud, corruption, money laundering and a pattern of racketeering activity perpetuated against the department.
Gauteng Hawks spokesperson Brigadier Nomthandazo Mbambo said the nine suspects, who include former senior department officials, private individuals and entities, were rounded up yesterday morning.
“Eight of the nine handed themselves over at SAPS Johannesburg Central for processing. The ninth is said to be out of the country. The process of applying for his extradition is in progress.”
She said the matter forms part of the second leg of investigation into allegations of gross irregularities in the department between 2006 and 2010.
The matter is in connection with a tender that amounted to R68 million a year, but ballooned to R221 million without any explanation. “The department awarded several contracts to an entity or juristic person, initially meant for a period of two years, at a cost of R68 million (including VAT) per annum. But this amount was allegedly overspent to the tune of R221 million without any consequences to those involved.
“The main contract was the establishment of a Project Management Unit which was first awarded on July 4, 2007, and was extended again on February 17, 2009, for three more years without putting it out on an open tender and at a cost of approximately R273 million per annum.
“The case was referred to the Hawks Serious Corruption Investigation unit by the Special Investigation Unit (SIU) in September 2011 for further criminal investigation.”
Mbambo added that several senior and executive officials of the department allegedly received gratifications from the main service provider and subcontractors in the form of cash, loans, gifts and all-expenses-paid holidays, and local and international trips.
“It is further alleged that none of the officials ever declared such gifts.
“The first leg of investigation was concluded in October 2020, when four senior department officials, Sybil Ngcobo, Mmakgosi Mosupi, Valdis Romaano and Obakeng Mookeletsi were charged for similar offences. They appeared in the Palm Ridge Magistrate’s Court on corruption charges worth R1.2 billion. They will appear again on the January 28, 2022.”
National Hawks head Lieutenant-General Godfrey Lebeya applauded the team for the arrest. “This investigation had challenges of its own, but I’m satisfied our prioritisation has resulted in securing the attendance of the accused who shall also face the charge of pattern of racketeering activity which is, in general, terms organised crime.
“The investigation team and prosecutors are commended for their efforts invested in the matter.”
Pretoria News