Former health officials arrested for R221 million tender fraud

Eight of the nine suspects handed themselves over to SAPS Johannesburg Central.

Hawks spokesperson, Nomthandazo Mbambo says the ninth suspect is out of the country and the process of applying for his extradition has been started.

The arrests form part of the second leg of an investigation into allegations of gross irregularities committed at the health department between 2006 and 2010.

Mbambo says the case was referred to the Hawks by the Special Investigation Unit (SIU) in 2011 for further criminal investigation.

“The department awarded several contracts to an entity or juristic person which was initially meant for a period of two years, at a cost of R68 million (incl. VAT) per annum. However, this amount was allegedly overspent to the tune of R221 million without any consequences to the individuals involved,” says Mbambo.

“The main contract was the establishment of a Project Management Unit (PMU), which was first awarded on the 4 July 2007 and was extended again on the 17 February 2009 for another three years without putting it out on an open tender and at a cost of approximately R273 million per annum.”

It is alleged that several senior and executive officials of the department received gratifications from the main service provider and subcontractors in the form of cash, loans, gifts and all-expense-paid holiday.

“It is further alleged that none of the Gauteng Health Department officials ever declared such gifts,” says Mbambo.

“The first leg of the investigation was concluded in October 2020, when four senior officials from the Gauteng Health Department - Sybil NNgcobo, Mmakgosi Mosupi, Valdis Romaano, and Obakeng Mookeletsi - were charged for similar offences and appeared at the Palm Ridge Magistrates Court for corruption charges worth R1.2 billion tender. They will appear again on 28 January 2022.”

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