Gauteng Health rejects DA's Madyo 'Golden Handshake’ allegation
The Democratic Alliance has alleged that the Gauteng Department of Health paid off an official who was under investigation over fraudulent contracts linked to Tembisa Hospital.
During a media briefing on Wednesday, DA Shadow MEC for Health in Gauteng, Jack Bloom, claimed that Health MEC Nomantu Nkomo-Ralehoko misled the public about the departure of Chief Financial Officer Lerato Madyo, stating that she had resigned when, according to him, she had actually received a lucrative settlement package.
He added that instead of being dismissed without benefits, Madyo effectively left with what he called a “golden handshake.”
Madyo has been accused of failing to act on warnings from slain whistleblower Babita Deokaran, the former chief director of financial accounting, who flagged more than R850 million in suspicious payments at the hospital before her assassination in 2021.
Bloom said Nkomo-Ralehoko responded to questions he had sent to her, confirming that Madyo left the department on 31 July 2024 after “the parties concluded a settlement agreement, the material terms of which are subject to a confidentiality clause mutually agreed upon and signed by both parties.”
He added that the settlement had been authorised by the department’s Accounting Officer and that the Premier’s Office had been informed.
"And we, as the DA, feel this is outrageous. The department has lied, and they've covered up a hush money payoff to the person who disregarded Babita's appeal to investigate suspicious Tembisa Hospital contracts worth R850 million," he said.
According to Bloom, Madyo received R3 million while on suspension with full pay for two years as the department prolonged her disciplinary inquiry on 13 misconduct charges.
Instead of concluding the process, which he said could have implicated others and potentially led to criminal charges, she left the department with her pension and an undisclosed settlement amount.
" She probably walked off with about R2 million on top of her pension, but we'll have to get the actual agreement to find out what she was paid. Now, we think she is surely a chief suspect amongst a small number of people who could have tipped off the mastermind behind Babita's murder, because who actually knew that Babita was the whistleblower?"
Bloom said both the Premier and the Health MEC must explain why they approved what he described as a disgraceful settlement agreement and why the department claimed that Madyo had resigned.
In response to Bloom’s claims, the Gauteng Department of Health said Madyo had been placed on precautionary suspension while investigations were underway, noting that labour laws and public service regulations require that employees on such suspension continue to receive their salaries until disciplinary processes are concluded.
The department added that the termination agreement was reached in line with labour relations frameworks and should not be viewed as a “golden handshake.”
It also noted that the 2022 and 2025 interim reports by the Special Investigating Unit into Tembisa Hospital contracts did not recommend Madyo for disciplinary or criminal action.
The department said it has cooperated with all investigations related to Tembisa Hospital and remains committed to transparency and accountability.
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