Johannesburg - The Special Investigating Unit (SIU) looks set to probe multimillion-rand contracts awarded to top Ekurhuleni ANC official Sello Sekhokho by the Tembisa Hospital.
President Cyril Ramaphosa signed the proclamation last month after the probe was gazetted. This will allow the SIU to investigate tenders awarded to Hangwani Morgan Maumela, the president’s nephew from a previous marriage.
Sekhokho and Maumela were reportedly recipients of massive tenders amounting to millions but the SIU found that no proper procurement processes were adhered to.
The proclamation allows the SIU to delve deeper into allegations of corruption and maladministration in the affairs of the Gauteng Department of Health and Tembisa Hospital.
SIU spokesperson Kaizer Kganyago said Proclamation 136 of 2023 followed the secondment agreement investigation that the SIU conducted at Tembisa Hospital on behalf of the Gauteng government into allegations of corruption flagged by the late Babita Deokaran, the acting chief director of financial accounting in the Gauteng Department of Health.
The SIU had initially conducted a probe which was commissioned by the then-Gauteng Premier David Makhura, and they uncovered irregularities in the awarding of tenders. In its recommendation, the SIU asked Makhura to place the Chief Financial Officer of Gauteng Health, Lerato Madyo, and CEO of Tembisa Hospital, Ashley Mthunzi, on suspension.
The two were suspended after the SIU found information that Deokaran – a senior accountant in the department, had flagged payments to Sekhokho’s companies as “possibly fraudulent’’, but Madyo and Mthunzi allegedly ignored the warnings.
Kganyago said the findings from the investigation warranted the SIU’s request for a proclamation to investigate the affairs of Tembisa Hospital.
“The purpose of the secondment was to enable the SIU to gather evidence in relation to the allegations that would enable the SIU to make an informed decision to motivate for a proclamation and validate the allegations and establish a link between senior officials and the irregular and fraudulent payments. The SIU is now empowered to investigate a possible syndicate activity of corruption and fraud, and cover areas that were not included in the secondment agreement.”
From the secondment investigation, the SIU was able to confirm the following:
– The allegations of maladministration and possible fraud and corruption related to the supply chain management process were confirmed.
– Fraudulent suppliers and/or service providers were conducting business with the hospital and that possible fraudulent payments were made to those service providers.
– There were numerous irregularities relating to bid documents by successful and unsuccessful bidders at the hospital, which should have led to the disqualification of the bidders.
– Service providers were appointed irregularly, which led to irregular expenditure in the Department of Health and Wellness at the hospital.
– The CEO at Tembisa Hospital, at the time of the irregular procurement, was responsible for authorising purchase orders and request forms, which led to the irregular appointment of 13 service providers.
Kganyago said that under the proclamation, the SIU would investigate the procurement of or contracting for goods and services by or on behalf of the department for the Tembisa Hospital, or by the hospital, and payments made in respect thereof in a manner that was not fair, competitive, transparent, equitable or cost-effective, or that violated guidelines issued by the National Treasury or the relevant provincial Treasury.
“The SIU will investigate unauthorised, irregular, or fruitless and wasteful expenditure incurred by the Gauteng Department of Health, Tembisa Hospital, or the state, while also investigating any unlawful or improper conduct by officials or employees of the department or the Tembisa Hospital, the applicable suppliers or service providers or any other person or entity.
“The gazetting of the proclamation comes at a time when the SIU’s investigations have reached an advanced stage. The proclamation enables the SIU to:
– Subpoena evidence, electronic gadgets, bank accounts, and interrogate witnesses under oath.
– Delve deeper into the procurement of or contracting for goods and services by or on behalf of the department for the Tembisa Hospital, or by the Tembisa Hospital.
– Act against officials who were fingered in the SIU’s preliminary investigation.
– Institute civil litigation to recover money and assets lost by the state.
– Pursue officials that resigned or retired by going after their pensions.
– Make criminal referrals to the relevant prosecuting authority.
– Make referral to relevant professional practice regulatory bodies like the South African Revenue Service and Treasury for blacklisting.
Kganyago said the SIU’s investigation related to allegations of unlawful and improper conduct that took place during the period January 1, 2020 to September 1, 2023.