BusinessDay - Task team to probe graft at Gauteng health

Task team to probe graft at Gauteng health

Charges against several senior officials in the Gauteng health department for unauthorised expenditure of more than R1bn have been referred to the Anti-Corruption Task Team for further action

SETUMO STONE

Published: 2012/08/01 07:00:24 AM

CHARGES against several senior officials in the Gauteng health department for unauthorised expenditure of more than R1bn have been referred to the Anti-Corruption Task Team for further action, Special Investigating Unit (SIU) spokesman Boy Ndala said yesterday, on behalf of the task team.



The involvement of the Anti-Corruption Task Team, a multi-agency team, indicated that the matter was to be pursued from all possible angles, suggesting that some of the issues uncovered by the SIU were seen to involve "high-level corruption".



President Jacob Zuma established the task team in July 2010, with a target "to convict 100 persons of corruption who have more than R5m in illicit assets". It is made up of the National Prosecuting Authority (including the Asset and Forfeiture Unit), the Hawks, the Financial Intelligence Centre, South African Revenue Service and the SIU.



According to an interim annual report of the SIU tabled in Parliament last week, three charges of fraud have been laid against several senior officials of the department, as well as service providers. "All charges are based on misrepresentations these parties made to the department which resulted in improper payments to service providers".



Officials against whom charges have been laid include the former head of the department, the former chief financial officer, and a chief director. The SIU has recommended that two claims for damages, for the loss of R15.3m and R1.2m, be lodged against senior officials, said the annual report.



The department recently announced a two-year turnaround strategy, after it acknowledged owing providers for services delivered as far back as 2007. It had been expected that the final report on the matter, which came to light in 2008, could be released before the end of this year.



Mr Ndala said "investigations are at a sensitive stage".



In 2008, the Gauteng health department initiated an investigation on how it "erroneously" paid nearly R240,000 for the private security of its head of department at the time, Sybil Ngcobo, after MEC Brian Hlongwa denied the payment in his reply in the provincial legislature.



The SIU interim report identified 10 procurement matters worth more than R1bn for investigation, and recommended the recovery of about R11m in duplicate payments made to one service provider.



An 18-member SIU team including forensic investigators, lawyers, accountants and specialised information technology and forensic analysts was handling the case before it was referred to the task team.



Democratic Alliance Gauteng health spokesman Jack Bloom said yesterday that he was expecting "more rot to be revealed as the investigation proceeds".



"The big question is whether political figures were involved in the extensive looting in this department," said Mr Bloom in a statement. "Every effort must be made to punish the culprits and recover as much stolen money as possible."



Gauteng Premier Nomvula Mokonyane appointed a new health MEC, Hope Papo, last month.



stones@bdfm.co.za

BusinessDay - Task team to probe graft at Gauteng health