Former Gauteng Health MEC in the dock on fraud charges

By Kaya 959 Reporter

Former Gauteng Health MEC Brian Hlongwa has been released on bail after he and seven others appeared in court on Tuesday for tender fraud.

The NPA says six entities are also implicated in the matter and collectively, the accused face 258 charges ranging from fraud, corruption, money laundering and racketeering.

NPA spokesperson, Phindi Mjonondwane, says their bail has conditions attached.

“All accused were released on bail ranging from R20 000 to R50 000 each with conditions attached to their release. They must hand over their travelling documents and cannot leave the Republic of South Africa without permission from the investigating officer.”

Mjonondwane says the case stems from a Special Investigating Unit report into the affairs of the Department of Health at the time Hlongwa was a MEC.

She adds that the report detailed alleged corruption in the awarding of tenders to his acquaintances including Richard John Payne.

“Payne and Hlongwa were acquaintances and business partners who knew one another from the time when Hlongwa was a Councilor in the City of Johannesburg. 3P Consulting (Pty) Ltd, a company in which Payne held joint ownership and directorship together with Kingdom Lolwane (accused 6), was contracted to do work for the CoJ,” says Mjonondwane.

The NPA reports that 3P Consulting followed Hlongwa from its municipal business to provincial business operations, mainly in the Department of Health, where Hlongwa was a political head.

“It was awarded the tenders or contracts in the Gauteng Department of Health for the turnaround strategy, the preparation and compilation of the Gauteng DoH 2007/2008 budget, the Project Management Unit and the extension of the PMU contract,” the NPA says.

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Case remanded to April 2022

Mjonondwane explains that at the time when the tenders or contracts were awarded to 3P Consulting, Sybil Ngcobo was the Head of Department. Obakeng Stephen Mookeletsi was the Deputy Director-General: Executive Support Programme Management.

The other accused, Valdis Ntsieni Ramaano, was the Chief Director: Supply Chain Management. Accused number four, Abdul Kalam Mohammed Mahmudur Rahman, was the special advisor to the MEC.

Mjonondwane says the Project Management Unit was initially awarded a tender for a two-year term at a total value of R68 000 000.

The tender was extended for a further period of three years with a contract value of R273 366 500.

“The Department of Health paid a total amount of R347 678 325.08 for the PMU tender/contract before the expiration of the five-year term,” she says.

The NPA says 3P Consulting (Pty) Ltd charged the Gauteng Department of Health an extra surcharge of 5% administrative fee on each and every invoice that was submitted to the Department of the PMU.

This was done despite the fact that such an administrative fee was not part of the bid included in the Service Level Agreement, says Mjonondwane.

She says the state also alleges that the accused benefitted through travel expenses, home purchases, and home refurbishments.

“The case was remanded to 22 April 2022 to secure the attendance of Pillay and his company.”

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Written by: Tamlyn

Brian Hlongwa Corruption Crime South Africa Fraud Gauteng health tender fraud