The fraud and corruption case against 17 individuals and six companies implicated in defrauding the Free State Department of Health is set to be heard in the Bloemfontein Magistrate’s Court on 14 March.
The suspects, facing charges ranging from fraud, corruption, forgery, money laundering and contravention of the Public Finance Management Act, are current and former employees of the department.
Following ongoing investigation by the Hawks’ Serious Commercial Crime Investigation Unit in Bloemfontein, Godfrey Mahlatsi (52), head of the Free State Department of Health, reportedly handed himself over to investigators on 11 February in connection with the multimillion-rand fraud and corruption case. He was granted bail of R5 000 following his court appearance on the same day.
According to Phaladi Shuping, provincial spokesperson for the National Prosecuting Authority, the suspects and companies face a total of 304 charges.
Mahlatsi is facing 44 counts of contravention of the Public Finance Management Act for his failure to prevent unauthorised, irregular and wasteful expenditure.
It is said that R8,7 million was paid by the department for services that were not rendered.
“The state alleges that Mahlatsi failed to take the necessary steps against the responsible officials, even after the auditor-general had notified the department that the transactions were against the law,” said Shuping.
Initial findings revealed that during the regulatory audit in the department in Bloemfontein, the audit team requested information on certain payments to service providers and subsequently queried the procurement processes that were implemented.
“An internal investigation followed, whereby it was discovered that false or forged ‘requests for payment advice’ were submitted between January 2011 and December 2015 for payments to service providers,” said Capt. Christopher Singo, provincial spokesperson for the Hawks.
“It is further alleged that no evidence could be found of actual services rendered by the service providers. The department suffered a total loss of more than R8,7 million, which was paid to the service providers.”
According to Singo, the auditor-general’s findings led to the Hawks’ investigation and culminated in the arrest of the suspects.
The suspects arrested in August last year are Dr David Motau (former head of the provincial Department of Health), Motsumi Polori, Sarah Legobate, Gloria Gogo, John Chakane, Limakatso Mabitle, Hazel Ncukana, Colleen Kala, Jack Letlojane, Tsietsi Polori, Simon Johnson, Thabo Moeti, Victor Kwababa, Simon Njonga, Lebohang Beqezi and Charity Moloi.
The six implicated companies are Tsa Rona Consultancy, Siphilile Investments, Azrago, Land Breeze Trading 623, Akholwa Consultancy Training and Zen Communications.
