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Gauteng suspends 9 officials for irregularities over hospital contracts

Budget to upgrade facility donated by mine shot up from R50m to R588m

Nomazima Nkosi Senior reporter
Gauteng government has suspended senior officials implicated in tender irregularities scandal involving the building of a hospital.
Gauteng government has suspended senior officials implicated in tender irregularities scandal involving the building of a hospital.
Image: 123RF/HXDBZXY

The Gauteng government has suspended nine senior officials from the provincial health and infrastructure development departments.

This follows recommendations from the Special Investigation Unit (SIU) after it uncovered serious irregularities in the awarding of contracts for the refurbishment of the Anglo Ashanti Hospital in the West Rand.

The recommendations stems from the budget increasing to 10 times the cost from R50m to R588m.

The hospital was donated by AngloGold and meant to treat serious Covid-19 patients

In a statement issued on Sunday, Gauteng premier's spokesperson Vuyo Mhaga said the SIU had been investigating allegations of irregularities and maladministration in the procurement of goods and services related to government's response to the Covid-19 pandemic.

"On December 2021 the SIU made referrals to the Gauteng provincial government to institute disciplinary action against the nine senior managers who were implicated in irregularities in the awarding of contractors for the refurbishment of the Anglo Gold Ashanti Hospital, which was one of the hospitals earmarked for the treatment of Covid-19.

"The SIU has also made referrals to other state institutions for further investigation into the conduct of the implicated government officials and contractors.

"Three senior managers in the department of health and six senior managers in the department of infrastructure development were served with letters of suspension and disciplinary proceedings against them will commence as soon as charges are finalised," he said.

Mhaga added the Gauteng government had strengthened control systems to prevent fraud and corruption while at the same time improved capacity to detect, investigate and take appropriate action including instituting disciplinary action against staff and referring matters for criminal investigation.

Meanwhile, DA MPL Jack Bloom and the party's provincial health spokesperson welcomed the suspension of the officials but added there needed to be political accountability.

"The original refurbishment budget of R50m ballooned to R588m.  A further R144m has been spent on medical equipment, and more money for staff in an empty hospital.

"Although the hospital was officially opened in May last year, half of the 175 high-care beds have still not been completed, and only eight serious Covid-19 patients have been treated there.

"It’s a colossal waste of money on a white elephant hospital when existing hospitals desperately need more resources that can save the lives of more patients," he said.

Bloom said Gauteng premier David Makhura cannot escape accountability for the appalling corruption in the matter.

"He fired health MEC Bandile Masuku for not exercising effective oversight that would have prevented the PPE (persona protective equipment) corruption, and this principle applies to himself as well," he said.

An SIU report released last month investigated PPE related procurement as well as a number of contracts relating to hospital refurbishments since the emergence of Covid-19.

Gauteng emerged as the province with the highest number of contracts under investigation with a number of recommendations made, including handing over cases to law enforcement agencies for further investigation and prosecution.

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