Gauteng Health Department slow to act on wasteful R500m contract

18 June 2018

The Gauteng Health Department has not yet concluded an investigation into a R500 million data storage contract with Telkom that it admits was totally unnecessary.

Gauteng Health MEC Gwen Ramokgopa says in a written reply to my questions in the Gauteng Legislature that there is an ongoing investigation and “fieldwork is currently being conducted across all the sites where the V-Block is deployed.”

Ramokgopa says that her department will only respond on possible disciplinary action and criminal charges once the investigation is concluded.

I am disappointed by the slow progress in this matter as it was revealed in November last year that R500 million had been wasted on the massive V-Block data-storage facility, whereas the storage facility at the e-governance department could have been used instead.

The contract was awarded on 11 September 2014 when Qedani Mahlangu was MEC for Health.

I suspect that corruption was involved that could have included Mahlangu and senior officials.

We need to know who benefited from this contract and what money can be recovered from this huge blunder.

R500 million could have built 12 clinics or hired a thousand nurses for a year, or used for new machinery and the repair of dilapidated hospitals.

It is essential that corruption and inefficiency in this department is rooted out so that money is spent efficiently and effectively to provide quality health services.

Issued by Jack Bloom, DA Gauteng Shadow Health MEC, 18 June 2018