Slow investigation into Gauteng Health corruption

8 December 2016

A final report to President Jacob Zuma is being prepared concerning corruption in the Gauteng Health Department more than six years ago, and is anticipated to be presented to the Presidency by March 2017.

This is revealed in a written parliamentary reply by the Department of Justice and Constitutional Development to questions posed by DA MP Werner Horn (see reply below).

According to the reply, the investigation on Presidential Proclamation R21 of 14 May 2010 is finalised, and the Special Investigating Unit is working with the Asset Forfeiture Unit in attending to three matters.

The SIU referred evidence or alleged corruption, fraud and theft to the relevant Prosecuting Authority during 2011 and 2013 respectively in relation to the following:

I. The appointment of 3P Consulting (PTY) Ltd vide Johannesburg, CAS 755/09/2011; and
II. The appointment of the Baoki Consortium. The matter is under investigation by the Anti-Corruption Task Team (ACTT) vide, ref 40/2013.

No person has been charged with any offense, but a decision on this will follow the completion of investigations.

I am disappointed at the slow pace of the investigation but it seems that the net is closing in on Brian Hlongwa, the ANC's Chief Whip in the Gauteng Legislature.

Hlongwa was the MEC for Health when the alleged massive corruption occurred involving more than R1 billion in contracts.

According to evidence submitted in court by the National Director of Public Prosecutions (NDPP), which has brought an asset forfeiture application against him, there was "an apparent and generally corrupt relationship between Hlongwa and Payne" (note: Richard Payne was the MD of 3P Consultants).

Payne is alleged to have paid Hlongwa R1.6 million to assist him to buy a house in Bryanston in north Johannesburg for R7.2 million.

The Baoki Consortium, which was awarded a R1.4 billion contract in December 2007 to provide a Health Information System for Gauteng hospitals, has not opposed the NPA's asset forfeiture application against them.

The evidence against them includes the role of Mr Heinz Smidek, whose companies were part of the Baoki Consortium, in purchasing Hlongwa's former home at 16A College Drive in Bryanston for R4.6 million as well as other gratifications to Hlongwa in order for him to allegedly improperly influence the award of the tender to Baoki.
The evidence against Hlongwa and senior former officials of the department is comprehensive and damning.

The Gauteng Health Department has yet to recover from Hlongwa's disastrous tenure when financial controls dissolved and service delivery suffered.

It is important that justice is seen to be done and all those accountable should be charged as soon as possible.

Issued by Jack Bloom, DA Gauteng Shadow MEC for Health, 8 December 2016