SIU to probe R250m lost to graft at NHLS

Ramaphosa promises civil action against all found complicit in case

CIVIL action would be instituted against those implicated in alleged maladministration, improper conduct and loss of public funds at National Health Laboratory Service (NHLS), said the Presidency.

This follows President Cyril Ramaphosa’s order to the Special Investigating Unit (SIU) yesterday, to launch multiple probes into several contracts at the NHLS. More than R250million was reportedly lost due to alleged corruption at the institution.

Among the contracts to be investigated by the SIU is the provision of computers, the leasing of cars, tenders at the Charlotte Maxeke Academic Hospital in Joburg and at other institutions linked to health services.

There were more than 12 tenders to be investigated by the SIU over a fiveyear period, said the Presidency.

The probes came after top senior officials of the NHLS were suspended last year over allegations of corruption.

Ramaphosa’s spokesperson, Khusela Diko, said the involvement of the SIU would ensure all issues of maladministration, improper conduct and loss of public funds were investigated.

“The NHLS is the largest diagnostic pathology service in South Africa with the responsibility of supporting the national and provincial health departments in the delivery of healthcare,” said Diko.

“Any unlawful or improper conduct by the employees or officials of the NHLS or applicable service providers will be examined by the SIU,” she said.

Diko said the SIU will investigate matters of alleged corruption from 2015 until this year.

She said the SIU would look at the tenders for computers at the NHLS over a three-year period.

The other allegations to be investigated include the renovation of a library at the National Institute of Occupational Health in Johannesburg, the renovation tender at the National Institute for Communicable Diseases, and the construction of a refectory at the latter institution.

The SIU will also go into the tenders awarded by other institutions linked to the NHLS, including the renovation tender at the Centre for Enteric Diseases.

She said the investigation into various contracts would be conducted and civil action would be instituted to recover the money.

Recently Ramaphosa set up the Special Tribunal to be used by the SIU and other agencies to recover stolen public funds.

This would fast-track civil claims against those who have defrauded the state because the rolls of the high courts in the country were full.

Ramaphosa appointed Judge Gidfonia Mlindelwa Makhanya to be president of the Special Tribunal and there would be seven other judges, including Western Cape High Court Judge Siraj Desai, to serve on the tribunal.

Ramaphosa authorised the SIU to investigate alleged wrongdoing within the Johannesburg Metropolitan Municipality, or by service providers in the city’s procurement of or contracting for

Any unlawful or improper conduct by the employees or officials of the NHLS will be examined by the SIU

Khusela Diko

President Ramaphosa’s spokesperson

vehicles – known as the “red fleet” – from Fire Raiders (Pty) Ltd in a 2014 tender, valued at R86.4million.

Diko said whistle-blowers alleged that, while the costs associated with the purchase of the “red fleet” were paid over to the service provider, delivery was not effected.

“The SIU has been authorised to investigate any alleged serious maladministration in connection with the affairs of the municipality.

“Improper or unlawful conduct by employees or officials of the municipality.

“Unlawful appropriation or expenditure of public money or property.

“And unlawful, irregular or unapproved acquisitive acts, transactions, measures or practices that have a bearing on state property,” she said.

The unit will investigate whether municipal employees, officials, contractors or service providers had acted in a corrupt manner; engaged in fraudulent, unauthorised, irregular or fruitless and wasteful expenditure, or had acted in a corrupt manner or unduly benefited themselves or other people or entities.

Diko said the investigation would cover the period between January 1, 2009 and the present.

It will look into suspected intentional or negligent loss of public money or damage to public property; possible offences under the Prevention and Combating of Corrupt Activities Act and unlawful or improper conduct, which has caused or may cause serious harm to the interests of the public.