Fraudsters ordered to repay R4.4m
The Special Investigating Unit (SIU) has welcomed an order by the Special Tribunal, ordering a former assistant state attorney, two other individuals and Ntandokazi Trading to pay back more than R4.4 million with interest, fraudulently claimed for midwifery medico-legal services.
On Wednesday, the Special Tribunal ruled former assistant state attorney Nosipho Zibani, as well as Yolanda Tebogo Hlatshwayo, Phindile Zibani and Ntandokazi Trading must jointly pay the Gauteng health MEC R4.45 million and a further R135 000 in fraudulent claims and damages respectfully.
The Special Tribunal also ordered the forfeiture of pension benefits of R798 939, held with the Government Employees Pension Fund, which belongs to Zibani.
The SIU was granted a preservation order for pension benefits on 10 October, 2020, pending the finalisation of the legal action.
The SIU investigation into the state attorney revealed that in 2016-17, Zibani, Hlatshwayo and Zibani entered into an oral agreement to defraud the MEC through fraudulent medico-legal schemes.
Hlatshwayo purportedly issued invoices to the state attorney in matters assigned to Zibani as the attorney of record for the MEC when she did not render such services.
The invoices were purportedly in relation to midwifery medico-legal services Hlatshwayo rendered.
Zibani was employed as an assistant state attorney and served in the medical negligence unit.
In this capacity, Zibani was the attorney of record in matters in which the MEC was cited as the defendant.
Plaintiffs instituted action against the MEC for the alleged negligent conduct of medical health professionals working in public health institutions, resulting in a child being born with cerebral palsy.
A probe in the state attorney’s accounting department showed nine fraudulent invoices amounting to R4.4 million by Ntandokazi Trading, which were authorised and paid by the former assistant state attorney.
The findings prompted the launch of disciplinary proceedings against Zibani. She resigned from the office of the state attorney before the disciplinary proceedings commenced.
The Special Tribunal also ordered the defendants to jointly and severally pay the legal costs, including two counsel.
The outcome of the Special Tribunal is a continuation of implementation of the SIU investigation outcomes and consequence management to recover assets and financial losses suffered by state institutions and/or to prevent further losses.
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