Four Gauteng Officials Arrested for R1 Billion Bid Fraud



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By Baldwin Ndaba Article publication timeOct 22, 2020

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The National Tax Authority (NPA) has finally arrested former Gauteng health department HOD Sybil Ngcobo for alleged criminal offenses that took place for more than a decade while he was in command of the province.

Ngcobo turned herself in to the NPA today where she and three other people: Mmakgosi Mosupi, former head of Health IT; Valdis Romaano, former director of supply chain management; and Dr. Obakeng Mookeletsi, former Deputy General Manager for Executive Support.

The former HOD was charged with violating the Public Finance Management Act (PFMA), while her co-defendants were each charged with one count of corruption.

The charges against him were related to a tender for the provision of Health Information Systems and e-HR systems for the provincial health department in 2008, subject to confirmation of funding by the provincial Treasury.

The State alleges that it was subsequently awarded to the Baoki Consortium, which was made up of AME Africa (Pty) Ltd, Health System Technology (Pty) Ltd, AME HST (Pty) Ltd and Equiton Investments (Pty) Ltd.

The estimated cost for the new HIS and e-HR systems was R630m.

However, according to the state, the total final value of the tender awarded to the Baoki Consortium was R1 045 174 125.12.

NPA spokesperson Sipho Ngwema said Gauteng Health appointed a company called 3P Consulting (Pty) Ltd (3P) to manage various contracts.

“On March 28, 2008, a Service Level Agreement (SLA) was signed between GDoH and the Baoki Consortium. On May 23, 2008, Mosupi and Mr. Mookeletsi, together with representatives of the Baoki Consortium (AME HST Technology and Equiton), signed a change order to allow the Baoki Consortium, through AME, to contract the supply services of energy (generators), furniture, network, computer literacy and catering. The value of the change order was R13 369 693.89, ”said Ngwema.

It said that the services that were contracted by the Baoki Consortium as a result of the May 2008 change order were not services related to the original tender listed in the RFP (Request for Proposal). The change order was supposed to be a separate tender or that GDoH will acquire it internally by tender.

“The supplier of the furniture in the change order was Ukwakha Design (Pty) Ltd (Ukwakha). This company was owned by Richard Payne. This meant that the Baoki Consortium contract was administered by 3P, with Payne as one of its directors. In turn, the subcontracting company that supplied furniture, Ukwakha, was owned by Payne.

Negotiations for the HIS and e-HR implementation agreement for GDoH were handled by 3P on their behalf. The implementation agreement needed a signature from the Gauteng MEC for Finance to be an effective agreement that can legally bind the Gauteng provincial government for future financial commitments, ”said Ngwema.

The State alleges that the four did not consult the MEC of Finance at that time.

All four promised to plead not guilty to the charges against them.

Ngcobo was granted bail of 8,000 rand, while his co-defendants were released on bail of 25,000 rand.

They are due to return to court on December 3.

Political Bureau



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