Two allegedly linked to R1.2bn corruption in Gauteng health department outside the country



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  • Two businessmen allegedly linked to bidding corruption in the The Gauteng health department has not been arrested.
  • Four former senior employees of the department appeared in Business Crimes Court Thursday.
  • NPA national spokesperson Sipho Ngwema said the arrest warrants for Phil Austin, John Payne and their companies could not be executed.

Two businessmen allegedly linked to the R1.2 billion bidding corruption in the Gauteng health department in 2007 could not be arrested because they are out of the country.

John Richard Payne, Phil Austin and their respective companies, Ukwakha Dezign (Pty) Ltd and Life Channel Communications (Pty) Ltd, were expected to appear in the Commercial Crimes Court in Palm Ridge on Thursday along with four former senior employees of the department.

NPA national spokesperson Sipho Ngwema said the arrest warrants for Austin, Payne and their companies could not be executed.

Meanwhile, former head of department and accountant Sybil Ngcobo, former director of information and communications technology Mmakgosi Mosupi, former director of supply chain management Valdis Romaano, and executive support program manager Obakeng Mookeletsi appeared in court. on charges of corruption and contravention of the Public Finance Management Law.

Ngcobo was released on bail of 8,000 rand, while the rest were granted bail of 25,000 rand.

According to the charge sheet, the other defendants in the case are Payne, his company Ukwakha Dezign, Austin and his company Life Channel Communications.

Ngwema said the tender was subsequently awarded to the Baoki Consortium, consisting of AME Africa, Health System Technology, AMETHST and Equiton Investments, at an estimated cost of R630 million.

“However, the final total value of the tender awarded to the Baoki Consortium was R1 045 174125.12. The GDoH appointed a company called 3P Consulting (Pty) Ltd (3P) [Gauteng Department of Health] to manage multiple contracts on your behalf. On March 28, 2008, a Service Level Agreement (SLA) was signed between the department and the Baoki Consortium.

“On May 23, 2008, Mosupi and Mr. Mookeletsi, together with representatives of the Baoki Consortium, signed a change order to allow the Baoki Consortium, through AME, to contract the services for the supply of power generators, furniture, networks, computer training and The value of the change order was R13 369 693.89.

“The Hawks criminal investigation follows an SIU investigation [Special Investigating Unit] which was authorized by the president on May 14, 2010.

READ | ‘Why should I be arrested?’ – Former Gauteng Health MEC Brian Hlongwa in corruption case over R1.2bn tender

“The SIU was required to investigate the procurement and contracting of goods and services with respect to the provision of a Health Information System and Electronic Medical Records (HIS and e-HR) by the department during or around December 2007. They also had to investigate all the irregularities surrounding the contract, “said Ngwema.

Brian Hlongwa was the MEC of Gauteng Health at the time. On Thursday, the district attorney asked why he hadn’t been arrested either.

Hlongwa said that it was the NPA who made the decisions about who to arrest and that despite the accusations made against him, he was still a free man.

The case was postponed until December 3.

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