The Eastern Cape health department has uncovered a multi million rand scam. The syndicated activity is allegedly involving officials within the department. Initial internal investigation has revealed that the department may have been defrauded millions of rands over the past two years.
A search and seizure operation by internal investigators has discovered quotation books and company stamps belonging to some staff members. It is believed that these officials would manipulate procurement procedures and fraudulently award tenders to their own companies instead of opening up the market.
Seven officials have been put on precautionary suspension in connection with the alleged syndicated activity. The suspended officials include a deputy director, three directors and junior staff based in Bhisho head office. They will remain on full pay pending the outcome of the internal investigations. A deputy hospital manager has also been fired after being found guilty of fraud with another form of corruption.
To minimise cost to the taxpayer of having suspended officials on paid leave for long periods, the department is speeding up disciplinary processes against them. Recently seven senior emergency services officials were fired following an internal disciplinary process. They were part of a group that used an air ambulance to fly to Bloemfontein for a confederation’s cup soccer match in June 2009.
The department has adopted a zero tolerance on fraud and corruption activities. It has also issued 75 officials from across the province with final warning letters. The officials were found to have been responsible for irregular procurement of services amounting to over R80 million. This was in contravention with the Public Finance Management Act.
This means that future contraventions will not be tolerated and officials will be dealt with severely in terms of the internal disciplinary measures which might lead to dismissals. Apart from the internal investigation police are also looking into the matter for possible criminal investigation.
The department wishes to send a clear message to its employees that fraud and corrupt practices will not be tolerated and anyone found guilty of such will have to face the consequences.
Enquiries:
Sizwe Kupelo
Departmental Spokesperson
Cell 083 378 0196
Source: Department of Health, Western Cape Provincial Government
