Companies implicated in Tembisa Hospital corruption still getting contracts at Gauteng hospitals

Issued by Jack Bloom MPL – DA Gauteng Shadow MEC for Health
16 Oct 2023 in Press Statements

Despite pledges that shady companies implicated in the Tembisa Hospital corruption would be blacklisted, at least four companies that the SIU is investigating have received contracts worth R1.2 million in the last three months.

This is revealed by Gauteng Health and Wellness MEC Nomantu Nkomo-Ralehoko in a written reply to my questions in the Gauteng Legislature.

The four companies are all linked to Johannesburg businessman Paul Mojalefa Mokoena, who is also associated with companies irregularly awarded contacts at Tembisa Hospital. These are the irregular contracts that murdered whistleblower Babita Deokaran wanted to stop.

According to the MEC, there were irregularities in all the contracts awarded to Mokoena’s 14 companies, and none of them are registered with the SA Health Products Regulatory Authority (SAHPRA).

Last month the MEC responded to the call by the “Justice for Babita” petition to blacklist implicated companies by stating that “Blacklisting can only be done after the outcome of the investigation; however, measures have been put in place to ensure there is no re-occurrence and not to procure to the affected companies.”

But in the list of payments given in reply to my questions on the Mokoena-linked companies, the following recent contracts were given:

• Meiday Trading and Projects got seven contracts worth R447 000 on 14 August this year to supply meat to the Sebokeng Hospital.

• Oneall Distributors got seven contracts on 21 July to supply meat to Sebokeng Hospital for a total cost of R482 150. On 17 August, they got a R360 000 contract to supply diesel and two contracts to supply fish costing R432 200 to Tambo Memorial Hospital.

• Malito got six contracts on 14 September to supply 41 pairs of shoes costing R38 950 to Tambo Memorial Hospital.

• The Mafahla Group got five contracts on 19 July to supply milk products costing R170 936 to Sebokeng Hospital. On 14 August, it got two contracts worth R63 000 to supply surgical materials to Pholosong Hospital.

It is outrageous that these companies, which are being investigated for alleged bid-rigging, are still getting contracts. They were all awarded by hospital CEOs on a request-for-quotation basis as they are under R1 million.

The DA calls for effective measures to immediately halt contracts with the 224 companies implicated in vile corruption that steals money needed to fix our ailing hospitals.