The Democratic Alliance (DA) in Gauteng has laid criminal charges today against Ms Lerato Madyo, the Gauteng Health Department’s former Chief Financial Officer (CFO) who failed to act on slain whistleblower Babita Deokaran’s report on possible fraudulent transactions at the Tembisa Hospital.
Shortly before her death, Babita sent her this WhatsApp message: “Morning CFO, I am just worried that the guys in Tembisa are going to realise we are onto something. Our lives could be in danger.”
Madyo initially froze the R104 million in payments to suspicious companies that Babita flagged but later allowed them to be paid. After telling Babita she would act on her recommendation for a forensic investigation of transactions worth R850 million she only did a small sample audit at the hospital, and even this report was suppressed.
The Gauteng Health Department dragged out her disciplinary enquiry on 13 misconduct charges for two years. Scandalously, they allowed her to resign shortly before a finding was to be made, so she walked off with her pension and R3 million paid to her while she was suspended.
She is surely a chief suspect amongst the small number of those who could have tipped off the mastermind behind Babita’s murder.
Currently, she goes under the name of Daniella Molapo.
The DA has laid the following charges against her:
Contravening Section 34 of the Prevention and Combating of Corrupt Activities Act (PRECCA) which makes it a criminal offence not to report corruption, theft, fraud, extortion, or forgery if the value is R100 000 or more, as well as violating Section 21 of PRECCA concerning a conspiracy to commit an offence; Contravening Section 18 of the Criminal Procedure Act which deals with attempting or conspiring to commit an offence such as fraud; Violations of the Public Finance Management Act (PFMA) including the following sections:
3.1 Section 38 which covers the failure to immediate report the discovery of any unauthorised, irregular, or fruitless and wasteful expenditure to the Treasury, as well as failure to ensure effective, efficient, and transparent systems of financial and risk management and internal controls;
3.2 Section 51 which covers negligence in ensuring an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost-effective;
3.3 Section 45 which covers negligence in ensuring the system of financial management was upheld, leading to fruitless and wasteful expenditure and irregular expenditure;
3.4 Section 81 which covers financial misconduct for wilfully or negligently failing to exercise assigned powers and duties.
See the full charge sheet here.
The Democratic Alliance is laying these charges to ensure the police urgently investigate the alleged serious crimes and offences committed by Lerato Madyo in this matter.
We will not rest until all those implicated in the theft of more than R2 billion from Tembisa Hospital are charged and convicted in court. This includes the kingpins of the various syndicates who looted public money with fake companies, and most important of all, the mastermind who ordered Babita’s murder.