Former Gauteng health MEC Brian Hlongwa and seven others linked to alleged tender fraud in the department were granted bail ranging from R20,000 to R50,000 by the Johannesburg magistrate’s court on Tuesday.
Hlongwa, 55, his wife Joeline, 57, and six co-accused — including executive officials and private individuals — were in court on charges of fraud, corruption, money laundering and an alleged “pattern of racketeering activity” perpetuated against the department.
The co-accused are Obakeng Mookeletsi, Sybil Ngcobo, Valdis Ramaano, Abul Kalam Mohammed Mahmudur Rahman, Reatile Kingdom Lolwane, Richard John Payne, Maghanderen Niven Pillay and Joeline Crystal Davids-Hlongwa.
Payne didn't appear in court as he is outside the country. Processes are under way to have him extradited.
The companies are 3P Consulting, Ukwakwa Design, Midnight Masquerade Properties 72, and Golden Pond Trading 363. Also, Brisigo Properties, Regiments Healthcare, and Ergold Property No 8 CC.
They are collectively facing 268 charges. The bail conditions stipulate that they must surrender their passports and report their interprovincial and international trips.
According to the indictment, Payne and Hlongwa were acquaintances and business partners who knew one another at the time when Hlongwa was a Johannesburg councillor. 3P Consulting (Pty) Ltd was contracted to do work for Johannesburg, it said.
“3P Consulting came up with a concept of a project management unit in the turnaround strategy. The Gauteng department of health accepted this concept and advertised a tender for a project management unit where a private company was to be appointed to manage projects for the Gauteng department of health. 3P was paid for the turnaround strategy,” the indictment read.
The project management unit which was initially awarded for a two-year term worth R136m ended up being extended for three years, with a contract value of R273,366,500.
“The Gauteng department of health paid a total of R347,678,325.08 for the project management unit tender/contract before the expiration of the five-year term.
“3P charged the department an extra surcharge of a 5% administrative fee on every invoice that was submitted to the department,” said the indictment.
Asked why it took the NPA so long to take the matter to court, Phindi Mjonondwane, NPA spokesperson, said the investigations were complex.
“We don't conduct the investigations, but guide them. We had to give stakeholders the space they needed to do their work,” she said.
The matter was adjourned to April 22 by magistrate Simon Radasi for the prosecution to secure the attendance of Payne, one of the accused. The state is applying for his extradition.
TimesLIVE
Bail granted to former Gauteng health MEC Brian Hlongwa
Image: Kgaugelo Masweneng/TimesLIVE
Former Gauteng health MEC Brian Hlongwa and seven others linked to alleged tender fraud in the department were granted bail ranging from R20,000 to R50,000 by the Johannesburg magistrate’s court on Tuesday.
Hlongwa, 55, his wife Joeline, 57, and six co-accused — including executive officials and private individuals — were in court on charges of fraud, corruption, money laundering and an alleged “pattern of racketeering activity” perpetuated against the department.
The co-accused are Obakeng Mookeletsi, Sybil Ngcobo, Valdis Ramaano, Abul Kalam Mohammed Mahmudur Rahman, Reatile Kingdom Lolwane, Richard John Payne, Maghanderen Niven Pillay and Joeline Crystal Davids-Hlongwa.
Payne didn't appear in court as he is outside the country. Processes are under way to have him extradited.
The companies are 3P Consulting, Ukwakwa Design, Midnight Masquerade Properties 72, and Golden Pond Trading 363. Also, Brisigo Properties, Regiments Healthcare, and Ergold Property No 8 CC.
They are collectively facing 268 charges. The bail conditions stipulate that they must surrender their passports and report their interprovincial and international trips.
According to the indictment, Payne and Hlongwa were acquaintances and business partners who knew one another at the time when Hlongwa was a Johannesburg councillor. 3P Consulting (Pty) Ltd was contracted to do work for Johannesburg, it said.
“3P Consulting came up with a concept of a project management unit in the turnaround strategy. The Gauteng department of health accepted this concept and advertised a tender for a project management unit where a private company was to be appointed to manage projects for the Gauteng department of health. 3P was paid for the turnaround strategy,” the indictment read.
The project management unit which was initially awarded for a two-year term worth R136m ended up being extended for three years, with a contract value of R273,366,500.
“The Gauteng department of health paid a total of R347,678,325.08 for the project management unit tender/contract before the expiration of the five-year term.
“3P charged the department an extra surcharge of a 5% administrative fee on every invoice that was submitted to the department,” said the indictment.
Asked why it took the NPA so long to take the matter to court, Phindi Mjonondwane, NPA spokesperson, said the investigations were complex.
“We don't conduct the investigations, but guide them. We had to give stakeholders the space they needed to do their work,” she said.
The matter was adjourned to April 22 by magistrate Simon Radasi for the prosecution to secure the attendance of Payne, one of the accused. The state is applying for his extradition.
TimesLIVE
READ MORE:
Former health MEC Brian Hlongwa due in court over decade-old scandal
Interpol roped in, charges laid against Gupta man as 'big cleanup' gets underway
NPA promises more 'developments' in Gauteng health tender fraud case
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos