Ten months after the National Health Laboratory Service (NHLS) fired its acting CEO, its CFO and supply chain manager now face charges of allegedly failing to apply due diligence to allegations of fraud and misconduct regarding the procurement of personal protective equipment (PPE).
The NHLS is already under investigation by the Special Investigating Unit (SIU) for alleged financial irregularities in awarding R170m worth of Covid-19 tenders.
But the organisation said its operations will not be affected.
Spokesperson Mzimasi Gcukumana said measures have been taken to ensure the suspensions will not hamper operations.
“The NHLS has adequate numbers of testing kits. There are no backlogs other than a small backlog of 766 tests in the Eastern Cape, which has been experiencing high volumes. These tests are being cleared.”
Board chair Prof Eric Buch would say only that they had “prima facie evidence of misconduct” against CFO Michael Sass and supply chain manager Tlangelani Mabundza.
The two were suspended on November 17, a day after the lab received a PwC forensic investigation report into alleged financial irregularities.
Earlier this year, the NHLS, with the SIU, secured an order from the high court in Pretoria to stop the payment of pension benefits to its former acting CEO, Joyce Mogale, who, with CFO Sikhumbuzo Zulu, was fired for “procurement irregularities” worth R200m.
The two were charged for this and failure to fulfil their duties in relation to three procurements.
Buch said that in May 2020 the CEO of the NHLS, Dr Kamy Chetty, requested an internal audit of the laboratory’s procurement of services and equipment (including PPE) for the Covid-19 emergency during the first half of the year.
He said the alleged misconduct identified in the PwC report must remain confidential while the disciplinary and related legal processes take their course.
Hawks spokesperson Katlego Mogale confirmed they were investigating a number of PPE-related matters.
Victor Nkhwashu, lawyer for Gauteng businessman Hamilton Ndlovu, confirmed the eight contracts awarded to his client’s Hamilton Holdings, an engineering solutions company, were under scrutiny.
Ndlovu made headlines in May after he posted a video boasting about buying a fleet of luxury vehicles worth more than R11m.
“Until such time that there is a pronouncement by the court our clients will reserve their rights to comment.”
SIU spokesperson Kaizer Kganyago said their investigation into alleged PPE irregularities amounting to R8bn and about 700 companies were at an advanced stage.
“The SIU is working very closely with other law-enforcement agencies, such as the AFU (Asset Forfeiture Unit), Hawks, SARS and the NPA.”
