The trial of a fraud and money laundering case in which the Free State’s Department of Health has been swindled out of R8,7 million is to continue in the Free State High Court on 5 May next year.
The suspects on trial include six companies, seven directors, and 13 government officials. Among them, two are former heads of the department, namely Dr David Motau and Godfrey Mahlatsi. The latter now heads the Provincial Accountant-General (PAG) following the recent changes in the different provincial departments by Premier Maqueen Joyce Letsoha-Mathae.
According to the National Prosecution Authority (NPA), Mahlatsi is facing 44 counts of contravention of the Public Finance Management Act regarding his failure to prevent unauthorised, irregular, and wasteful expenditure.
Mahlatsi
The other accused individuals are: Motsumi Polori, Sarah Legobate, Gloria Gogo, John Chakane, Limakatso Mabitle, Hazel Ncukana, Colleen Kala, Jack Letlojane, Tsietsi Polori, Simon Johnson, Thabo Moeti, Victor Kwababa, Simon Njonga, Lebohang Beqezi and Charity Moloi. Retired employees of the department are Johnson, Chakane, Mabitle, and Beqezi.
The state has instituted 304 charges relating to the contravention of the Public Finance Management Act, forgery, uttering, fraud, corruption and money laundering. Probing by the Free State Hawks’ Serious Commercial Crime Investigation team revealed the accused allegedly colluded to siphon R8,7 million from the department through different entities between 2011 and 2015.
Lt. Col Zweli Mohobeleli, provincial spokesperson for the Hawks, said this probing had followed the Auditor-General’s (AG) findings, culminating in the arrest of the accused. Probing revealed that during the regulatory audit in the department in Bloemfontein, information was requested on certain payments to service providers, and the procurement processes that were implemented were subsequently queried. It was discovered that false or forged “requests for payment advice” were submitted between January 2011 and December 2015 for payments to service providers.
According to the findings, the payments made to the companies were as follows:
- R2 758 978 was paid to Tsa Rona Consultany;
- Siphilile Investments was paid R125 982;
- Azrago received R97 500;
- R704 520 was paid into the account of Land Breeze Trading 623;
- Akholwa Consultancy Training received R1 508 462; and
- Zen Communications got R3 565 868.
On 8 November, the state secured two convictions in the Free State High Court, but the court imposed suspended sentences against Johnson Gerald Similo (47) and his company, Siphilile Investments (Pty) Ltd. Similo was sentenced to five years’ imprisonment and his company was fined R200 000. These sentences were wholly suspended for five years, each on the condition the director and his company are not found guilty of fraud and money laundering during the period of suspension.
Mohobeleli has confirmed that no part of the looted money was recovered.
