Of 20 suspects in the case regarding the defrauding of the Free State Department of Health with R8,7 million, the first to have been found guilty and convicted has left no trace of money swindled through his company between 2011 and 2015.
The fraud-accused Johnson Gerald Similo (47) and his company, Siphilile Investments (Pty) Ltd, were sentenced in the Free State High Court on Friday, 8 November, for defrauding the department in question.
The sentencing of the company director and his company was the culmination of in-depth investigations by the Free State Hawks’ Serious Commercial Crime Investigation team, which uncovered the rot in the department.
Lt Col. Zweli Mohobeleli, spokesperson for the Hawks, said the court had found both Similo and his company guilty on charges of fraud and money laundering. He confirmed no money was discovered from the fraudster and his company.
Mohobeleli said Similo was among the 20 suspects arrested regarding the defrauding of the department. They include six companies; seven directors; and 13 government officials arrested in 2021 on allegations of fraud and money laundering involving R8,7 million.
“Similo was sentenced to five years’ imprisonment, wholly suspended for five years – while his company, Siphilile Investments (Pty) Ltd, was fined R200 000, wholly suspended for five years,” said Mohobeleli.
He said the suspension of sentences were granted on the condition Similo and his company are not found guilty of fraud and money laundering during the period of suspension.
“A Hawks investigation ensued following the discovery of irregularities by the office of the Auditor-General in 2015. Fraudulent payments were made to service providers between January 2011 and December 2015 under the pretext that they would provide training. The payments were done without actual services being rendered. As a result, the Department of Health was prejudiced and suffered a loss of R8,7 million,” said Mohobeleli.
He said the trial against the remaining accused began on Monday, 11 November, in the Free State High Court in Bloemfontein.
Mohobeleli said amongst the accused on trial were both former and current heads of the department.
