The state has secured the first successful prosecution in the Free State Department of Health’s R8,7 million rot, pertaining to corruption, fraud, and money laundering. This is after the Free State High Court handed harsh sentences to two persons and their respective companies on 16 May.
In total, 17 individuals and six companies are linked to the case of siphoning millions from the department during the period of January 2011 to December 2015. The suspects have been on trial since 2021, following their arrest by the Hawks’ Serious Commercial Crime Investigation unit in Bloemfontein.
Charges against them range from fraud and corruption to forgery, money laundering and contravention of the Public Finance Management Act (PFMA).
The accused include former employees of the department such as Dr David Motau, former head of the department.
While the trial of the remaining 15 suspects is set for 4 March 2024 in the Free State High Court, those already sentenced are Thabo Matthews Moeti (41) and his company Azrago (Pty) Ltd, as well as Mavuso Victor Kwababa (51) and his company Land Breeze Trading 623 (Pty) Ltd.
WO Fikiswa Matoti, provincial spokesperson for the Hawks, said Kwababa, Moeti and their companies had been found guilty on the aforementioned charges. They pleaded guilty to unduly receiving payments knowing full well they did not render any services towards the department.
The fraud case followed findings during the regulatory audit in the department. The audit team queried the procurement processes implemented, based on findings.
“An internal investigation discovered that false and forged requests for payment were submitted during the period of January 2011 until December 2015 to effect payments to service providers. Evidence proved that actual services were not rendered,” said Matoti.
Moeti was sentenced to 15 years in total: five years’ imprisonment for fraud, five years for money laundering, and five years for contravention of the Income Tax and Tax Administration Act. His company was fined R100 000 for contravention of the Income Tax Administration Act, in addition to 15 years’ imprisonment for similar counts.
Kwababa received a ten-year sentence: five years’ imprisonment for theft, and five years on two counts of money laundering. His entity was sentenced to 15 years’ imprisonment: Five years’ imprisonment for theft, five years on two counts of money laundering, and five years on two counts of contravention of the Income Tax Administration Act, in addition to a R100 000 fine.
Matoti said the sentences would run concurrently and were wholly suspended for a period of five years on condition that the accused are not found guilty on similar charges.
Other companies fingered are: Tsa Rona Consultancy, Siphilile Investments, Akholwa Consultancy Training and Zen Communications. Individuals who were singled out in the case’s investigation are Motsumi Polori, Sarah Legobate, Gloria Gogo, John Chakane, Limakatso Mabitle, Hazel Ncukana, Colleen Kala, Jack Letlojane, Tsietsi Polori, Simon Johnson, Simon Njonga, Charity Moloi and Lebohang Beqezi.
According to the National Prosecuting Authority (NPA), the individuals and the companies face 304 charges in total.
