R32m corrupt Gauteng hospital security contracts

Security contracts for Gauteng state hospitals and clinics worth R32 million were awarded irregularly and have been terminated.

This is revealed  by Gauteng Health MEC Qedani Mahlangu in a written reply to my questions in the Gauteng Legislature.

According to Mahlangu, criminal charges of extortion have been laid against the Chairperson of the Bid Evaluation Committee, and disciplinary action against the four officials on the BEC is underway.

Mahlangu says that “losses were limited as the service providers amicably stopped providing services”.

The following companies had irregular contracts that were canceled:

Might Women Investments – R6 million

Skets Projects – R7 million

Mjayeli Security – R9 million

Bokone Bokone Guarding – R10 million

This matter appears to be linked to the arrest of Mr Abey Marokoane, Chief Director of Risk Management and Internal Control, in November 2014.

I am disappointed that the four companies have not been criminally charged as well, and money recovered from them. The two-year contracts were cancelled after more than a year, so more than R16 million was paid to them and should be reclaimed.

Why is the MEC going soft on these companies as corruption always involves two parties?

Last year I revealed that Bokone Bokone Guarding got six security contracts for Gauteng clinics despite being formed less than two months before the tender closed, whereas the tender specified a five year track record.

I will ask further questions about the fishy circumstances behind the Gauteng Health Department's R265 million award of hospital security contracts in September 2014. 

It seems that they were grossly over-priced and that corruption was widespread in the award of these contracts.

Issued by Jack Bloom, DA Gauteng Shadow Health MEC, 30 March 2016