7 years to probe Trillian-linked Gauteng Health corruption 

9 October 2017

Investigation into corruption at the Gauteng Health Department is still continuing for more than seven years, including the alleged role of Niven Pillay, the Executive Director of Regiments Capital who is embroiled in controversy over his dealings with Trillian and the Guptas.

According to a written reply by Gauteng Community Safety MEC Sizakele Nkosi-Malobane to my questions in the Gauteng Legislature, the auditing firm Gobodo is finalizing the forensic report, but there is information outstanding from the Gauteng Legislature and they have identified further transactions that need to be followed up with banks.

I am disappointed that this investigation is taking so long as the Special Investigating Unit was given the mandate by a Presidential Proclamation on 14 May 2010. 

The alleged corruption involves more than R2 billion that occurred when Brian Hlongwa was Health MEC - he is presently the ANC Chief Whip in the Legislature despite an asset forfeiture application against him for a house he bought in Bryanston for R7.2 million allegedly from the proceeds of crime.

Court documents show alleged corruption of Hlongwa and officials of the Gauteng Health Department (GHD) in relation to contracts between the GHD and 3P Consulting, certain subcontractors to 3P, Regiments Healthcare and the Baoki consortium.

Niven Pillay of Regiments Capital, which owns Regiments Healthcare, is alleged to have got a contract for R3.5 million from GHD that was worth only R680 000, and to have paid Hlongwa a total of R1.7 million to assist him to buy the Bryanston house.

Richard Payne, the Managing Director of 3P, is also alleged to have paid R1.6 million to Hlongwa to buy the house. According to evidence submitted in court by the National Director of Public Prosecutions (NDPP),there was "an apparent and generally corrupt relationship between Hlongwa and Payne".

There are other benefits that Hlongwa is alleged to have received that he did not declare to the Legislature, including a trip to the Durban July Handicap for himself and his wife in 2008, with two nights at the Beverley Hills Hotel, paid for by Regiments.

I am greatly concerned that there has been no accountability after all these years because of an inordinately slow investigation.

I hope that there has not been political interference to delay this case by extending the investigation as it should have gone to court when the forensic auditors report of the Anti Corruption Task Team (ACTT) was finalised in March 2014.

It is not at all clear why another investigation was then commissioned to be done by Gobodo at a cost of R3.6 million.

The current crisis in the Gauteng Health Department can largely be traced back to Hlongwa's disastrous tenure as Health MEC when managerial controls were battered and service delivery suffered.

The ANC in Gauteng tries to dissociate itself from Zuma and Gupta-related corruption, but has taken no action against Hlongwa despite the well-documented evidence against him.

It was reported on 28 July 2014 that the allegations against Hlongwa were referred to the ANC’s provincial integrity committee.

We need to know what decision they have taken in this matter bearing in mind the ANC’s 2012 Policy Conference proposal that all deployed ANC members in government step down immediately when accused of misconduct or incompetence. David Makhura, who is now Premier, was quoted then as saying that stepping aside doesn't mean a person is guilty, but the idea is that no-one will be able to "hide behind" the argument that they are innocent until proven guilty, and thereby worsen the "troubled image" of the party.

I challenge the ANC to justify their retention of Hlongwa as Chief Whip as the corruption evidence mounts against him and the Gauteng Health Department continues to struggle with the mess he left behind.

Issued by Jack Bloom, DA Gauteng Shadow Health MEC, 9 October 2017