Why did Gauteng Health MEC not fire 18 security companies after forensic findings?
11 May 2016
No action has yet been taken against 18 security companies contracted to guard hospitals despite a forensic investigation in July 2015 by the Gauteng Health Department that recommended they be disqualified because of irregularities in the award of the contracts.
This was revealed yesterday when Gauteng Health MEC Qedani Mahlangu gave an oral reply to my questions in the Gauteng Legislature.
Mahlangu said that the forensic investigation found that contracts were awarded irregularly as a consequence of a procurement process that was flawed, unlawful and in violation of the Constitution, Treasury regulations and the Public Finance Management Act.
Four security companies were terminated and steps were being taken to recover R32 million paid to these companies.
But Mahlangu named a further 18 companies that were still guarding hospitals despite the finding by the forensic investigation that they should be disqualified.
She said that one company was forced to pay money to get a contract and blew the whistle, which had led to criminal charges against four senior officials. The department was now verifying whether the 18 companies were implicated in this process before action was taken against them.
I am astonished that nearly a year after the forensic investigation made adverse findings against these 18 companies they are still being paid millions of rand to guard hospitals.
This slow action does not show a commitment to fight corruption and recover money paid to companies that got contracts irregularly.
Criminal charges should also be laid against the companies as corruption involves two parties, a briber and a bribee.
When I pressed her on this, Mahlangu said that the department was dealing with the process and criminal charges could be laid.
This is not good enough. There is good reason to suspect that all the hospital security contracts awarded in September 2014 that totaled R265 million were grossly over-priced and should have been terminated long ago.
Speedy action is needed to charge all guilty parties and ensure that there is real value for money in hospital security contracts.
Issued by Jack Bloom, DA Gauteng Shadow Minister for Health, 11 May 2016
