R126M GAUTENG HOPITAL SECURITY CONTRACTS EXTENDED WITHOUT TENDER

The Gauteng Health Department has renewed 30 hospital security contracts that total R126 million a year without going out to tender.

This highly disturbing information is revealed by Gauteng Health MEC Hope Papo in a written reply to my questions in the Gauteng Provincial Legislature.

The original three year contracts have expired, but according to Papo "an approval for an extension was granted through the Departmental Acquisition Council (DAC).... The extension was to enable the Department to normalise the management of security contracts through a process of security risk assessment, drafting of security specifications and Service Level Agreements per hospital".

In my view, we are grossly over-paying on these security contracts, and better value contracts should have been negotiated.

At Chris Hani Baragwanath Hospital the R37.5 million three-year contract expired in June last year, but it was extended despite complaints about the poor security there, including patients and staff being assaulted.

The R17 million a year contract at Charlotte Maxeke Johannesburg Academic Hospital was also extended in June last year after it had expired, as was the R10.3 million a year contract at the George Mukhari Hospital.

The Gauteng Health Department has huge budget problems but missed the chance to get better security contracts at a lower price.

I suspect corruption in these contracts, and they are already being investigated by the Special Investigation Unit.

Gauteng Health MEC Hope Papo should ensure new security contracts as soon as possible awarded on a fair and transparent basis to get best value for money.

Statement issued by Jack Bloom MPL, DA Gauteng Health Spokesman, September 19 2012

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