Gauteng Health won’t blacklist non-compliant companies

5 December 2022

The Gauteng Health Department will not blacklist the 12 non-compliant companies that got R381 million contracts from Gauteng hospitals in the last three years.

I asked Gauteng Health MEC Nomantu Nkomo-Ralehoko whether her department would blacklist these companies, and she responded in a written reply:

“A company can only be prevented from doing business with the Department if the matter has been investigated and if the investigation report recommend that the company must be prevented from doing business with the Department.”

The 12 companies are linked to Mr Hangwani Morgan Maumela, a nephew by marriage to President Cyril Ramaphosa. In her previous reply, Nkomo-Ralehoko said “none of the listed companies have SA Health Products Regulatory Authority (SAHPRA) approval for the sale of medical products”, and she blamed “inadequate processes and oversight.”

The companies got R36 million from Tembisa Hospital last year, amongst many payments that murdered Babita Deokaran identified as “possibly fraudulent”.

Maumela has been identified as a central figure in the Tembisa Hospital purchases that Babita flagged, and he is reported to have ties with Bejani Chauke, who is President Cyril Ramaphosa’s chief political advisor.

My view is we don’t need to wait for the conclusion of a lengthy investigation as it is already admitted that the companies were not compliant in various ways and should not have got the contracts.

A quick scrutiny shows outrageous overcharging e.g. Tembisa Hospital paid R456 960 for 50 stainless steel kidney dishes. This amounts to more than R9000 a dish!

Another example is 50 flat-bottomed round bowls bought for R496 555.

This price gouging should surely disqualify companies from any further contracts.

Hospital patients suffer most when huge amounts of money are wasted on fishy companies that grossly inflate the prices of goods.

I will continue to press for a freeze on all new contracts with non-compliant companies that charge ripoff prices

Issued by Jack Bloom, DA Gauteng Shadow MEC for Health, 5 December 2022