News24 | UPDATE | Gauteng health dept head suspended amid SIU probe into Tembisa Hospital graft

The head of the Gauteng Department of Health and Wellness, Lesiba Arnold Malotana, has been placed on suspension with immediate effect.

The head of the Gauteng Department of Health and Wellness, Lesiba Arnold Malotana, has been suspended with immediate effect, amid a special Investigating Unit report into the rampant graft at Tembisa Hospital.

Gauteng Premier Panyaza Lesufi announced the suspension on Tuesday and said that he had appointed Dr Darion Barclay as the acting head of the department.

Lesufi did not give reasons for the suspension.

However, in a statement, he said: “The Gauteng provincial government reaffirms its full support for the work of the Special Investigating Unit (SIU) and other law enforcement agencies. We remain steadfast in our commitment to root out maladministration and to uphold the highest standards of accountability and ethical leadership.”

According to City Press, there had been calls for Lesufi to remove Malotana from his position following the SIU’s decision to probe two questionable contracts within the department, in which Malotana is implicated.

READ | Deokaran family ‘absolutely not on board’ with Tembisa Hospital renaming proposal

The contracts under investigation involve the supply and delivery of three-division plastic containers with lids, small tubs with lids, dual-surface polyester film, orthopaedic implants, fracture treatment, and arthroscopy items.

AmaBhungane previously reported that a whistleblower had accused Malotana and two senior officials of manipulating supply chain processes to ensure that the medical devices company BAS Medxpress (BAS Med) received two tenders in 2016 and 2017. At the time, Malotana was the chief director of the Special Projects Directorate and the CEO of Gauteng Emergency Medical Services.

The whistleblower alleged that Malotana and the two other officials received a kickback exceeding R8 million for their supposed assistance in securing a tender. Another alleged kickback of R3 million was paid when BAS Med was chosen to supply orthopaedic equipment to Gauteng hospitals.

The suspension also follows the release of the SIU’s interim report into rampant graft at Tembisa Hospital. The report revealed that nine syndicates had taken root at the facility, extracting R2 billion over two years.

READ | SIU finds R2bn was extracted from Tembisa Hospital

The SIU also found that kickbacks worth R122 million were secretly channelled to corrupt officials from the Gauteng Department of Health, to enable the looting.

The networks were first flagged by Babita Deokaran, 19 days before she was killed, and then exposed by News24 in an investigative series titled “Silenced”.

The SIU identified 15 former and current department employees engaged in money laundering, corruption, collusion and bid rigging. It has prepared 116 disciplinary referrals against 13 officials, of which 108 were delivered to the provincial health department against 13 officials relating to the irregular appointment of service providers at Tembisa Hospital.