FRAUD CASE AGAINST FORMER HEALTH HOD COMMENCE AT THE HIGH COURT
The High Court of South Africa; North West Division rolled over the fraud case against the former head of the Department of Health in the North West, Dr Andrew Lekalakala to 08 August 2023. The matter commenced with Lekalakala’s attorney cross-examining a state witness, who worked for the National Department of Health at the time the fraud allegedly occurred. Lekalakala is facing two charges of fraud, one of contravening the Public Finance Management Act (PFMA) and another, in terms of the Prevention and Combating of Corrupt Activities Act (PRECCA). The charges relate to the alleged fraudulent awarding of a contract for mobile clinics to Mediosa Health Pty (Ltd) in February 2017, a company linked to the Gupta family. The mobile clinics were meant to service rural communities in the North West.
A similar project was already being implemented in the Free State province and Lekalakala, as the then accounting officer, allegedly decided to participate in the same contract and elected to apply the Treasury Regulations that allow for participation in an existing contract arranged by another organ of state, with the same contract terms. It was however discovered that the awarding of this contract did not comply with Treasury Regulations and the project was not budgeted for. The accused also falsely indicated during a management meeting that the service by Mediosa Health was a National Department of Health initiative that would be rolled out to other provinces. He further lied that there was compliance with the Treasury Regulations.
Mediosa Health allegedly received an upfront payment of R30 million and Lekalakala, is alleged to have received gratification in a form of a trip to India, accompanied by his spouse and his associates. The state also intends to prove that the service level agreement was signed on this trip and not at the Department of Health offices. The state is expected to call on more witnesses when the trial commences throughout the week. Meanwhile, Lekalakala is still out on R5000 bail, and it was extended until his next court appearance.
