ADDITIONAL ACCUSED APPEAR IN KIMBERLEY MENTAL HOSPITAL CORRUPTION CASE

ADDITIONAL ACCUSED APPEAR IN KIMBERLEY MENTAL HOSPITAL CORRUPTION CASE

Six additional accused namely, Lourencia Crause, Louis Adriaan Van Niekerk, Monyahi Winston Modisa, Edward Charles Pullen Petzer, Motlalepula Elias Selemela and Ruth Palm have made their first appearance in the Kimberley Magistrates’ Court in connection with the Kimberley Mental Hospital case. The accused face charges ranging from fraud, corruption, money laundering, and contraventions of the Public Finance Management Act (PFMA), Act 1 of 1999.
The charges are being brought in terms of Section 75(1)(c) of the Criminal Procedure Act, Act 51 of 1977. The matter relates to the construction of the Kimberley Mental Hospital, which began in 2005 and saw its original R297 million budget escalate to more than R1 billion due to delays, poor workmanship, and repeated changes in contractors.

In August 2005, the then Head of Department (HOD) for the Department of Roads, Transport and Public Works, Motlalepula Elias Selemela, awarded the construction contract to Vista Park/Joh Arch Investments. Irregularities were identified on the project and that contributed to massive cost overruns.
Selemela and Ruth Palm, also a former HOD in the department, are facing multiple charges for contraventions of the PFMA:
• Mr. Selemela faces 26 counts involving unlawful payments totalling over R15.2 million.
• Ms. Palm faces 24 counts, involving irregular payments amounting to R39.4 million.
• Both are also charged for failing to recover penalties of approximately R11.3 million from service providers who breached contract terms.

The four co-accused Crause, Van Niekerk, Modisa, and Petzer were directors of Strabismis Trading (Pty) Ltd and Babereki Consulting Engineers (Pty) Ltd. They are charged in both their personal and fiduciary capacities for their role in facilitating payments of over R51 million to entities that had no valid contracts with the department. These payments, the State alleges, were made with full knowledge that the funds were not lawfully due.

The charges stem from the appointment of Babereki Consulting Engineers on 8 October 2003 to provide civil and structural engineering services for the proposed psychiatric hospital.

These developments form part of a broader investigation into public corruption and mismanagement.
The newly charged individuals form part of the previously charged accused, including former HOD Ms. Patience Mokhali, former MEC John Block, company Babereki Consulting Engineers, and company director Tshegolekae Motaung, who are currently out on bail following their appearance in 2023.

Bail was granted to the six accused as follows: Lourencia Crause was granted bail of R2,000; Louis Adriaan Van Niekerk, Monyahi Winston Modisa, and Ruth Palm were each granted bail of R10,000; and Motlalepula Elias Selemela was granted bail of R5,000. The case has been postponed to 2 June 2025, when the accused are expected to join their co-accused in the Kimberley District Court.

The National Prosecuting Authority remains committed to ensuring accountability and upholding the rule of law in matters involving public funds and service delivery.