The Directorate for Priority Crime Investigation says nine suspects including former Gauteng Health Department senior officials are facing charges of fraud, corruption, money laundering and racketeering.
Eight suspects handed themselves over to the Johannesburg Central Police Station and are expected to appear in the city’s magistrate’s court soon.
The ninth is said to be out of the country and the process of applying for his extradition is in progress.
Hawks spokesperson Nomthandazo Mbambo says this forms part of the second leg of an investigation into allegations of gross irregularities in the department between 2006 and 2010.
“The case was referred to the Hawks Serious Corruption Investigation unit by the Special Investigation Unit in September 2011 for further criminal investigation. The case was referred to the Hawks Serious Corruption Investigation unit by the Special Investigation Unit in September 2011 for further criminal investigation. The department awarded several contracts to an entity or juristic person which was initially meant for a period of two years, at a cost of R68 million (incl. VAT) per annum. However, this amount was allegedly overspent to the tune of R221 million without any consequences to the individuals involved.”
Hawks arrest 10 service providers from KwaZulu-Natal, Eastern Cape on fraud, corruption allegations:
Former senior official arrested for fraud in Eastern Cape: Hawks
In November, the Hawks have arrested another former senior official from the King Sabatha Dalindyebo Local Municipality in the Eastern Cape in connection with a tender to refurbish roads in Butterworth.
Zanemvula Ngovela is charged with an alleged contravention of the Municipal Finance Management Act. This relates to a multi-million rand road construction project dating back to 2011 in the Mnquma Local Municipality. The project was meant to cost R18 million, but due to interference by the officials, it doubled to R36 million.
This is the second arrest in one month in connection with the multi-million and road construction project. Two other suspects are the sole directors of a company that was awarded the tender to construct roads in Butterworth townships.
The trio, Zanemvula Ngovela, Soundrarajan Pillay, and Kubeshin Pillay, were charged at the Central Police Station in Mthatha.
The Hawks Provincial Spokesperson Yolisa Mgolodela says the crimes were committed while Ngovela worked at the Mnquma Local Municipality in 2011.