A logistics manager at a company subcontracted to supply medical equipment to Inkosi Albert Luthuli Central Hospital in Durban has been sentenced to eight years behind bars for fraud, corruption, and money laundering valued at more than R5.7m.
Rakesh Maharaj (44) pleaded guilty to the three charges and was sentenced by the Durban Specialised Commercial Crimes Court.
News24 reports that he had been employed as a manager at Consulens Medical Healthcare Solutions, which was subcontracted within the Department of Health in KwaZulu-Natal. The company provided installation, service, maintenance and replacement of medical equipment and devices.
Maharaj was responsible for authorising the replenishment of stock supplied by external service providers.
Between January 2015 and August 2017, working in cahoots with other staff within Consulens and employees from external service providers, he manipulated the stock accounting system to falsely indicate that supplies needed replenishing.
He then facilitated the approval and payment of the fictitious invoices furnished by these service providers. Once they had been paid by Consulens, Maharaj received a portion of the funds for his role
After Consulens received information from a whistleblower, it launched an internal forensic investigation into allegations of fraud, fictitious invoicing, corruption, and money laundering.
The Hawks then pursued a criminal investigation, leading to the arrest of Maharaj as well as well the other members of the syndicate.
Maharaj was sentenced to 10 years' imprisonment for fraud (two years suspended for three years with conditions), 10 years’ imprisonment for corruption (two years suspended for three years with conditions), and five years’ imprisonment for money laundering (wholly suspended for three years with conditions).
The sentences were ordered to run concurrently, resulting in an effective sentence of eight years of direct imprisonment.
His pension of R639 000 (after tax) was also retained and will be forfeited to Consulens.
The case against Maharaj’s co-accused returns to court at the end of October.
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