Gauteng Health has denied claims that corruption-accused former CFO Lerato Madyo was paid to leave her role and given a “golden handshake” as alleged by DA health spokesperson Jack Bloom this week.
The Citizen reports that Bloom claimed Madyo was “given a very lucrative settlement and is currently living under another name in Limpopo”.
The department had announced Madyo’s resignation in August 2024, but Bloom disputed the claim yesterday.
“My information says that she is in Limpopo. We have the new name that she goes under, and she left with a golden handshake, with no record and in good standing,” he said.
The department said it had simply terminated her contract.
A ‘termination agreement’
Madyo faced disciplinary charges related to alleged corruption worth billions at Tembisa Hospital, flagged by murdered whistle-blower Babita Deokaran.
The department had initiated an investigation into the matter but said that “evidentiary constraints affected the process’ viability”, and that “the department and Ms Madyo subsequently entered into a termination agreement to bring the employment relationship to an end”.
“It is important to clarify that this agreement was concluded in line with applicable labour relations frameworks and was not a ‘golden handshake’,” it said yesterday.
“Any pension benefits payable arise from the rules of the Government Employees Pension Fund, which operates independently and in terms of statutory provisions,” it added.
Bloom alleged that the settlement was authorised by Premier Panyaza Lesufi’s office, but the Premier denied this.
“The Department of Health did engage the Office of the Premier after the agreement had been finalised, notifying the Premier of the outcome and requesting retrospective concurrence. The Premier declined to grant this retrospective approval, citing the lack of consultation or prior involvement of his office,” the provincial government said.
It insisted that Lesufi was not part of the “negotiations and decision-making that led to the settlement”.
“Premier Lesufi dismisses any insinuation that he was part of the arrangements to release the pension payout.”
Lesufi said an independent legal firm has been appointed to investigate the matter and “determine whether the agreement was handled correctly and to advise on any further action required”.
The DA laid criminal charges against Madyo on 16 October last year for failing to act on Deokaran’s warnings.
No termination
Bloom claimed the department had not entered into a termination agreement but rather a settlement, accusing Gauteng Health of lying and covering up “a hush money payoff to the person who disregarded Babita’s appeal to investigate suspicious Tembisa contracts worth R850m”.
He said Madyo was allegedly paid “R3m while suspended with pay for two years as the department dragged out her disciplinary enquiry on 13 misconduct charges”.
“Instead of concluding this enquiry… she left with her pension and an undisclosed settlement amount,” he alleged.
The department said the interim reports from SIU into Tembisa Hospital contracts did not list Madyo among the officials recommended for disciplinary or criminal action.
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