Former KwaZulu-Natal Health MEC Peggy Nkonyeni (64) appeared in the KwaZulu-Natal High Court (Pietermaritzburg) last week facing fraud and corruption charges linked to hospital procurement contracts worth more than R100m, reports the Sunday Tribune.
She has been accused of involvement in deals linked to water purification units (Watakas), and self-generating oxygen units – Oxyntakas – for hospitals across the province, through contracts awarded to Intaka Holdings, owned by Uruguayan businessman Gaston Savoi.
NPA regional spokesperson Natasha Ramkisson-Kara said procurement processes were allegedly manipulated, enabling Intaka Holdings to benefit by more than R100m.
Nkonyeni and co-accused Lindelihle Mkhwanazi were formally added to the charge sheet, the other accused being Busisiwe Nyembezi, Victor Ntshangase, Alson Sipho Buthelezi, Sandile Kuboni, Kuboni Shezi Incorporated, and Rowmoor Investments 738 (Pty) Ltd.
Between August 2006 and November 2007, Nkonyeni, Mkhwanazi and Rowmoor Investments are alleged to have agreed to accept two payments of R500 000 from Intaka Holdings, to” improperly influence the promotion, execution and procurement of contracts” for the supply of two water purification units to the hospitals.
The matter was postponed to 11 June so Mkhwanazi could confirm legal representation and for him and the former MEC to receive statements from the state.
All accused are expected to return to court on 23 July for a pre-trial conference.
The case follows Savoi’s conviction in September 2024, when he pleaded guilty in the High Court to four counts of fraud and six counts of corruption committed in KZN and the Northern Cape between 2004 and 2007.
His case was finalised through a plea and sentence agreement under Section 105A of the Criminal Procedure Act. Savoi was ordered to pay a R5m fine or face 10 years in prison, in addition to a further 10-year prison sentence suspended for five years.
The court also granted a confiscation order of R60m in favour of the state, ordering Savoi to cough up R15m towards costs arising from curatorship proceedings linked to an Asset Forfeiture Unit restraint application.
See more from MedicalBrief archives:
Controversial acting DG for Health steps aside for new man
New director-general of Health Department has a controversial past