Despite charges of fraud and contravention of the Public Finance Management Act related to a dodgy R470m contract, the head of North West Department of Health is still at his desk – almost a year later.
Obakeng Mongale, in his previous post as head of the provincial Department of Public Works, had awarded the contract to a joint venture that was in liquidation, reports TimesLIVE.
The job on the Brits District Hospital was given to Ilima Projects-Tsoga Developers in 2008, but cancelled two years later due to shoddy workmanship, with another company having to finish the work for an additional R4m.
Mongale, who was appointed HoD in April 2021, is also at the centre of a separate legal imbroglio: Bagale Consulting is suing the Department for R36m in the North West High Court (Mahikeng) over a disputed hospital contract Mongale awarded the company while he was still at Public Works.
Bagale Consulting, which is demanding payment of outstanding professional fees, said it was appointed in 2008 as project manager for the planning, commissioning and construction of Lichtenburg Hospital, which was to replace the ageing General De la Rey Memorial Hospital and to also serve patients from the decommissioned Thusong Hospital about 30km away.
However, in 2022 the department appointed MIB Infrastructure Development to do the same job for R27.7m. The only difference between the two contracts was that Bagale’s terms stipulated 150 beds in the new facility, whereas MIB’s was for 120 beds.
In October last year, Bagale director Dennis Modipa said in a letter to the Department of Health: “The fact that Bagale Consulting is still in possession of the site means that the department cannot engage any other service provider to render any construction-related services to upgrade or do additions to the existing hospital while Bagale’s contract and appointment has not been cancelled or terminated …
“We wish to remind the department that our team has had dedicated resources allocated to our project and keeps incurring costs by paying salaries to our professional staff,” said the letter, which is among papers filed in the court case.
“These costs would obviously be factored in to be recovered as part of the formula calculating termination costs.”
According to Bagale’s court papers, the provincial government paid it about R30m for architectural designs and for securing the site, but stopped communicating about the project in 2016.
The project was transferred from Public Works to the Health Department in February 2010 and approved by Mongale’s predecessor, Lydia Sebego.
Sebego is also facing two charges of contravening the PFMA. She is on R10 000 bail and charged with corruption in the awarding of an R86m tender for the construction of the Moses Kotane and Joe Morolong Hospitals.
Mongale said the department could not comment on the Bagale litigation because it was now “sub judice”.
The Sunday Times understands that North West Health MEC Sello Lehari, appointed in July, has been briefed on the case and that meetings were held with Modipa to explore a possible out-of-court settlement.
“The MEC is careful not to be quick to take action on cases that are still in the courts. Both the Bagale matter and Mr Mongale’s prosecution are therefore sub judice… the department is unable to comment further until they are finalised,” said a statement from Lehari’s office.
However, the State Attorney’s office has written to Modipa to ask him to propose a settlement figure.
The letter to Modipa’s lawyers asked that he “disclose to us the amount your client will claim should the contract be terminated with costs”.
In 2016, the estimated costs to build the hospital were about R249m, but in December 2021 former Health Minister Joe Phaahla said in reply to a question in Parliament that the project would cost at least R1.3bn.
Criminal case
The criminal charges facing Mongale relate to a payment of R57m he allegedly authorised for the Ilima-Tsoga joint venture.
Separate corruption charges have been brought against Andrew Lekalakala, a former head of the North West Health Department, in connection with a contract for mobile clinics awarded to Mediosa Health, a Gupta-linked company, which received an upfront payment of R30m.
Lekalakala is alleged to have received a trip to India as a reward.
Sivenathi Gunya, spokesperson for the National Prosecuting Authority, said Lekalakala, who is out on bail of R5 000, would be back in court on 1 December.
TimesLIVE PressReader article – NW health boss still at his desk despite criminal case (Open access)
See more from MedicalBrief archives:
Corruption allegations linked to North West hospital tender
North West Health HoD gets bail in alleged corrupt tender case
AG warns urgent intervention needed to prevent provincial health collapse