The CEO along with the CFO of South Africa’s National Health Laboratory Service (NHLS) have been suspended by the organisation’s board, pending the outcome of an investigation into allegations of corruption and maladministration.
Business Day reports that this was after trade union Nehawu had blown the whistle on alleged graft at the institution, prompting the NHLS board to commission Grant Thornton to conduct a forensic audit. The audit firm completed its report and submitted it to the NHLS board ahead of a two-day board meeting convened last week. NHLS communications manager Ntokozo Majozi then issued a statement saying the NHLS board had decided to place CEO Joyce Mogale and CFO Sikhumbuzo Zulu on precautionary suspension "to enable further investigation and processes relating to the allegations made against them".
"The suspensions are not a determination of culpability on the part of these executives. The Board will not be issuing further communications on this matter until it is finalised. The Board recognises the stress of these situations and is committed to reaching an outcome as speedily as possible," she is quoted in the report as saying.
The board had appointed National Institute of Communicable Diseases executive director Shabir Mahdi as acting CEO and Ben Wikner as the acting CFO, she added.
The report says the NHLS is a vital part of the public health system as it provides all the blood and tissue tests needed to diagnose and monitor diseases ranging from HIV to cervical cancer. It also offers some highly specialised tests that are not available in the private sector. While the techinical capacity of the NHLS is widely regarded and it provided also gave vital support to West Africa during its recent Ebola crisis, here at home it has confronted a series of crises. These include cash-flow problems due to payment disputes with some of the provinces and protracted wage disputes with Nehawu that threatened to halt the provision of services.
Nehawu spokesperson Khaya Xaba said the allegations against the CEO and CFO related to maladministration and corruption.
The report said Mogale had not responded to a request for comment at the time of going to press but she was quoted last week as saying that the NHLS had an anonymous tip-off line that was independently managed by an audit firm and staff were encouraged to report any form of misconduct. "It is common for the audit and risk committee to recommend further investigation on any allegations received through the … hotline," she said.
[link url="https://www.businesslive.co.za/bd/national/2017-02-27-board-suspends-health-bosses/"]Business Day report[/link]