Suspended Acting Gauteng Health HoD Lesiba Malotana received more than R1.6m in questionable ATM cash deposits, suspected to be linked to the R1.8bn looting at Tembisa Hospital, a Special Investigating Unit (SIU) probe found.
The report described him as a “high risk” individual and requested a special proclamation for a deeper forensic probe into his finances.
The Sunday Times reports that the contents of the report into Malotana, who was suspended two weeks ago by Gauteng Premier Panyaza Lesufi after he had received the document as part of a widescale lifestyle audit of the provincial government’s senior officials, have only now been exposed.
According to the report, attached as an annexure to a letter from Malotana’s lawyers to Lesufi, challenging his suspension, the SIU found he had received R1.6m in cash transactions over three years.
It also raised concerns about his six dubious bank accounts, some of which were not disclosed to the department. It is into these accounts that cash deposits – some as large as R300 000 – were made, at ATMs across Gauteng.
According to the SIU, Malotana said these were linked to his “egg farming business” in Limpopo, but he could not explain why the deposits were all made in Gauteng.
The SIU is looking into whether Malotana is doing business with the Tembisa and Pholosong hospitals as a possible supplier of eggs, or other business.
The report found R1 627 300 in cash deposits were traced to bank accounts from commercial activities that could not be reconciled with Malotana’s salary.
“There were unexplained transactions amounting to … R19 900 and outgoing payments of R47 943 between Pulse Management Consultants and Cedmas Funeral Services, who (are) linked to KGDEE Mash (Pty) Ltd,” the report says.
“It was established that KGDEE Mash is an active contracted service provider to Tembisa and Pholosong Hospitals.”
On Friday, Malotana said he was challenging his suspension in the High Court and that the matter would be heard on 3 November.
The SIU also questioned Malotana’s Limpopo livestock business, which it found to be operating “informally” as there was no signed lease for the property on which it was operating. This posed a compliance risk for Malotana and the department, it said.
Another red flag was a R300 000 transaction that Malotana claimed was a loan, but for which he could not provide documentation: the SIU added that he had disclosed only four bank accounts, however, he had now been linked to six.
“Inward and outward transfers amounting to R201 306.26 during the review period were identified…but these cross-border transactions were not disclosed during the lifestyle audit phase.”
He had also failed to disclose income-generating assets for two properties.
Sunday Times PressReader article – Egg on face for Gauteng hospitals chief (Restricted access)
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Gauteng Health boss first casualty in Tembisa fraud crackdown
Unions demand lifestyle audits for all Tembisa staff
Uncovering the 200 suspicious Tembisa Hospital contracts flagged by Deokaran