IFP KZN hopeful after arrests in fruitless Health Department mobile clinic tender

The IFP in KwaZulu-Natal says there is light at the end of the tunnel regarding the KZN mobile clinic tender. This was after Dr Sibongile Zungu, 60, a former KwaZulu-Natal Department of Health (head of department) and Sifiso Mtshali, 53, appeared briefly in the Durban Specialised Commercial Crimes Court last Tuesday on charges of fraud and contravention of the Public Finance Management Act. Picture: African News Agency (ANA) Archives

The IFP in KwaZulu-Natal says there is light at the end of the tunnel regarding the KZN mobile clinic tender. This was after Dr Sibongile Zungu, 60, a former KwaZulu-Natal Department of Health (head of department) and Sifiso Mtshali, 53, appeared briefly in the Durban Specialised Commercial Crimes Court last Tuesday on charges of fraud and contravention of the Public Finance Management Act. Picture: African News Agency (ANA) Archives

Published Jun 5, 2023

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Durban — The IFP in KwaZulu-Natal says there is light at the end of the tunnel on the KZN mobile clinic tender.

The IFP was reacting after Dr Sibongile Zungu, 60, a former KwaZulu-Natal Department of Health (head of department) and Sifiso Mtshali, 53, appeared briefly in the Durban Specialised Commercial Crimes Court last Tuesday on charges of fraud and contravention of the Public Finance Management Act.

KwaZulu-Natal Hawks spokesperson Lieutenant-Colonel Simphiwe Mhlongo said that it is alleged that in 2013, the KZN Department of Health awarded a 36-month lease to Mzansi Life-Care for the hiring of a mobile clinic. The contract was further extended without following the supply chain management process. In 2016, the department awarded Mzansi Life-Care a contract for the outright purchase of four mobile clinics to the value of R32 million without following any supply chain management process. The vehicles were registered under Mzansi Life-Care instead of the department.

Mhlongo said that the roadworthy certificates were not obtained by the department and the vehicles were parked off for three years. It is alleged that Mzansi Life-Care director, Nandi Msimang, fraudulently removed the four mobile clinics and sold them, as a result, the department suffered a loss of R32 million.

“A warrant of arrest has been issued for (Nandi) Msimang and the Hawks are looking for her in connection with this case,” Mhlongo said.

Zungu and Mtshali were released on warning and the case was postponed to August 4, 2023.

IFP KZN spokesperson on health Ncamisile Nkwanyana said the IFP believes that there is light at the end of the tunnel on the R61 million KZN mobile clinic tender after Zungu and Mtshali appeared in court.

“As the IFP we believe that in the end justice will prevail on this matter. It is an undisputed fact that the wheels of justice turn slowly, but grind exceedingly fine,” Nkwanyana said.

She said that in 2015 they wrote to previous Public Protector Advocate Thuli Madonsela to launch an investigation into the controversial R61 million tender that saw the KZN Health Department lease a mobile clinic unit for R52.5 million after former KZN Health Department head, Dr Sibongile Zungu signed off on the lease in August 2013, agreeing that the department would pay Mzansi Lifecare R1.5 million every month until August 2017 to lease the vehicle without staff. The tender for four mobile clinics in KZN ended up costing taxpayers a whooping R61 million for units that were never delivered.

Nkwanyana said that in her investigation report, suspended Public Protector Advocate Busisiwe Mkhwebane stated the following:

  • That the process followed by the department to both lease and purchase the mobile units was improper and not in accordance with a system that is fair, transparent, competitive and cost-effective in terms of Section 217 of the Constitution, and amounts to maladministration in terms of Section 6(4) of the Public Protector Act.
  • The expenditure incurred for both the purchase and the lease of the mobile units amount to fruitless and wasteful expenditure in terms of Section 1 of the PFMA to an amount of R32 million, and maladministration as contemplated by section 6(4) of the Public Protector Act, 1994.
  • The HOD as the Accounting Officer at the time failed to act in accordance with the requirements of Section 57 of the PFMA and National Treasury Regulations 8.1, 8.2 and 16A3.2 resulting in improper conduct and terms of section 6(4) of the Public Protector Act, 1994.
  • The CFO and the HOD failed to ensure that the payments made to Mzansi Life Care for both the lease and the purchase of the mobile units were approved and processed accordingly in line with the responsibilities entrusted to them in terms of Sections 38 and 37 of the PFMA.

“As the IFP we therefore call upon the KZN MEC of Health, Nomagugu Simelane to tell the public how far the process of implementing all the remedial action raised in the Public Protector’s report such as taking disciplinary action against the officials of the Department of Health in respect of their conduct,” Nkwanyana said.

“The MEC should ensure that the HOD through the Provincial Treasury takes necessary steps to recover the expenditure incurred by the department as a result of fruitless and wasteful expenditure for the ‘purchased mobile units’.”

Nkwanyana added: “We reiterate our call that former KZN HOD of Health Dr Sibongile Zungu and her accomplices must be held accountable and she must pay back the incurred amount to this wasteful expenditure from their own pocket. Above that Mzansi Life Care must also pay back the money as they improperly benefited. Public funds must not be used to pay penalties for corrupt activities committed by some government officials.”

Nkwanyana said the IFP is against the abuse of public funds. Anyone at the KZN Department of Health who is found to be involved and benefited unlawfully in the irregular award of the R61 million mobile clinic tender must be arrested and face the consequences of their action. People who abuse public funds must be dealt with accordingly. Government officials who strive in disregarding the supply chain process in the awarding of tenders must be punished severely.

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