ANC heavyweight in R1.4bn corruption scandal

2014-07-27 09:13

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - ANC chief whip in the Gauteng Legislature Brian Hlongwa could face multiple charges of corruption and money laundering relating to two tenders worth over R1.4bn that were awarded during his tenure as the province’s MEC for Health.

According to the Sunday Independent, Hlongwa is suspected of being the central figure in a tender scandal that also involves other senior officials.

Allegations have also been made that the ANC in Gauteng benefited through kickbacks relating to the two tenders.

The tenders were issued in 2007 to 3P Consulting and Baoki Consortium. 3P was initially paid R120m to set up a project management unit for the department but ended up earning R392m by the time their contract was cancelled in 2009 when Health MEC Qedani Mahlangu took over from Hlongwa.

Baoki meanwhile was awarded a R1.2bn tender to set up a health information system and electronic health record. It was paid over R400m and by the time its contract was cancelled a year later, no system had been installed.

The department has since been embroiled in legal battles with both companies over the cancelled contracts as both firms are demanding the balance of payment be made to them.

However, last week the National Prosecuting Authority asked the South Gauteng High Court to place preservation orders on any claims filed by the two companies.

The NPA’s court action is the culmination of four years of investigations by the Special Investigating Unit and the Hawks.

A source close to the investigation said that criminal charges could be brought against individuals. It is believed that Hlongwa is top of the list.


On Friday, the NPA announced that over R1bn in contract claims upon the Gauteng health department had been seized.

"The freezing order of R1.4bn is the biggest ever obtained by the NPA asset forfeiture unit (AFU)," spokesperson Nathi Mncube said in a statement.

The seizures were related to two tenders awarded by the department in 2007. The first tender was for the setting up of a project management unit (PMU).

"The tender was fraudulently rigged in favour of 3P Consulting and 3P was a party to the rigging," Mncube said.

He said 3P's CEO Richard Payne was a friend of Hlongwa and that 3P allegedly awarded contracts to friends and family, defrauding the department of R35m in the process, and allegedly provided Hlongwa R3m in cash, Mncube said.

One of the contracts awarded by the PMU was to Regiments Healthcare, with the company's CEO being Niven Pillay, Mncube said.

In January 2008, Payne, Hlongwa, plus 3P employees and department officials went on a holiday in Cuba paid for by 3P.

The second tender was for a health information system and electronic health records (HIS-eHR). It was awarded to Baoki Consortium, who were party to the tender being rigged.

The CEO of one of the Baoki companies was Heinz Smidek.

During 2007 to 2008, Payne paid a R3.3m deposit for a house for Hlongwa at 163 Eccleston Crescent, Bryanston, with the purchase price being R7.2m.

"The balance was to be made up by the sale of Mr Hlongwa's house at 26A College Drive, Bryanston," Mncube said.

Smidek allegedly arranged the purchase of the College Drive house for R4.6m by a Cypriot company registered in South Africa, Kemsing Services.
Both houses were refurbished by a company controlled by Payne, with the refurbishment paid for by 3P, Payne and Pillay.
Read more on:    anc  |  brian hlongwa  |  pretoria  |  johannesburg  |  local government

Read News24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Inside News24


Printable solar panels will bring exciting new opportunities!

Printed sheets of flexible solar cells can mean your electronic devices can soon be charged with the use of renewable energy.


For chic geeks...

Now there’s a special lane for texting while walking
LOL! 7 brutally honest texts from parents
This lock means keys are something of the past!
7 things you didn't know about Apple

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now! - shop online today

Pre-order your iPhone 6 at

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25


As the Moon moves out of restless Gemini into sensitive Cancer today you are able to relax your active mind and be more more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.