Corruption costs E Cape health R45m

2011-03-07 15:12
Johannesburg - Fraud and corruption by officials and service providers have cost the Eastern Cape health department at least R45m in the past few years, it said on Monday.

A recent investigation by PricewaterhouseCoopers revealed that the fraud and corruption was related to contracts and tenders, said department spokesperson Sizwe Kupelo.

"The investigation revealed firstly that there was fraud and corruption totalling R13m for an air ambulance contract," he said.

An amount of R14m meant for the maintenance of medical facilities and new building activities was also lost.

"We also have an amount of R18m related to tender procurement, where at least eight officials would allegedly award tenders to their own companies."

35 companies involved

Kupelo said 35 companies were believed to have profited.

The investigation started last year and involved activities spanning a few financial years.

"All cases have been referred to the police and the officials involved have either been suspended or resigned," he said.

Eastern Cape Health MEC Sicelo Gqobana had also ordered a forensic investigation into the Port Elizabeth medical depot responsible for the distribution of drugs to the province's health facilities.

This, after he was informed of corruption at the depot which led to delays in the distribution of drugs and an overall shortage of medication in hospitals and clinics.

"Courier companies contracted to distribute medication were [reportedly] responsible... as they would collect deliveries or orders from the depot and keep the orders in their own depots," Kupelo said.

"As a result, depot staff were inundated with calls about orders that had already been dispatched," he said.

Kupelo said depot staff alleged that courier companies were delivering drugs meant for other health facilities to hospitals and clinics that had not placed an order.

Facilities that had placed orders would often receive incomplete orders as a result.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
Read more on:    pwc  |  sicelo gqobana  |  health  |  tenders  |  corruption
NEXT ON NEWS24X 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
Comments have been closed for this article.

Inside News24


Rugby World Cup 2015

All the action from the 2015 RWC, including live coverage of all 48 matches, breaking news, fixtures, results, logs - and much more!


Rugby World Cup 2015

Wallabies win, Boks to face Wales
LIVE: England v Uruguay
As it happened: Australia 15-6 Wales
Scots beat Samoa, end Japan's dream
Traffic Alerts

The phrase for today is:”Out of the blue.” Expect the unexpected and work with the changeable energy. Your intuition is 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.