R200m fraud at E Cape health department

2012-05-15 07:44

East London - A preliminary report by the Special Investigation Unit on a probe into the Eastern Cape health department revealed corruption involving R200m, according to a report on Tuesday.

The investigation, launched in December, found that 15 900 department officials were illegally receiving child support grants totalling R58m per year, the Daily Dispatch reported.

The leaked report also revealed that almost 4 000 officials were illegally receiving housing subsidies from the human settlements department amounting to R86m.

Assets valued around R19m, which were transferred to district offices, apparently went missing.

The health department, which has a long history of fraud and profiteering, reportedly paid R42.8m to 226 companies linked to 235 civil servants, while 174 officials' spouses were linked to companies that benefited R9m.

The report indicated problems faced by investigators included missing supply chain management documents, believed to have been stolen or sold to a recycling plant.

Health department spokesperson Sizwe Kupelo acknowledged the difficulties.

"The department of health is committed to fighting fraud and corruption and anyone accused of such allegations will be pursued, regardless of who they are," he said.

The department lost R800m to corruption between January 2009 and June 2010.

  • Henri - 2012-05-15 07:48

    We must live in the richest country in the world seeing we can throw money like this away, time after time. How many is it this year so far ???

      Marion - 2012-05-15 07:51

      @Zoolie - Sorry, can't help with that question. I ran out of fingers and toes to count the billions sometime early January.

      Trevor - 2012-05-15 08:09

      What's new, I tell you the whole DAMNED ship is sinking

      Ruan - 2012-05-15 08:16

      Make them pay it back!!! all of it!!!!

      Kala - 2012-05-15 08:17

      The ANCs motto - F@#k the poor.

      John - 2012-05-15 08:20

      same old, same old when will we read" civil servant in the EC jailed for 200m fruad and corruption.

      Greg - 2012-05-15 08:22

      Shocking ...and I guarantee each of those found guilty of illegally profiting from govt. grants are still lounging in their chairs at the hospitals this very morning...

      Koos - 2012-05-15 08:23


      William - 2012-05-15 08:29

      @GeeWhizz: The article says nothing about whether the perpetrators were black or white. I can guarantee you there are a lot of very corrupt white people out there. However, you also have to consider this fact: the entire Apartheid system was in and of itself corrupt, it's just that the "group" that shared in the spoils was bigger than 200+ civil "servants", they were all white people. It is easy to point fingers & judge, & I am not condoning the actions of these individuals because it IS wrong & horrific, but I'm arguing the point that this is not a black or white problem. This is a human problem that occurs everywhere. However, I think in SA's case, this epidemic is due to the fact that we now have people in power who know what real desperation is & are overwhelmed by the opportunity to enrich themselves, having known utter poverty in the past. Again, not condoning it, but solutions come from first understanding the underlying problems, the root cause. We need to end this, but we need to think clearly about what to address, before we know how to address it.

      Koos - 2012-05-15 08:35

      Let's blame apartheid. Just that there were no grants in those days. We all had to work for what we want.

      Rajen - 2012-05-15 08:44

      @PhilMemon, during the apartheid period, no black people was aloowed to work for government, so go and suck on that. I am a black person and I applied for a job in government and at that time the only jobs you could get in government was either be a cleaner, gardener or tea girl. I had my MBA and they refused to allow me to work in a government department. I had no option but to join the private sector. I can tell you that majority of staff today in all government deaprtments in our country are run by black people. So if funds went missing today it is not the white people because non of them are in power to handle funds in government departments, they are just cleaners, gardeners or tea girls.

      Gieljam - 2012-05-15 08:47

      With this type of regular "income" they will never run to the Western Cape...

      Trevor - 2012-05-15 09:17

      If the white man stole R200m, he would build a shopping mall with the money and people will get people employed and share. Not build a gold toilet pot for only him to use. OK! but 2 wrongs don't make a right

      Alan - 2012-05-15 09:36

      This is how the ANC creates MORE REFUGEES into other provinces. No-one with a shred of morality can ever vote for the ANC any more. By doing do, you just entrench further corruption, and the poor lose out more and more.

      Gestoffle - 2012-05-15 10:19

      Have you guys ever noticed with a story involving the ANC and fraud, corruption etc; you never seem to see the ANC supporters' comments? Where is tsoti/bluzulu/tama-naai now? @Marion, watch out, they could be the same person! PS - scroll down and see that all the comments are very favourable ie thumbsup. Except one or two - PhilMemon in particular insinuating that this could be whites committing fraud.....little does he know AA has killed any white positions there.....funny that, i am not even a brain surgeon.

      Antwahn - 2012-05-15 17:12

      I simply cannot believe that our noble freedom fighters would steal all this money. There must be a mistake somewhere. To have fought so long and so hard. They vowed to free their people from oppression and neglect by the evil apartheid rulers. And then, after such a long struggle, they would abuse the trust of their downtrodden supporters, their own people? Nah this is likely some DA plot to make our beloved liberation party look bad. Viva ANC viva!

  • christian.helberg - 2012-05-15 07:51

    LOL so much noise of the DA's deal, and yet this is a regular occurrence with the anc, typical.

      Gary - 2012-05-15 08:13

      Agreed, and the DA deal is a fraction of this,

      spartanx93 - 2012-05-15 08:18

      Its racists to beat down on the ANC! But, perfectly normal to bad mouth the DA on something that has not been proven yet.

      Nicholas - 2012-05-15 08:26

      Lets see if we get as much noise about this as we did with Zille's "refugee" comment. Don't hold your breath though, hundreds of millions of tax payers money being stolen is not as serious as opposition leaders not being politically correct.

      Koos - 2012-05-15 08:37

      The masses see it as stealing from the whites, so it is fine.

      bryan.culross - 2012-05-15 09:00

      and remember ... the DA issue is NOT and I repeat NOT about fraud ... it is about difference in interpretation of who can sit on a tender comittee ... if the DA was about fraud then there would be seruios questions in respect of Hunt Lascaris

  • Lyndatjie - 2012-05-15 07:53

    Aaaaahhhh... so THAT is how the ANC buys votes...

      Poloyatonki - 2012-05-15 09:58

      That amount sounds like its been blow out of proportion..

      Junebugg - 2012-05-15 11:05

      And they want Helen Zille to resign, SMH

      Genet - 2012-05-15 11:37

      No Poloyatonki, not blown out of proportion. It just blows the mind at the enormous amounts that are being stolen daily by these dreadful people.

  • Frans - 2012-05-15 07:53

    And people call for Zille's resignation over 70mil. Come on people, get real.

      Mike - 2012-05-15 07:56

      And there's no claim of fraud or profiteering alleged against the DA.

      Andrew - 2012-05-15 08:00

      In Zille's case there was no finding of fraud or corruption but merely some procedural issues in awarding the tender which are being contested in any event.

      Kala - 2012-05-15 08:16

      The DA were found to have incurred wasteful expenditure of less than R9 000.00. Its the proverbial drop in the ocean compared to the ANCs shinanigans.

      Steve - 2012-05-15 08:19

      It's because the cANCer wants it all to steal. This is only scratching the surface of how this country is being ripped off by the cANCer and civil servants. Obviously they think it is payback time. These people are not fit to govern a shabeen!

  • tobydt - 2012-05-15 07:54

    WCape... Brace yourselves for an influx of ECape refugees.

      Saffa in Asia - 2012-05-15 08:03

      Hey Frank, where did he mention colour? Eish, get a life, you racist.

      tobydt - 2012-05-15 08:08

      Frank - Because the people fleeing to WCape from the ECape, for health and education reasons are refugees. They are fleeing the incompetence and corruption.

      lmadikwe - 2012-05-15 08:15

      Frank read the statement correctly. there no were blacks are mentioned here. U such a dummy.

      Frank - 2012-05-15 08:16

      @saffa in asia: is it not mainly Africans that comes from the Eastern Cape to Western Cape to seek batter life? Dom Kop!

      tobydt - 2012-05-15 08:19

      Frank - PS, instead of getting all bitchy on the forums, why not try and fix the ECape rather? That will save you the embarrasment.

      Kent - 2012-05-15 08:24

      @ Frank. "Is it not mainly Africans that comes from the Eastern Cape to Western Cape to seek batter life?" = REFUGEE

      Don.Tandy - 2012-05-15 08:28

      @Frank - perhaps it is better to remain quiet and be thought a fool, than to open your mouth (or in your case put words to print) and remove all doubt.

      mastersvoice - 2012-05-15 08:32

      It does explain why there are so many "refugees" fleeing the EC for a better life elsewhere. The officials are stealing the province dry! Frank - my own parents fled the EC. You are obviously not willing to accept the truth!

      DuToitCoetzee - 2012-05-15 08:42

      @Frank. I know of white "refugees" who also come to WC to look for better medical attention so get of your defensive stand and address/discuss the issue/problem.

      indianajohn - 2012-05-15 09:13

      Oh for gods sake. When did the term "refugee" start referring to race? I'm so sick of this total crap from the ANC and people like Frank. There is no racism in that statement you moron.

  • Andrew - 2012-05-15 07:58

    Not a single day passes that you don't read about massive fraud and corruption by the ANC and its cadres. You never read about them being jailed however!!!!

      Kent - 2012-05-15 08:28

      @ Andrew. Or that they have repaid the stolen money.

      Steve - 2012-05-15 08:44

      Just imagine if all these corrupt fraudsters were brought to book across the land. We just don't have enough jail space to accommodate them all and these pricks know it. Perhaps they should turn all government departments into jails.

  • Robert - 2012-05-15 08:01

    Once again an ANC run area is as corrupt as a R3 note. Typical, did we expect anything else !!!

  • Mphotent - 2012-05-15 08:01

    This doesn't only happen in the EC...when I served in the Prov Govt of Gauteng, I was a specialist analyst of payroll data, I once figured out over 26M incorrectly paid to staff that didn't belong to the dept I worked for and this is due to poor monitoring system and misplaced personnel in critical posts. There wasn't even thank you after all instead HOD capitalised on such missappropriation as something figured out by her...Yooh public Service!!! When u good on what u do, you get chucked out to sit in pavement!!!!

      Jason - 2012-05-15 08:57

      Thats just nasty. Sadly only this bad are rewarded.

      Kala - 2012-05-15 09:01

      Mphotent - It seems the Government has got rid of the clever whites and are now going to chase away the clever blacks.

  • Sekalf - 2012-05-15 08:01

    this is an embarrassment! Just imagine what could have been done with ZAR 800.000.000,00 - ...and who is breeding this greed? ANC might have an answer on this...

      Jason - 2012-05-15 08:58

      dude, the anc made this as there answer.

  • Lacrimose - 2012-05-15 08:02

    Meanwhile Eastern Cape doctors have not been paid since December 2011. The Eastern Cape Health dept is pleading with them not to leave or embark on mass action. It will take "a few more weeks" to pay them.

  • Phumi - 2012-05-15 08:02

    What we want to see is people being named, shamed and jailed! Also these people should not be entitled to any presidential porden even in our jails are 200% over crowded!

      Maggie Cox - 2013-08-21 19:47

      Phumi - we've had plenty of names, but I haven't seen any of them appearing to be shamed! Just look at Dina Pule yesterday , for example - many other MPs hugging her and shaking her hand and carrying on as if she had done something clever? When the rest of the ministers sympathise with someone who should be in jail I see very little hope for this country to come right. Sadly.

  • Nigel - 2012-05-15 08:07

    Mr Human settlment (Sexwale) buying votes with illegal housing subsidies, is that why he is going to the EC, to make sure that all they people he stole money for, vote for him.

  • ndyeboreginaldmazawule - 2012-05-15 08:08

    I am not suprised with this stats. Just a corruption in great disorder and it reported as one of the low rated provinces in our country.

  • lmadikwe - 2012-05-15 08:10

    Why is it that the Eastern Cape is always on News reports for wrong reason. I wonder how much was squandered in education dept since their schooling system is in shambles.

  • antionette.nel - 2012-05-15 08:12

    And in the mean time us suppliers are not getting paid because of all the corruption and have to lay off people. So much for job creation Mr Minister

  • Deon - 2012-05-15 08:14

    I would not be surprised that the dishonest officials are more than the honest ones in EC. Clean up some more Dr Pillay?

  • Kenny - 2012-05-15 08:14

    The Eastern Cape has become the incubator of corruption. The ANC has turned that province into a financial wasteland shame on them

  • The-third - 2012-05-15 08:15

    They just can't help themselves. Hell it's almost funny.

      Maggie Cox - 2013-08-21 19:49

      But they are "helping themselves".

  • katmiles - 2012-05-15 08:17

    This makes me sick! The government is now going to impose upon us an ADDITIONAL tax for the national heath system. Just look where our money is going! Into the mouths of the corrupt officials that are supposed to be administering these exact funds for the poorest of the poor. We work hard for our money only for it to be stolen and abused.

  • wynandjsmit - 2012-05-15 08:19

    "15 900 department officials were illegally receiving child support". Magtag, hoeveel mense "werk" in die "departement". Is hulle bedonnerd??

      maseratifittipaldi - 2012-05-15 21:17

      Daar is seker 'n paar wat werk, maar van die 15 900 het 90% glo voorvader status.

  • sergeant.stadenko - 2012-05-15 08:24

    In the Eastern Cape (Transkei), it is quite common to see police vehicles & ambulances being used as Taxis.. What's new..!!

  • sergeant.stadenko - 2012-05-15 08:25

    In the Eastern Cape (Transkei), it is quite common to see police vehicles & ambulances being used as Taxis..

  • Don.Tandy - 2012-05-15 08:25

    Once again, why am I not surprised. There just seems to be no end to the wickedness and ineptitude of the ANCorruption in general. Rotten to the absolute core. Anarchy Nepotism Corruption

      msemido.sam - 2012-05-15 08:59

      They must go to jail

  • slapnando - 2012-05-15 08:26

    @ Zoolie, Figure is about 20billion every year, it could pay for the Sanral project in 2 and a half years,,,

  • Johan - 2012-05-15 08:26

    This could have nicely paid for the toll roads in Gauteng- who is willing to take me a bet that not one of these thieving corrupt officials will face any consequences

  • michael.barns.1 - 2012-05-15 08:27

    Cry the beloved country.....

  • Koos - 2012-05-15 08:28

    The only good thing is that it can only carry on untill there are no more money te steal. I'm looking forward to that point in the future.

      Olusunne - 2012-05-15 08:50

      Why african hates themself y? Corruption n fraud always germinatin in africa soil.our leaders are evil.may God help poor in d hand of anaconda.

      Olusunne - 2012-05-15 08:50

      Why african hates themself y? Corruption n fraud always germinatin in africa soil.our leaders are evil.may God help poor in d hand of anaconda.

  • Dennis - 2012-05-15 08:28

    I am not even slightly shocked at this news !!!

  • Rob - 2012-05-15 08:31

    And yet prejudice is labelled racism. How can a person not become prejudiced when so much criminality and corruprtion is being exposed? How can one not wonder cynically if the undisclosed corruption is not magnitudes more? Is any wonder that the credibility of anyone associated with the anc, national and local government is reduced in my mind? It goes on and on, from the highest to the lowest. It seems to have become a way of life and is simply accepted. Rarely is anyone held to account, the money recovered and the individual punished. THE ONLY VALID CONCLUSION (I can come to) IS THAT THIS IS DELIBERATE IF UNWRITTEN POLICY.

  • MSGRule - 2012-05-15 08:33

    The poorest province in the country. Nothing escapes the locust cANCer raviging the country

  • ArlsBlondie - 2012-05-15 08:35

    Terrible, those whom benefited should know the wheel turns, come a day when they need emergency assistance will be told that either there is no machine to assist due to lack of funds or no ambulance due to lack of funds. The sad thing is they will not link this to their actions. So the question here is, are you going to still vote for the same people to continue allowing this or do you finally see that it is time for change?

      Mewik - 2012-05-15 08:44

      Well that's not likely as they will be in private hospitals, paid for with the money they stole.

  • Wayne - 2012-05-15 08:35

    Stupid gravy train!

  • jaysonpaul.beckwith - 2012-05-15 08:36

    Eating beet root and lots of garlic can cure aids!!!!! Mabey it can help cure all the corrupt goverment officials with those dirty, grubby sticky long fingers.

  • Hilda - 2012-05-15 08:38

    I want to get onto the ANC gravy train

      lmadikwe - 2012-05-15 08:54

      Ja neh, why not join and be a fat cat. My first stop is @ Luthuli House. I want a membership card.

  • CJ - 2012-05-15 08:47

    Nice country to live in. Can I a;lso have a goverment post!!

  • Gavin - 2012-05-15 08:47

    Through-out all the years ive never heard of any official going to jail. I want a job with the ANC, im white, but im going to apply. Just think of it........... i can steal from the poor, buy a car i cant afford and swindle the money out of some government department and to put the cherry on top......................... ill get a smack on my hand and go back to work. I hope the people of the Eastern Cape vote DA, i hate the fact that GodZILLE would run the country, but there is a difference between doing thing wrong and blatent ^&*(ing theft. ANC are draining this country, they suck sh1t!!!!!!!!!!!!!!!! Eight Hundred Million, WTF!!!!!!!!!!!!!!!!!

  • Joe.deWet1 - 2012-05-15 08:48

    This is enormous! It is getting to the point where fraud is uncontrollable.

  • raymond.kok3 - 2012-05-15 08:50


  • sjhuman1 - 2012-05-15 08:53

    Fire them all. And make them pay back the money owed. Sell their assets. Point.

  • anthro45 - 2012-05-15 08:55

    For a change, can somebody PLEASE get locked for this!!!!!!

  • TheyTookMyNickLaZynEko - 2012-05-15 08:58

    WTF ECAPE??????? SIES ON YOU!!!!

  • capetownphotographer - 2012-05-15 09:00

    Another day, another Dollar.

  • Archie - 2012-05-15 09:02

    A new government is the only thing that can root out this rampant corruption.Soon there will be financial refugees from the eastern cape moving to other provinces because the Xhosas have robbed the fiscus blind.Remember no one will be prosecuted for this because they all work for the ANC

  • Damian - 2012-05-15 09:03

    You tell me that in only 18 years they learnt how to get away with stealing R200m? This doesn't even happen in movies!!!

  • Leon - 2012-05-15 09:03

    Are we really surprised?? ± 70% of Government officials and government employee’s are corrupt and their unquenchable thirst for more money will never be satisfied!

  • max.maxwell - 2012-05-15 09:04

    Again the taxpayer must foot the bill! The ANC stronghold of the Eastern Cape is riddled with corruption - perhaps the perps think they are bullet-proof because the have contacts high-up? Who knows? The ANC aren't saying anything! It's time the Government rid South Africa of "The African Disease" - GREED!

  • vernon.samuel.7 - 2012-05-15 09:04

    In 20 years I have never worked for a single company in which R10,000 could have gone missing without being noticed within 2 months. Yet in government billions go astray everyday; with no chance of recovery except from the ever-reliant taxpayer. Can government officials please remember that their posts should be seen as being akin to businessmen and not pop stars? They clearly do not have the honesty, maturity or responsibility to handle public funds. Nothing but dismissals of guilty parties will fix the problem.

      Pule - 2012-05-15 09:10

      I suggest you go back to school.You're still young don't just increase youth unemployment.

      indianajohn - 2012-05-15 09:18

      Pule? What? How can you find any fault with what Vernon said? Seriously? Which part is not right? Tell me.

      vernon.samuel.7 - 2012-05-15 19:04

      Hey Pule I think that I will take your advice and go back to school. When I was at school we needed a higher grade pass to qualify for tertiary education. Any mark less than 50 percent was seen as an embarrassment. We feared teachers as much as we respected them. We were never severely beaten, but teachers did not hesitate to mete out punishment with ruler, rod or even hand when the need arose. We wore our uniforms with pride and worked hard to finish matrix with as many distinctions as possible. When we matriculated, we took any job on offer, even working entire weekends for less than a hundred rand, because we knew the value of money and the value of hard honest work. Now apparently I can do as I please and the system cannot discipline me. Because the courts are on my side. I can lie about being tormented by a teacher and have him/her ridiculed in the media. I can cruise through with a 30 percent pass rate on any low grade and I will come out assured of a well-paid job because my mates in Cosatu are fighting all and sundry for me not to be paid a minimal wage. Thanks for the advice mate. I wish I were born 20 years later :-)

  • Rob - 2012-05-15 09:05

    The likes of FRANK posted in this thread would see large numbers of the masses move to the WC so that the DA can be outvoted. Now that is a logical solution because if the WC was anc run it would rapidly deteriorate into the same corrupt and mismanaged shambles that the rest of SA is in. The net effect would be that regardless of the actual conditions the relative states of all provinces would be similar and therefore satisfactory! This is typical socialist/collectivist thinking.....equalise by taking down to the lowest commion level. All in favour thumbs up!

  • philschalkwyk - 2012-05-15 09:05

    Anyone surprised??

  • jacques.koorts - 2012-05-15 09:05

    There is your e-toll money. Done.