E Cape health official convicted of fraud, money laundering has R250 000 deducted from his pension

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  • An Eastern Cape health official who defrauded the department of nearly R250 000 has had that amount deducted from his pension.
  • Baxolile Ngoloyi, a former supervisor at Bhisho Hospital's stores department, authorised R248 634 payment to a supplier for non-existing work.
  • He was found guilty of corruption, fraud and money laundering in March 2021.

The Eastern Cape health department has recovered R248 634 from its former logistics official Baxolile Ngoloyi after he fraudulently took the amount from the department between 2017 and 2018. 

The funds were deducted from Ngoloyi's pension fund entitlements which he enjoyed with the Government Employees Pension Fund. 

The National Prosecuting Authority (NPA) announced on Friday that its Asset Forfeiture Unit (AFU) successfully facilitated the recovery of the money. 

This comes three months after the Port Elizabeth Specialised Commercial Crimes Court granted the AFU a confiscation order to recover the money in terms of Section 18 of the Prevention of Organised Crime Act 121 of 1998 (POCA). 

READ Bookkeeper sentenced to 8 years for stealing R1.2m from centre for the physically, mentally disabled

This was after the court found Ngoloyi guilty of corruption, fraud and money laundering in March 2021. 

He pleaded guilty to the crimes he committed while he was also a supervisor in the Bisho Hospital's stores department.

The department used the Logistical Information system (LOGIS) for the supply chain process of procuring goods and services. Ngoloyi worked with other staff members on LOGIS to process payments to suppliers.

The NPA said that from 11 December 2017 to 6 June 2018, Ngoloyi conspired with Sithembile Smith, the sole director of Eza Services and Suppliers, a construction company based in Cookhouse, to make use of Eza's bank account in order to facilitate fraudulent payments from the department. 

According to the NPA, Ngoloyi and Smith made a misrepresentation to the department by submitting that Eza provided goods and services to the department while it did not do so. 

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The total amount paid out by the department before the fraud was discovered was R248 634. Smith pleaded guilty to money laundering in August 2020 and was given a five-year suspended sentence.

He also turned State witness. 

Ngoloyi's sentence was scheduled to be handed down on 4 October by the Port Elizabeth Specialised Commercial Crimes Court. 

AFU regional head, Doctor Chris Ndzengu, commended the AFU and Hawks in ensuring that the successful prosecution was followed by the recovery of taxpayers' money.

The AFU was represented by senior prosecutor Warren Myburgh.

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