Free State health dept defrauded of over R8m, 2 government officials and 5 businesspeople charged

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Two government officials and five company directors in the Free State were charged with defrauding the provincial Department of Health.
Two government officials and five company directors in the Free State were charged with defrauding the provincial Department of Health.
PHOTO: Supplied by Hawks
  • Seven people were arrested for defrauding the Free State health department.
  • An internal investigation revealed more than R8 million was paid to service providers.
  • However, no evidence could be found on whether the service providers ever rendered a service.


Two government officials and five company directors have been charged with defrauding the Free State Department of Health out of more than R8 million.

This after an internal investigation revealed more than R8 million was paid to service providers, while no evidence could be found that they had rendered the services.

The seven suspects were arrested by the Hawks on Friday and face charges of fraud, forgery, uttering, money laundering, and corruption.

According to Hawks spokesperson, Captain Christopher Singo, the alleged fraud was discovered during an audit of the department by a team from the Auditor-General's office.

The team requested information on certain payments to service providers and queried the department’s procurement process.

Singo said:

As a result, an internal investigation followed whereby it was discovered that false or forged 'requests for payment advices' were submitted during the period of January 2011 until December 2015, for payments with regards to the service providers. It is further alleged that no evidence could be found whether the actual services were rendered by the service providers.

As a result of the alleged fraud, the department suffered a total loss of more than R8 million, he added.

Meanwhile, in an unrelated matter, the Special Investigating Unit (SIU) announced on Monday that it had started investigations into 2 101 personal protective equipment (PPE) deals awarded by the Gauteng government. The deals are worth R6.328 billion.

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