Note to Editors: Please find a soundbite in English from Dr Jack Bloom MPL here.
A company with links to suspended Gauteng Health Department Head Lesiba Malotana got R10 million from corrupt contracts with Tembisa Hospital.
This bombshell was revealed by Gauteng Health MEC Nomantu Nkomo-Ralehoko in a written reply to my questions in the Gauteng Legislature.
KGDEE Mash (Pty) Ltd is a shell company based in Polokwane, but from August 2020 to August 2022 it scored contracts worth R9 972 532.66 to supply the following:
• Medical consumables and surgical items;
• Medical disposables and accessories; and
• Minor infrastructure related service.
All the contracts were with Tembisa Hospital, except for one with Pholosong Hospital. They were awarded by Requests for Quotations (RFQs) where three quotes are invited and approved by the hospital CEO for purchases under R500 000. This is the same system that was abused in contracts worth more than R2 billion, awarded to syndicates using fake companies that failed to deliver any goods.
Malotana was suspended in October last year after failing his lifestyle audit. According to court documents when he challenged his suspension, the SIU found that his company, Pulse Management Consultants, had financial transactions with Cedmas Funeral Services, which is directly linked to KGDEE Mash – a company flagged by murdered whistleblower Babita Deokaran.
The SIU found that Malotana was high risk due to non-disclosure, misrepresentation, and a potential conflict of interest due to his relationship with Cedmas/KGDEE.
I doubt whether KGDEE delivered any goods to Tembisa Hospital. They should not have got any contracts as they were not registered by the South African Health Products Regulatory Authority (SAHPRA) for medical products.
Malotana’s disciplinary process is continuing, but he was moved to a senior position at the Gauteng Cooperative Government and Traditional Affairs Department after his 60-day suspension lapsed before charges were laid against him.
The DA urges Premier Lesufi to fast-track disciplinary action against Malotana, who should never have been appointed to head a notoriously corrupt department. His appointment shows the poor judgment of Health MEC Nomantu Nkomo-Ralehoke who recently described Malotana as “the best the department had ever had”.
A major shake-up is needed to root out corruption in the health department.
Premier Lesufi should fire the Health MEC and ensure that corrupt officials are weeded out and replaced with competent, honest professionals who can fix our public hospitals.