Ex-HOD & director arrested for Kimberley’s mental health facility R420 million tender fraud
The Hawks have arrested a former Public Works head of department in the Northern Cape and a company director on Tuesday for alleged R420 million tender fraud at Kimberley’s mental health facility.
According to Hawks spokesperson Nomthandazo Mnisi, the charges stem from a controversial project initiated back in 2003 after the Northern Cape Department of Health and Department of Roads and Public Works collaborated as implementing agents to construct a state-of-the-art mental health facility in Kimberley.
“It is further alleged that some of the constructed buildings faced possible demolition after R420m was paid to a liquidated contractor on a project that was originally budgeted R290m.
“It was discovered that the company that was appointed did not have the capacity to render the service and contract was terminated whilst money was already paid,” Mnisi said.
Mnisi said work on the project has since been halted, leaving the facility incomplete and unusable after officials failed to follow normal procurement procedures when appointing the consultant.
“The Mental Health hospital whilst under construction, experienced issues of maladministration for the years that the project was in progress,” Mnisi added.
Mnisi said the duo is facing charges of contravention of Public Finance Management Act, fraud, corruption and money laundering.
They are expected to appear at Kimberley Magistrate’s Court on Tuesday.
Meanwhile, the provincial head of Hawks Major General Stephen Mabuela, welcomed the arrest and said further arrests are imminent.
-IOL
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