Court documents expose Brian Hlongwa-linked company’s corruption

The ANC received donations from a company that profited hugely from the Gauteng department of health when Brian Hlongwa was health MEC, according to court documents made public on Wednesday by the DA.

In 2014, the national director of public prosecutions (NDPP) issued an application to seize assets suspected to be the proceeds of crime from Brian Hlongwa and 3P Consulting, relating to dealings with the Gauteng department of health (GDoH).

The documents released today, which were annexures to a report by the Anti-Corruption Task Team (ACTT) that formed part of the NDPP’s application, allege that R130 000 was paid to the ANC Sedibeng region by 3P Consulting in 2008.

These funds were allegedly used to pay half the costs for the ANC Women’s League (ANCWL) Conference held in Parys in 2008.

An email from someone called Mlungisi, thought to be prominent ANC Sedibeng member Mlungisi Hlongwane, thanks 3P Consulting managing director Richard Payne for assisting with a donation to the ANCWL.

The email goes on to ask for proof of payment “so that we can take the slip to the booked venue. This will enable the ANCWL to conclude on the logistics arrangements on time”.

The documents also alleged an employee was irregularly appointed as acting chief financial officer (CFO) for GDoH during Hlongwa’s tenure as health MEC from 2006 to 2009.

Another Standard Bank report shows R40 000 transferred from 3P Consulting to a Friends of the ANC (Franc) bank account in 2009, just before the general election, authorised by Payne.

Hlongwa admitted he and Payne were long-time friends.

3P Consulting is also alleged to have set up a Project Management Unit that awarded contracts to companies in which it had a share or siphoned money through gross overcharging.

One of these companies was Bosele Placements. An affidavit by a Bosele employee reads: “GDoH was forced to use Bosele’s staff even though they resented the presence of the Bosele staff as Bosele duplicated their duties. Richard Payne and Arno Hart have shares in Bosele Placements.”

According to another employee: “Bosele invoiced ridiculous hours and amounts. [They] billed hours from the time that they leave home to go to the hospital where they were posted. I am not sure that they worked all the hours that were billed. There was apparently no limitation on the hours that Bosele staff could bill.”

According to an affidavit by Eric Bryer, an attorney with a company that dealt with 3P and Bosele: “It quickly became apparent that 3P was milking the GDoH in every possible way …. 3P invented projects for GDoH so that it could make money. The intention was to get as much out of the GDoH as possible.”

The ACTT report recommends that R51 million in total should be claimed back from 3P because of suspected fictitious work and gross overcharging by Bosele.

A DA press release alleges there is good reason to believe that far higher amounts were funnelled by 3P to the ANC in Gauteng, involving not just Hlongwa, but also then ANC provincial chairperson Paul Mashatile, who is now ANC treasurer-general.

According to Bryer’s affidavit: “Richard was often in the company of Brian Hlongwa and Paul Mashatile, who was the Premier of Gauteng at the time. They were all interested in grands prix, with Obakeng Mookeletsi, and travelled around the world to attend the races. Richard used to tell me about his relationship with Mashatile, and phoned him in my presence. He said he sponsored Mashatile. I do not know how the sponsorships were channelled.”

DA Gauteng shadow health MEC Jack Bloom said: “These documents should assist the police in following up the charge I have laid against the ANC for contravening the Prevention of Organised Crime Act by receiving the proceeds of unlawful activities. According to the DA’s Hlongwa Monitor, it is now 41 days since the public release of the Special Investigating Unit (SIU) report which implicated him in R1.2 billion corruption, but he has still not been fired as ANC chief whip in the Gauteng legislature.

“Hlongwa’s re-election to the ANC‘s provincial executive committee shows that they endorse corruption despite Premier David Makhura’s hollow words against it. If Makhura really cared about corruption, he would make the ANC ‘pay back the money’ that came from corrupt activities according to solid evidence.”