EC businesswoman on bail as Hawks pounce on officials for R1.2bn tender fraud

A 48-year-old businesswoman has been released on bail of R20 000 after she made an appearance in the Specialised Commercial Crimes Court in Mthatha, Eastern Cape today on two charges of fraud.

The businesswoman, Pumza Poshee Gambula, was arrested by the Hawks for alleged fraud totaling R4.8 million linked to the OR Tambo District Municipality.

According to National Prosecuting Authority spokesperson Sipho Ngwema, Gambula, through her company Phathilizwi Training Institute, had a contract with the municipality to conduct awareness workshops on an ongoing basis.

Ngema said that Gambula’s company was also charged along with her.

“Between March 2020 and June 2020, during the stricter levels of Covid-19 lockdown, Phathilizwi Training Institute submitted two invoices for R3 036 000 and R1 821 600 to the municipality,” Ngema said.

“The company claimed for conducting door-to-door community awareness workshops on Covid-19 in different wards in the Mhlontlo and Port St John’s Local Municipalities, which fall under the OR Tambo District Municipality.”

Ngema further said, however, that the workshops were not conducted.

“The state alleges that the accused and their employees visited the wards in these municipalities. However, members of the community were asked to write down their names for Covid-19 social grants. No Covid-19 awareness workshops were conducted.

“Attendance registers attached to the invoices as proof of services rendered contained names of people who were not staying in some of the wards that were visited by the accused as part of their door-to-door awareness campaign on Covid-19. These documents were widely circulated on social media leading to a national outcry.

“Even though the claimed amounts were not paid to the accused, the municipality stood to suffer potential prejudice.”

He added that Gambula was ordered to hand in her passport, while she was also ordered to report to Madeira Police Station twice a week until the trial was finalised.

The matter was postponed to 30 October 2020 for further investigations and for it to be transferred to the Regional Court.

In separate incidents, the DPCI also arrested four former senior state officials today for alleged R1.2 billion tender irregularities committed at the Gauteng Department of Health in 2007.

The former state officials are appearing in the Palm Ridge Specialised Commercial Crime Court.

They are to face charges of fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA).

Background

The Hawks said in a statement that the case against the officials emanated from February 2007.

“Wherein the State Information Technology Agency  submitted a proposal to the department of health to continue with an information technology maintenance programme at the department,” the statement read

According to the Directorate, the total cost of the project was not meant to exceed R57 million for a period of three years.

“The contract was instead awarded to a private entity at a whopping cost of around R1.2 billion without following due tender procedures.

“The four former state officials which included a former head of department , who was also an accounting officer at the time, chief director of information communication and technology, head of supply chain management and the deputy director for executive support allegedly received kickbacks for their role in ensuring that the contract was awarded to an undeserving entity.

“Two private company directors who unduly benefited from the contract are yet to be charged along together with their two companies. The said directors are reportedly outside of the country, but steps have already been initiated to ensure that they are accounted for.”

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