Police have confirmed via an official statement that a 65-year-old former head of department for Roads and Public Works in the Northern Cape and a company director were apprehended on Tuesday by the Hawks Serious Corruption Investigation team.
They are set to appear in the Kimberley Magistrate’s Court on charges including contravening the Public Finance Management Act, fraud, corruption and money laundering.
SAPS spokesperson Nomthandazo Mnisi explained that the charges stem from a controversial project initiated back in 2003, where 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.
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Initially budgeted at a staggering sum of R290 million, it was anticipated to be a beacon of hope for mental health patients in the region, Mnisi said.
But now allegations have emerged that the project was plagued by mismanagement and corruption from the start. “It was revealed that a liquidated contractor received a R420 million payment, well beyond the project’s original budget,” she said.
Reports have also revealed that several buildings constructed as part of the facility now face the prospect of demolition, as it was discovered that the appointed company lacked the necessary expertise to complete the job.
“Furthermore, investigations show that proper procurement procedures were disregarded when appointing the consultant for the project,” she added.
As a result, Mnisi confirmed that the lack of oversight and due diligence in this regard has left the facility incomplete and unusable, inflicting significant financial losses on the already-strained Department of Health.
The woes surrounding the construction of the facility were not limited to financial irregularities. Reports of maladministration and a lack of value for money have plagued the project throughout its duration.
In response to the arrests, provincial head of the directorate Major General Stephen Mabuela expressed his satisfaction with the progress made by the investigation and assured the public that additional arrests are imminent, considering how extensive the scandal around the project has been.
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