SEVEN years on and the trial still continues of nine people who are accused of instigating and being involved in a scam which swindled 11 Zululand hospitals of more than R7.2-million.
The accused re-appeared at the Empangeni Regional Magistrate’s Court last week and the case was again postponed for 15 October.
Seven of the accused are from Zululand.
Jaysinth Jezreel (JJ) Michael, his wife Tracy Michael, Ronnie Gumede, Glenrose Mtshali, Nokukhanya Ngcobo, Thobelani Majozi, Precious Mkhungo, Audrey Bailey and Edith Lee spent two days listening to Public Prosecutor Advocate Rathanjee outlining over 180 charges which the accused face.
The case against Precious Sbongile Ketha Mkhungo was withdrawn by the State and the remaining accused all pleaded not guilty.
The matter has been postponed on the grounds that the defence requires the authentication of the documents presented to the Magistrate and the accused will again appear next month.
It is alleged that in 2001 JJ Michael presented a fraudulent document to the pharmaceutical companies of Adcock Ingram Critical Care and Fresenius Kabi SA, stating that his company known as Intramed Pharmaceutical Suppliers and/or Feurette Forty CC, was registered with the South African Pharmacy Council to manufacture, sell and distribute schedule medicines.
He allegedly produced a similar letter to the management of 11 KZN hospitals.
This included Ngwelezana Hospital, Hlabisa Hospital, uMkhanyakude’s Mseleni and Manguzi hospitals, Nkandla and Ekhombe hospitals in Nkandla, Benedictine Hospital in Nongoma, Bethesda Hospital in uBombo, Ceza Hospital in Ulundi, Catherine Booth Hospital in Amatikulu and Mbongolwana Hospital in eShowe.
The letters to these hospitals reportedly stated that Intramed was contracted to distribute schedule medicines to government.
The scam was discovered in 2006 following an investigation by the Durban Organised Crime Unit.
According to court documents, hospital employees Gumede, Mtshali, Ngcobo, Majozi and Mkhungo would allegedly place orders for scheduled medications with Intramed Pharmaceuticals instead of other accredited suppliers.
In exchange, it is believed the hospital employees received payments for their participation in the scam.
The orders would then be forwarded to Adcock Ingram Critical Care consultants Bailey and Lee, who would supposedly ensure the medication was delivered to a warehouse in Durban.
The medical supplies would then be picked up in Durban and distributed to the hospitals according to their orders.
According to court documents, the medicines were sold to hospitals at prices much higher than normal prescribed fees, to the degree that the accused are believed to have pulled the wool over the eyes of the KZN Department of Health to the tune of over R7.4-million.
