The fraud case against the former Head of Department (HOD) in the Department of Health, Dr Andrew Lekalakala, sat in the High Court of South
Africa, North West Division yesterday. The charges relate to the alleged fraudulent awarding of a contract for mobile clinics to Mediosa Health Pty (LTD) in February 2017, a company linked to the Gupta family. These mobile clinics were meant to service rural areas in the North West.
According to a statement issued by Henry Mamothame, the NPA spokesperson in the North West, Lekalakala is facing two charges of fraud, one of contravening the Public Finance Management Act (PFMA) and another in terms of the Prevention and Combating of Corrupt Activities Act (PRECA).
According to Mamothame, a similar project was being implemented in the Free State province and Lekalakala, as the then Accounting Officer, allegedly
decided to participate in the same contract and elected to apply the Treasury Regulations that allow for participation in an existing contract arranged by another organ of state, with the same contract terms.
"However, it was discovered that the awarding of this contract did not comply with Treasury Regulations and the project was not budgeted for. The accused also falsely indicated during a management meeting that the service by Mediosa Health was a National Department of Health initiative that would be rolled out to other provinces.
He further lied that there was compliance with the Treasury Regulations," stated Mamothame. The NPA further said that Mediosa Health allegedly received an upfront payment of R30 million. Lekalakala is said to have received gratification through a trip to India, accompanied by his spouse and
associates.
The state also intends to prove that the Service Level Agreement was signed on this trip rather than at the Department of Health offices. The state is expected to call on more witnesses when the trial commences throughout the week. The accused is still out on R5000 bail, extended until his next court appearance.
