A Durban businesswoman convicted of large-scale fraud at Inkosi Albert Luthuli Central Hospital now claims she pleaded guilty by mistake.

According to The Witness, she only raised the issue after it became clear she was facing a prison sentence.

Oleena Dauchand, the sole director of Trestine Trading CC, told the KZN High Court last week that she had intended to plead not guilty to dozens of fraud charges but said her legal team had entered the wrong plea on her behalf.

Dauchand has asked the court to halt her sentencing, arguing that she acted on poor legal advice and was under emotional distress at the time, as her mother was on her deathbed.

The state, however, maintains her sudden change of heart came only after a pre-sentencing report recommended imprisonment.

Scheme mirrored Tembisa Hospital scandal

The case stems from a criminal syndicate uncovered at the province’s flagship public hospital, mirroring the corruption scandals that rocked Tembisa Hospital in Gauteng.

According to the state, Consulens Medical Healthcare Solutions, a subcontractor to the KZN Department of Health, allegedly manipulated its internal systems to generate fake orders for medical supplies.

Trestine Trading, Dauchand’s company, would then issue invoices for goods that were never required or delivered.

The invoices were nevertheless processed and paid by Consulens, with the proceeds allegedly shared between Dauchand and Consulens’ former logistics manager Rakesh Maharaj.

Maharaj earlier pleaded guilty to fraud and money laundering involving R5.7m and was sentenced to eight years in prison.

Court halts sentencing pending review

Dauchand and her company faced 59 counts of fraud, 59 of corruption, and one of money laundering for transactions between January 2015 and August 2017.

In April, she filed a 15-page plea explanation admitting guilt, and both she and her company were duly convicted.

Three months later, she attempted to retract her plea.

The High Court has now suspended the sentencing proceedings pending the outcome of her review application.

Wider probe into hospital corruption

The revelations at Albert Luthuli Hospital add to growing concerns about systemic graft within South Africa’s public health sector.

Medical Brief reports that Acting Police Minister Firoz Cachalia has warned that Tembisa Hospital ‘may not be the only institution with this problem’ and called for a nationwide probe into hospital supply chains.

The Public Servants Association (PSA) and the National Education, Health and Allied Workers’ Union have echoed his call, urging authorities to investigate corruption across all government health facilities.

PSA spokesperson Madimetja Mautla said: “Books and supply chains of these hospitals should all be checked so that we can eliminate this corruption.”

Cachalia added that such graft amounted to a ‘threat to national security’, saying: “We are all rightly outraged by the brazen shamelessness and cruelty of the grand larceny at Tembisa. And I’m sure it’s not the only hospital with this problem.”

The case against Dauchand continues.

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