Two former Health HODs face fraud charges in Durban

One of the accused was previously deployed to help the Eastern Cape's department with their Covid-19 response.

Two former KZN Department of Health HODs Dr Sibongile Zungu (60) and Sifiso Mtshali (53) appeared in the Durban Specialised Commercial Crimes Court yesterday.

They are charged with fraud and contravening the Public Finance Management Act 1 of 1999.

It is alleged that during 2013, the KZN Department of Health awarded a 36-month lease to Mzansi Lifecare (Pty) Ltd for the hiring of a mobile clinic.

The contract was further extended, reportedly without following the supply chain management process.

“In 2016, the department awarded Mzansi Lifecare (Pty) Ltd a contract for the outright purchase of four mobile clinics to the value of R32m without following any supply chain management processes.

“The vehicles were registered under Mzansi Lifecare (Pty) Ltd instead of the department,” says Hawks spokesperson Lieutenant Colonel Simphiwe Mhlongo in a statement.

According to a report by the now suspended Public Protector, advocate Busisiwe Mkhwebane, the HOD as the accounting officer at the time failed to act in accordance with certain regulations resulting in improper conduct.

Zungu and Mtshali were released on warning and the case was postponed to August 4.

The Hawks

The Hawks says the roadworthy certificates for the mobile clinics were not obtained by the department and the vehicles were parked off for three years.

It was alleged that the director of Mzansi Lifecare (Pty) Ltd, Nandi Msimang, fraudulently removed the four mobile clinics and sold them, as a result the department suffered a loss of R32m.

A case of fraud was reported at the Pietermaritzburg Police Station and the case docket was allocated to the Durban-based Hawks’ Serious Corruption Investigation Unit for an intensive probe.

Mhlongo says a warrant of arrest has been issued for Msimang and the Hawks are looking for her in connection with this case.

Anyone with information of her whereabouts is urged to contact Captain Pillay on 071 481 3789.

During the investigations, Zungu had been deployed to different parts of the country.

In 2020 she led the team deployed to rectify the Eastern Cape Health Department’s disastrous Covid-19 response and in 2021 she was appointed as the acting head of the Gauteng Department of Health.

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Ruan de Ridder

A digital support specialist at Caxton Local Media, known for his contributions to the digital landscape. He has covered major stories, including the Moti kidnappings, and edits and curates news of national importance from over 50 Caxton Local News sites.
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