‘Monument of corruption’: More suspects in court for Kimberley mental hospital scandal

The six additional accused, including senior government officials and private consultants, appeared briefly in the Kimberley Magistrate’s Court on Wednesday, 28 May, in connection with the high-profile Kimberley Mental Health Hospital corruption case in the Northern Cape.

Following their arrest and first court appearance, Lourencia Crause, Louis Adriaan van Niekerk, Monyahi Winston Modisa, Edward Charles Pullen Petzer, Motlalepula Elias Selemela and Ruth Palm face charges ranging from fraud, corruption, money laundering, and contraventions of the Public Finance Management Act (PFMA).

Kimberley Mental Health Hospital

The matter concerns the construction of the Kimberley Mental Health Hospital, which commenced in 2005 and saw its original R297 million budget escalate to more than R1 billion due to delays, poor workmanship, and frequent changes in contractors.

The hospital was built to relieve the pressure on West End Hospital and to offer mental health services in the Northern Cape

The services include child and adolescent mental health care, forensic mental health care and general adult psychiatric services.

‘Monument of corruption’

When Northern Cape Premier Dr Zamani Saul opened the multimillion-rand hospital back in 2019, he referred to it as a “monument of corruption” due to its construction marred by irregularities.  

Spotlight reported at the time that Saul said the hospital, which has a capacity of 287 beds, will be operationalised in phases. 

Construction contract: Massive cost overruns

In August 2005, the then head of department (HOD) for the Department of Roads, Transport and Public Works, Motlalepula Elias Selemela, awarded the construction contract to Vista Park/Joh Arch Investments.

Irregularities were identified in the project, which allegedly contributed to massive cost overruns.

Additional accused face multiple charges

Selemela and Palm, also a former HOD in the department, are facing multiple charges for contraventions of the PFMA:

• Selemela faces 26 counts involving unlawful payments totalling over R15.2 million.
• Palm faces 24 counts, involving irregular payments amounting to R39.4 million.
• Both are also charged for allegedly failing to recover penalties of approximately R11.3 million from service providers who breached contract terms.

The four co-accused — Crause, Van Niekerk, Modisa, and Petzer — were directors of Strabismis Trading (Pty) Ltd and Babereki Consulting Engineers.

They are charged in both their personal and fiduciary capacities for their role in facilitating payments of more than R51 million to entities that had no valid contracts with the department.

Broader investigation

These payments, the State alleges, were made with full knowledge that the funds were not lawfully due.

The charges stem from the appointment of Babereki Consulting Engineers on 8 October 2003 to provide civil and structural engineering services for the proposed multimillion-rand psychiatric hospital.

These developments form part of a broader investigation into public corruption and mismanagement.

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List of Kimberley Mental Health Hospital corruption accused

The newly charged individuals form part of the previously charged accused, including former HOD Patience Mokhali, former MEC John Block, company Babereki Consulting Engineers, and company director Tshegolekae Motaung, who are currently out on bail following their appearance in 2023.

Bail was granted to the six accused as follows: Crause was granted bail of R2 000; Van Niekerk, Modisa, and Palm were each granted bail of R10 000; and Selemela was granted bail of R5 000.

• The case has been postponed to Monday, 2 June 2025, when the accused are expected to join their co-accused in the Kimberley District Court.

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