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A company embroiled in a R1m tender scandal was registered eight days before it was awarded the contract in question despite not even having a business bank account.
Ithani Amen was registered with the Companies and Intellectual Property Commission (CIPC) on August 22 2023 and on August 31, it was given a tender by the national health department to preside over disciplinary hearings. Its business bank account was only opened a day later.
At the time, the company did not possess a VAT number, a crucial and basic requirement needed for any company to apply for a government tender. Ithani Amen was paid for its service with the Global Fund Grant, which was meant to support SA’s response to the Covid 19 pandemic.
On Monday, three senior officials from the department, who are said to have aided the Ithani Amen in the tender award, appeared at the special crimes court in Pretoria on charges of theft and fraud. The department’s acting deputy director-general for corporate services, Malixole Mahlathi, CFO Phineas Mamogale and director-general Sabelo Sandile Buthelezi were arrested by the Hawks on Monday morning.
According to the charge sheet, the hiring of Ithani Amen followed misconduct charges against Adv Maile Ngake, accused of mismanaging and underspending at the Global Fund Grant.
It’s alleged that Mahlathi procured the company’s services and ignored certain requirements and procedures.
According to the investigating officer, the company’s invoice did not have an invoice number, company registration or VAT number.
“On or about August 31 2023, Ms [Nokuzola] Mafunda [director of Ithani] was appointed as an investigator, to investigate the labour sector relations chief directorate at the national department of health on a fee based on the DPSA guide to consultant fees; and
“On or about September 1 2023, Ms Mafunda opened a bank account on behalf of Ithani Amen, First National Bank, account number *****756, and declared that the said entity’s physical address is Penina Park, Polokwane, her residential address,” read the charge sheet.
The firm was subsequently paid R770,796.
Authorities believe the firm’s registered details were misleading and that the firm did not meet the requirements to preside over the disciplinary hearings.
The charge sheet also suggests the three department seniors were not truthful when they said Mafunda was the only qualified consultant worthy to be appointed as the investigator in the matter.
It is further alleged that Mafunda misled the department when she claimed to have signed the declaration of interest and that she had a personal relationship with a person employed by the state and that person may have been involved in the evaluation and adjudication of the bid.
Mahlathi also requested Buthelezi to deviate from the normal procurement process when appointing the chairperson of the disciplinary hearing of Adv Ngake.
Three days after Adv Joyce Nkopani was appointed as the chairperson of the inquiry of a date that had to be determined, Mafunda produced a report with findings.
After Mamogale failed to pay Ithani Amen and Nkopani, as they were not in the supply chain database, the money was then claimed and cleared through the national health budget. Nkopani charged R18,000 per day.
The investigator in his affidavit also told the court that Buthelezi, who signed to appoint Mafunda, had many discrepancies and questionable notes, including the absence of Adv Ngake’s name in the letter.
A Hawks spokesperson Col Katlego Mogale said that Mafunda and the company are yet to be arrested and added to the number of the accused.
During court proceedings the state did not oppose their bail, as they have no previous convictions or any pending matters against their name.
The investigator also said that they are not a flight risk nor do they pose any threat to society.
The court released the officials on R10,000 bail each and ordered that they should not enter the national offices, and the matter was postponed to June 03.
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