- Imprisoned former Northern Cape ANC chairperson John Block is facing new charges in connection with R51 million tender fraud dating back to 2003.
- Block appeared in the Upington Magistrate’s Court on Tuesday.
- He and his co-accused, Patience Mokhali and Babareki Consulting Engineers director Tshegolekae Motaung, are accused of contracting a company that did not meet the requirements to build a mental health hospital.
Former Northern Cape ANC chairperson John Block, who is currently serving a 15-year sentence for corruption, is facing new charges in connection with R51 million tender fraud.
Block, 55, appeared in the Upington Magistrate’s Court on Tuesday.
In a joint statement, the Hawks and National Prosecuting Authority said Block and his co-accused, Patience Mokhali and Tshegolekae Motaung, allegedly awarded a R51 million tender for a mental health facility to a company that did not meet the requirements.
“It is alleged that in 2003, Babereki Consulting Engineers CC was fraudulently awarded a tender as a structural and civil engineer as well as a project manager within the mental health hospital construction project.
“During his tenure as political head, Block and former HOD [head of department] Patience Mercia Mokhali appointed Babereki Consulting Engineers CC, whose director is Mr Tshegolekae Motaung, although the company did not meet the necessary requirements.
“The actual amount involved is approximately R51 million.”
News24 earlier reported Mokhali, the former head of department for roads and public works, and Motaung were arrested on 23 May on charges of fraud, corruption, and money laundering totalling R420 million.
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“It is alleged that during 2003, the Northern Cape Department of Health, together with the Department of Roads and Public Works, as implementing agent, embarked on a project to construct a new mental health facility in Kimberley.
“The original contract was for an amount of R290 million,” said provincial Hawks spokesperson Nomthandazo Mnisi.
Mnisi said some of the constructed buildings faced possible demolition after R420 million was paid to a liquidated contractor on a project that was initially budgeted at R290 million.
The money was paid to Vista Park, which was later liquidated, she added.
It was discovered the company which was appointed did not have the capacity to render the service, and the contract was terminated while money was already paid.
“Work on the project has since been halted, leaving the facility incomplete and unusable at a considerable cost to the Department of Health,” said Mnisi.
Mokhali, 65, and Motaung, 59, face charges of contravening the Public Finance Management Act, fraud, corruption and money laundering.
Mokhali was released on R10 000 bail, and Motaung on R50 000. The two worked on the building project in 2003.
Block is expected to appear in the Kimberley Magistrate’s Court on 11 July alongside Mokhali and Motaung.
Block remains in custody at Upington Correctional Services.
He started his 15-year prison sentence for corruption in 2018.
Block and businessman Christo Scholtz were convicted of corruption and were sentenced to 15 years in prison in 2016.
The Constitutional Court dismissed their applications for leave to appeal their sentences and convictions in 2018.
Block and Scholtz were involved in leasing Trifecta office space in Kimberly, Upington and Springbok to the Northern Cape social development department at inflated prices.
Scholtz was a director at Trifecta Holdings, which secured the tender for the leases.
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