Gupta-linked fraud case postponed to next year

File picture: Pixabay

File picture: Pixabay

Published Aug 11, 2023

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The Gupta-linked Mediosa fraud case against the former head of the Department of Health in the North West, Dr Andrew Lekalakala, was postponed to February next year for admissibility of evidence.

The North West High Court postponed the case to February 12, 2024, for further trial.

"The matter had to be adjourned following an objection by Lekalakala’s attorney on evidence that was presented by the deputy director general of the North West Department of Health, Konred Motlhabane," said National Prosecuting Authority spokesperson in the North West division, Henry Mamothame.

He said Motlhabane testified on the proceedings of the portfolio committee on health at the North West Provincial Legislature.

"The court subsequently ordered for the State and the defence to submit heads of argument by August 18, 2023; supplementary heads by August 23, 2023; and virtual arguments to be made on September 4, 2023, for the court to make a ruling on the admissibility of the evidence," he said.

Lekalakala is facing two charges of fraud, one of contravening the Public Finance Management Act (PFMA) and another, in terms of the Prevention and Combating of Corrupt Activities Act (PRECCA).

The charges relate to the alleged fraudulent awarding of a contract for mobile clinics to Mediosa Health Pty (Ltd) in February 2017, a company linked to the Gupta family.

The mobile clinics were meant to serve rural communities in the North West.

A similar project was already being implemented in the Free State province, and Lekalakala, as the then accounting officer, allegedly decided to participate in the same contract and elected to apply the treasury regulations that allow for participation in an existing contract arranged by another organ of State with the same contract terms.

It was, however, discovered that the awarding of this contract did not comply with Treasury regulations, and the project was not budgeted for.

"The accused also falsely indicated, during a management meeting, that the service by Mediosa Health was a national Department of Health initiative that would be rolled out to other provinces. He further lied that there was compliance with the Treasury regulations," Mamothame said.

Mediosa Health allegedly received an upfront payment of R30 million, and Lekalakala is alleged to have received gratification in the form of a trip to India, accompanied by his spouse and his associates.

"The State also intends to prove that the service level agreement was signed on this trip and not at the Department of Health offices," he said.

The former head of department at the Free State Department of Health, Dr David Motau, testified that permission was not granted to Lekalakala to participate in the programme, as required by Treasury regulations.

Deputy director general of the North West Department of Health, Konred Motlhabane, testified that the benchmarking trip to India, which was meant to guide the department on the functionality of mobile clinics, turned out to be a leisure trip.

Motlhabane told the court visits were only made to tourist sites, which had nothing to do with the mission.

Motlhabane would continue with his testimony next year when the matter resumes in court.

Lekalakala is still out on R5,000 bail, and it was extended.

Mamothame said Lekalakala's attorney indicated that he would be undertaking a business trip overseas, which the state did not oppose, as it was not part of his bail conditions not to travel abroad.

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