Gupta linked R 30million fraud case against Dr Lekalakala commences

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Former North West Health departmental head Dr Andrew Lekalakala is still out on R 5000 bail while his fraud continues at the high Court in the same province.

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).

It is alleged that Lekalakala is one of the senior government officials who, in the past used their powers to fraudulently award tenders to Gupta linked companies without following proper procedures.

Henry Mamothame from the NPA said that 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 service 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.”

As a result of the said fraudulent awarding, the Department lost R 30million to which Lekalakala in return got rewarded with a trip to India together with his wife and associates.

Mamothame said that the state intends on calling several witnesses and they will also prove that the date of the trip and the signing of the contract is not far apart and the signing was not done at the offices.