NW health boss still at his desk despite criminal case

Pretrial hearing in fraud case against head of department due to start tomorrow

● The head of the North West health department remains at his desk nearly a year after being charged with fraud and contravening the Public Finance Management Act (PFMA) in connection with a R470m contract that he awarded to a joint venture that was in liquidation.

Obakeng Mongale, in his previous post as head of the provincial department of public works, awarded the contract for work on the Brits District Hospital to Ilima Projects-Tsoga Developers in 2008. It was cancelled two years later due to shoddy workmanship, and another company had to complete the work for an additional R4m.

Mongale, who was appointed head of the provincial health department in April 2021, is also at the centre of a separate legal imbroglio — Bagale Consulting is suing the health department for R36m in the Mahikeng high court over a disputed hospital contract Mongale awarded the company while he was still at public works.

Bagale Consulting, which is demanding payment of outstanding professional fees, says it was appointed in 2008 as project manager for the planning, commissioning and construction of Lichtenburg Hospital, which was to replace the ageing General De la Rey Memorial Hospital and also serve patients from the decommissioned Thusong Hospital about 30km away.

However, in 2022 the health department appointed MIB Infrastructure Development to do the same job for R27.7m. The only difference between the two contracts was that Bagale’s terms stipulated 150 beds in the new facility whereas MIB’s was for 120 beds.

In October last year, Bagale director Dennis Modipa said in a letter to the department of health: “The fact that Bagale Consulting is still in possession of the site means that the department cannot engage any other service provider to render any construction-related services to upgrade or do additions to the existing hospital whilst Bagale Consulting’s contract and appointment has not been cancelled or terminated …

“We wish to remind the department that our team has had dedicated resources allocated to our project and we have had to keep incurring costs by paying salaries to our professional staff,” said the letter, which is among papers filed in the court case. “These costs would obviously be factored in to be recovered as part of the formula that calculates termination costs.”

According to Bagale’s court papers, the provincial government paid it about R30m for architectural designs and for securing the site, but stopped communicating with it about the project in 2016.

The hospital project was transferred from public works department to the department of health in February 2010 and approved by Mongale’s predecessor at the department, Lydia Sebego.

Sebego is also facing two charges of contravening the PFMA. She is on R10,000 bail and charged with corruption in the awarding of an R86m tender for the construction of the Moses Kotane and Joe Morolong hospitals.

Mongale said the department could not comment on the Bagale litigation because it was now before the courts.

“The questions you’re raising lie at the very centre of this case. This matter remains sub judice. We cannot respond to your questions without possibly impacting on our defence in this regard,” Mongale said.

The Sunday Times understands that North West health MEC Sello Lehari, who took office in July, has been briefed on the case and that meetings were held with Modipa to explore a possible out-of-court settlement. “The MEC has just arrived in the department and is still going through all the reports, including reviews of all cases affecting employees as well as other personnel in the management structure,” the department said in a statement.

“However, the MEC is careful not to be quick to take action on cases that are still in the courts. Both the Bagale matter and Mr Mongale’s prosecution are therefore sub judice. Thus, the department is unable to comment further until they are finalised by the courts.”

However, the state attorney’s office has written to Modipa to ask him to propose a settlement figure. “We have been instructed to advise you that the door for settlement negotiations remains open,” the state attorney said in a letter to Modipa’s lawyers.

“Our client is prepared to engage your client with regard to consensual termination of your client’s contract. In light of the instruction … you are kindly requested to disclose to us the amount your client will claim should the contract be terminated with costs.”

The costs to build the hospital were estimated in 2016 to be about R249m, but in December 2021 the then health minister, Joe Phaahla, said in reply to a question in parliament that the project would cost at least R1.3bn.

The criminal charges Mongale is facing relate to a payment of R57m that he is alleged have authorised for the Ilima-Tsoga joint venture.

Separate corruption charges have been brought against Andrew Lekalakala, a former head of the North West health department, in connection with a contract for mobile clinics awarded to Mediosa Health, a Gupta-linked company, which received an upfront payment of R30m. Lekalakala is alleged to have received a trip to India as a reward.

Sivenathi Gunya, spokesperson for the National Prosecuting Authority, said Lekalakala, who is out on bail of R5,000, would be back in court on December 1.

A pretrial hearing for Mongale would begin tomorrow, and Sebego had appeared in the Mmabatho high court this week, Gunya said,