The first two defendants who are charged with, among others, fraud, corruption, and money laundering of almost R500 million over the construction contract of the controversial psychiatric hospital in Kimberley, were released on bail on Tuesday, 23 May, in the Magistrates’ Court in the city.
Their next appearance will be on 11 July when they will appear with an accused who is currently serving a prison sentence in Upington.
Patience Mokhali (65), former provincial head of the Department of Public Works and Roads, appeared with Tshegolekae Motaung (59) and his company, Babareki Consulting Engineers, after they were arrested earlier the morning.
Mokhali, who is also charged with breaches of the Public Financial Management Act, was head of the department when former ANC leader John Block was the MEC for the department.
Block is currently serving a 15-year prison sentence after being found guilty of corruption. He used his influence to award leases for government buildings at improper sums to the Trifecta Company.
Adv. Prosecutor Boitumelo Sediti told the court that there is one more accused in this case, but since this accused is currently imprisoned, he could not appear at this hearing. The accused in question will appear in court on 11 July with his alleged accomplices.
Nomthandazo Mnisi, Hawks spokesperson, says the allegation is that in 2003 the relevant department, together with the Department of Health, entered the contract of R290 million to build the hospital. Some of the buildings apparently had to be demolished after construction, and the contractor was paid R420 million without any work being done.
“The contractor was bankrupt. He was not competent to deliver the services. No legal purchase requirements were followed. The work was stopped and the building complex unfinished. It still costs money to maintain.”
The construction costs amounted to almost R2 billion over ten years, and opposition parties have demanded action over the years.
Mokhali is retired and lives in Kimberley. She has health problems and suffers from poor memory. She was granted bail of R10 000, and Motaung bail of R50 000. Motaung lives in Johannesburg and has his own company.
