By Lehlohonolo Lehana.
President Cyril Ramaphosa has vehemently denied that nepotism was at play in the almost R400 million tenders awarded to his “nephew” Hangwani Morgan Maumela.
On Thursday, Ramaphosa was in the National Assembly to respond to questions from MPs.
DA leader John Steenhuisen asked Ramaphosa about broad-based black economic empowerment (BBBEE) schemes and the impact it has had so far.
State Capture Commission showed that BBBEE has been central to corruption in South Africa. Whether it is the R14 billion PPE corruption in Covid-19 or the billions stolen at Eskom. A recent example, one of your own nephew’s companies scored R381 million from Gauteng hospitals. You are right. It does not benefit the majority. It only benefits ANC-connected cronies.
“It does so at the expense of everyone else, particularly the black South Africans who remain trapped in poverty,” Steenhuisen said
Steenhuisen also referred to Eskom board member Mteto Nyati’s comments on BBBEE.
Responding to Steenhuisen, Ramaphosa said: “You keep saying, my nephew. I don’t even know this gentleman. So, let’s not even get there. I don’t know him.”
Maumela is Ramaphosa’s nephew through the president’s first wife, Hope Ramaphosa.
He is also said to have strong business links to Ramaphosa’s adviser Bejani Chauke.
DA Leader, @jsteenhuisen, questions the President on why he is still clinging to a failed policy. BEE only benefits ANC-connected cronies!
Ramaphosa’s nephew recently scored contracts with R381 million rand while 35 million black South Africans remain trapped in poverty. pic.twitter.com/lw2WftC3PR
— Democratic Alliance (@Our_DA) November 3, 2022
Details of the dodgy transactions were revealed by Health MEC Nomantu Nkomo-Ralehoko in response to questions submitted by DA Gauteng health spokesperson Jack Bloom.
In her answers to the Gauteng legislature last month, Nkomo-Ralehoko said 12 companies – linked to Maumela and his relative Aluwani Titus Maumela – received payments worth R381 million from the Department of Health since April 2019.
A purchase order report, attached as an addendum, showed that Tembisa Hospital ordered 50 flat-bottomed round bowls at a cost of R496 555 on 25 May 2020 from Sunshine Gauteng Trading, registered under Aluwani.
On 27 September 2021, Tembisa Hospital ordered 50 stainless steel kidney dishes at R456 960 from Major Goods Suppliers, registered under Hangwani, the MEC’s response showed.
Nkomo-Ralehoko admitted that “none of the listed companies have SA Health Products Regulatory Authority approval for the sale of medical products” and she blamed “inadequate processes and oversight”.
At various times, some of these companies were not tax-compliant, or were deregistered for a period.
He said from available information, it appears that seven of Maumela’s nine companies operate from a single unit in a Sandton residential estate.
It is very suspicious that none of the hundreds of contracts awarded are over the amount of R500 000 which would require a tender process instead of the CEO signing off on them,” Bloom said.
Meanwhile the South African Health Products Regulatory Authority (Sahpra) is investigating a string of suspicious payments and spending linked to procurement irregularities from Tembisa Hospital.
In a statement released on Friday, Sahpra CEO Dr Boitumelo Semete-Makokotlela said they were working closely with the police and the Special Investigating Unit (SIU) in the probe.
“Sahpra holds public safety as an important cornerstone, as part of its mandate. Any transgression in terms of unethical conduct and compromising public safety will be taken seriously and will be fully investigated.
“Sahpra works alongside law enforcement agencies to ensure that any perpetrators face the consequences of their actions,” Semete-Makokotlela said.
The regulatory body urged industry and healthcare professionals to comply with the Medicines and Related Substances Act when procuring health products.