Gospel singer Xolani Jwaga’s events company received more than R1.4 million of the R50 million spent in allegedly corrupt procurement initiated by suspended Tembisa Hospital chief executive Ashley Mthunzi.
Despite a criminal investigation, which started in August, into how Gauteng’s health facilities had been looted, the modus operandi of initiating vanity purchases below R500 000 has continued, with two companies being paid R499 480 each in October for sports facilities at Pholosong Hospital in Tsakane, Ekurhuleni.
Moreover, the splitting in half of contracts, to keep amounts below the R500 000 threshold — purchases over this amount have to be advertised for competitive bids — was one of the ways the so-called Gauteng hospital corruption mafia, which highly placed government sources said was headed by Mthunzi, allegedly defrauded the province’s ailing health system.
The sports facilities, seen when the Mail & Guardian visited the hospital in November, include a football pitch — a gravel patch with weeds growing out of it and goalposts on either side.
Next to the pitch is a netball court which workers at Pholosong said was a “pointless purchase because the hospital is in need of beds and wheelchairs, not sports facilities”.
XPJ Events, which is owned by Jwaga and listed as an events company, and Kgang Tswelopele Construction were the two companies paid in October to create the sports facilities, with the invoices signed by Pholosong acting chief executive Nthabiseng Makgana.
“The netball and football field [transaction invoice] was split into two as initially it was supposed to be advertised for tender because it was [valued] at R1 million,” said a health department source, who asked to remain anonymous.
Makgana replaced Mthunzi when the latter was appointed Tembisa Hospital chief executive in June 2021, two months after he had started in an acting capacity.