Millions awarded through quotation system allegedly exploited by syndicates
Fresh allegations have surfaced connecting the suspended head of the Gauteng Department of Health, Lesiba Malotana, to a company that received approximately R10 million in contracts from Tembisa Hospital. The revelations have intensified calls for decisive action against corruption within the province's beleaguered healthcare system.
DA shadow MEC for health Dr Jack Bloom revealed that the firm KGDEE Mash (Pty) Ltd was awarded contracts totalling around R10 million between August 2020 and August 2022. The details were disclosed in a written reply from Health MEC Nomantu Nkomo-Ralehoko to a formal question posed by Bloom.
The contracts in question covered medical consumables and minor infrastructure projects, all procured through the request for quotations (RFQ) mechanism. Under this system, a hospital head may authorise purchases below R500 000 provided that at least three quotations are obtained. Bloom contends that criminal syndicates have systematically manipulated this process by channelling work to front companies.
Adding to the controversy, Bloom stated that KGDEE Mash is reportedly not registered with the South African Health Products Regulatory Authority (Sahpra), which is a mandatory legal requirement for any entity supplying medical products in the country.
Whistleblower's findings and SIU documents deepen concerns
The connection between KGDEE Mash and Malotana emerged through documents from the Special Investigating Unit (SIU) that came to light during Malotana's legal challenge against his suspension. Those records point to financial transactions between Malotana's own firm, Pulse Management Consultants, and Cedmas Funeral Services — an entity directly tied to KGDEE Mash. Notably, KGDEE Mash was among the companies flagged as suspicious by murdered whistleblower Babita Deokaran. The SIU classified Malotana as a "high risk" individual owing to alleged misrepresentation and a potential conflict of interest.
Malotana was suspended in October last year after a lifestyle audit raised serious red flags warranting further investigation. Despite the gravity of these findings, he was subsequently transferred to a senior role within the Department of Cooperative Government and Traditional Affairs (Cogta) — a move that has drawn sharp criticism.
Bloom directed his ire at both Gauteng Premier Panyaza Lesufi and MEC Nkomo-Ralehoko, describing Malotana's redeployment as a grave lapse in judgement and demanding his removal from the Cogta post.
"Large-scale intervention is needed to root out corruption in the health department."
Bloom urged Lesufi to accelerate disciplinary proceedings against Malotana and to ensure that competent, ethical professionals are placed in charge of turning around the province's struggling hospitals. The department has yet to issue a formal response to the latest demands.
Gauteng's public healthcare system serves millions of residents who depend on state hospitals for essential medical services, making any diversion of funds through fraudulent procurement directly harmful to patient care and service delivery. The alleged exploitation of the quotation system highlights systemic vulnerabilities that criminal networks can target, while the connection to murdered whistleblower Babita Deokaran underscores the personal dangers faced by those exposing corruption. The outcome of disciplinary proceedings could signal whether accountability measures within provincial government are strengthening.
