The Directorate for Priority Crimes Investigation (known as the Hawks) have made a breakthrough in the KwaZulu-Natal Department of Health’s R32 million fraud case by arresting a third person.
Nandi Msimang, 52, the Director of Mzansi Life Care was arrested on Sunday, July 7, in Sandton in Gauteng.
A warrant for her arrest was issued in May 2023, KZN Hawks spokesperson Simphiwe Mhlongo said.
He said she was arrested by Hawks members of Tactical Operations Management Section based in Head Office and transported to KwaZulu-Natal.
Msimang made her first appearance in the Durban Specialised Commercial Crime Court on Monday.
“She was remanded in custody and the case was postponed to July 17, for a bail application.”
In May last year, in the same case former KZN Department of Health HOD Sibongile Zungu, 60, and Sifiso Mtshali, 53, were arrested on charges of fraud and contravention of Public Finance Management Act.
“It is alleged that during 2013, the KZN Department of Health awarded a 36-month lease to Mzansi Life-Care for the hiring of a mobile clinic. The contract was further extended without following supply chain management process,” Mhlongo said.
“In 2016, the department awarded Mzansi Life-Care a contract for the outright purchase of four mobile clinics to the value of R32 million without following any supply chain management process. The vehicles were registered under Mzansi Life-Care instead of the department.”
Mhlongo said it is further alleged the roadworthy certificates were not obtained by the department and the vehicles were parked for three years.
“It is alleged that Msimang fraudulently removed the four mobile clinics and sold them as a result the department suffered a loss of R32 million.”
A case of fraud was reported at Pietermaritzburg police station and the case docket was allocated to the Durban based Hawks' Serious Corruption Investigation for an intensive probe.
Zungu and Mtshali are out on a warning.
They are expected in court on October 21, 2024 for trial.
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