Charges laid against former Gauteng Health CFO

The Democratic Alliance (DA) in Gauteng has laid criminal charges today against Lerato Madyo, the Gauteng Health Department’s former Chief Financial Officer (CFO).

DA Gauteng Shadow MEC for Health, Dr Jack Bloom, cited her failure to act on slain whistleblower Babita Deokaran’s report on possible fraudulent transactions at the Tembisa Hospital.

Shortly before her assassination, as uncovered through reporting by News24, the late Gauteng Health Chief Accountant and mother sent:

“Morning CFO, I am just worried that the guys in Tembisa are going to realise we are onto something. Our lives could be in danger.”

Madyo, replied: “Morning Babita, I have requested the HOD’s grant approval for the investigation.” But this was a lie. No investigation was ever launched. The payments were released after her death.

A group of hitmen took Deokaran’s life in an execution-style hit in Mondeor, Johannesburg, after dropping her teenage daughter off at school.

“She was a loving mom, daughter, sister, and aunt. None mattered, and they silenced her at all costs,” said Devoshum Moodley-Veera from the Active Citizens Movement at the launch of Jeff Wicks’ new book The Shadow State: Why Babita Deokaran had to die.

Madyo was a central figure in the Tembisa Hospital corruption scandal, which involved the looting of over R2 billion in public funds through irregular contracts and shell companies.

Investigations from Wicks initially froze the R104 million in payments to suspicious companies that Deokaran flagged, but later allowed them to be paid.

Reports note that she misled Deokaran about initiating a full forensic investigation into suspicious transactions totaling R850 million.

Instead, a limited internal audit was conducted, which was quickly halted, buried for over a year, and its recommendations ignored.

“The Gauteng Health Department dragged out her disciplinary enquiry on 13 misconduct charges for two years,” said Bloom.

“Scandalously, they allowed her to resign shortly before a finding was to be made, so she walked off with her pension and R3 million paid to her while she was suspended.”

He said that Madyo is “a chief suspect amongst the small number of those who could have tipped off the mastermind behind Babita’s murder.”

Now, Madyo goes under the name of Daniella Molapo.

The charges

The DA has charged her with multiple alleged offences, including:

• Violating Sections 34 and 21 of PRECCA for failing to report corruption or conspiring to commit an offence;
• Contravening Section 18 of the Criminal Procedure Act for attempting or conspiring to commit fraud;
• Breaching the PFMA, including:
  • Section 38: failing to report unauthorised or wasteful expenditure and maintain effective financial controls;
  • Section 51: negligence in ensuring fair and transparent procurement;
  • Section 45: failing to uphold financial management, leading to wasteful or irregular expenditure;
  • Section 81: financial misconduct by wilfully or negligently neglecting assigned duties.

“We will not rest until all those implicated in the theft of more than R2 billion from Tembisa Hospital are charged and convicted in court,” said Bloom.

“This includes the kingpins of the various syndicates who looted public money with fake companies, and most important of all, the mastermind who ordered Babita’s murder.”