Former DG in court for R86 million hospital tender fraud

FORMER North West Director General, Dr Lydia Sebego was arrested in connection with over R86 million hospital tender fraud.

The charges relate to her tenure as the head of department in the North West Department of Health.

Sebego and two others were granted bail in the Molopo Magistrate's Court in Mmabatho on Friday.

The case against Sebego, 63, Vuyo Mbulawa, 54, chief director at the North West Department of Health, and Lotwane Mabe, 69, a service provider, was postponed to January 31, 2024 for the tracing of the remaining suspects.

"The court granted Sebego R10,000 bail, Mbulawa R20,000 and Mabe R100,000.

“The trio were warned not to have any direct or indirect contact with the State’s witnesses and complainants," said National Prosecuting Authority (NPA) spokesperson in North West division, Henry Mamothame.

He said they were further instructed to alert the investigating officer of any travel that they would undertake and the period thereof.

The Directorate of Priority Crime Investigations (known as the Hawks) arrested the trio on Thursday, in Mahikeng. Sebego is facing two charges of Contravening the Public Finance Management Act, Mbulawa is facing 10 charges of fraud, while Mabe is charged with six counts of fraud.

"During the years 2008 to 2009 the North West sought to build two hospitals in Ledig (Moses Kotane Hospital) and Vryburg (Joe Morolong Hospital). A tender was subsequently awarded to the company MR Property (Pty)Ltd,

belonging to Mabe, as well as another company belonging to another suspect who is yet to be arrested," Mamothame said.

Service Level Agreements were signed between the two companies and their directors on services that needed to be rendered to the two hospitals.

The services were, however, not rendered, while these companies reportedly submitted fraudulent invoices which were paid by the department after being authorised by Mbulawa.

"This allegedly led to a loss of over R86 million to the Department of Health. The State’s evidence further reveals that Sebego signed the Service Level Agreements, while she knew that the two companies were not compliant and did not meet the requirements," he said.

Sebego was appointed as the Director General in the North West provincial government in July 2015.

She resigned in 2018 after more than 30 years of public service.