More suspects arrested in Northern Cape mental hospital corruption scandal
The accused appear in the Kimberley Magistrates’ Court following their arrest in connection with the Northern Cape mental hospital corruption case.
Image: Supplied
Additional suspects, including senior government officials and private consultants, appeared briefly in the Kimberley Magistrate’s Court on Wednesday in connection with a long-running corruption case tied to the construction of a mental health hospital in the Northern Cape.
Among those arrested were the former Head of the Department of Roads, Transport and Public Works, Motlalepule Elia Selemela, former acting HOD Ruth Palm, and former directors of Babereki Consulting Lorencia Crause, Louis Adriaab Van Niekerk, Edward Charles Petzer, and Moyahi Winston Modisa.
The arrests, executed by the Hawks’ Serious Corruption Investigation team, followed J50 warrants issued in both Kimberley and Cape Town.
The suspects face charges including contravention of the Public Finance Management Act, fraud, corruption, and money laundering.
“It is alleged that during August 2005, the former HOD of Department of Roads, Transport and Public Works, Mr Motlalepule Elia Selemela awarded a contract for construction of new mental hospital to Vista Park/Joh Arch Investment and the project was set to commerce in September 2005,” said Hawks spokesperson Lieutenant Colonel Tebogo Thebe.
Thebe added that acting HOD Ruth Palm later approved a R36 million contract unlawfully.
“The original project budget was R297 million, but delays caused by poor workmanship, demolitions, and contractor changes saw costs balloon to over a billion Rand,” said Thebe.
Further investigations revealed that the accused directors of Babereki Consulting allegedly pocketed R51 million from the department despite having no valid contract.
All suspects were released on bail ranging between R2,000 and R10,000.
They are expected to reappear in court on June 2, where they will join their co-accused in the main case.
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