National Treasury, SIU called upon to stop 'R100m heist' at EC health

The notorious Eastern Cape health department is having an internal turmoil over head of department Dr Rolene Wagner, who is pushing to process R100-million of the R200-million to a private company for a disputed settlement.

- By Mawande AmaShabalala

So determined is Wagner to make the payment she has since fallen out with department acting CFO Gcinikhaya Mhlanga, who, along with all procurement officials, is refusing to rubber stamp the payment.

It took MEC Ntandokazi Capa to intervene to stop the spirited Wagner, the most senior and the longest-serving official in the department having started in 2021 from bulldozing her subordinates.

Capa has since called for the SIU to investigate the saga.

The drama relates to a public private partnership (PPP) agreement the department entered into with Nalithemba Pty Ltd in 2007 for construction of Settlers and Port Alfred Hospitals. The entity was also expected to commission various items of equipment, manage the facilities and provide services for private patients.

However, due to the financial constraints, the department prematurely terminated the PPP agreement on November 9, 2020, following an order of the High Court on November 3, 2020. But Nalithemba was having none of their nonsense, and dragged the department to court in 2021, a lawsuit it did not defend. Nalithemba got a default judgment, but the two parties, through Wagner, reached a settlement agreement this year.