The Coega Development Corporation (CDC) has instructed its lawyers to issue a letter of demand and instituted a legal action to recover outstanding debt with the Eastern Cape Department of Health (ECDoH) for outstanding fees in excess of R150 million.
The CDC, an implementing agent for the department of health contracted to provide project management of infrastructure planning, development and facilities management.
Given the seriousness of the dispute, that has prolonged for more than two years between the CDC and the ECDoH. One of the key figures is the ECDoH’s Chief Director of Infrastructure – Mlamli Tuswa, who has been implicated in allegations of corruption.
“The impasse has led to the CDC being denied permission to continue with projects awarded to the organisation, such as the building of Community Health Centres. This has negatively impacted on communities who are in urgent need of these services as these projects are therefore not likely to be completed this financial year,” says Coega.
The CDC, having at all times tried to resolve the matter within the prescript of Intergovernmental Relations Act, through having held discussions with various government departments in the province with the requisite authority to resolve the matter, including various Provincial Portfolio Committees has had little success.
Because of the many challenges that amount to an abusive management style causing a high turnover of technical professionals at leadership. The CDC has had to change no less than five (5) programme directors on the ECDoH programme in the past couple of years since becoming an Implementing Agent. As it turned out, all of these changes were necessitated by the difficult and unreasonable requests from the ECDoH Chief Director of Infrastructure – Mlamli Tuswa that were later found to relate to a corrupt and conspicuous relationship between Mr Tuswa and a former CDC Senior employee.
During the course of the investigation against the former CDC employee, further allegations surfaced that implicated Mr Tuswa. The CDC subsequently reported the allegations to the ECDoH and further filed a report with the South African Police Services – Directorate for Priority Crime Investigation (DPCI) for further investigation, which is currently underway.
Given the seriousness of these allegations and interest shown by a number of people in the matter, we are of the view that more evidence regarding the alleged corruption is likely to come out during the investigation by the DPCI, which could implicate more people working on the ECDoH Programmes.
Furthermore, some of the abusive management style relates with the impeachment of individual professional judgement of the respective programme directors. As has been noted, Mr Tuswa does not hold the professional built environment qualifications nor background in the field.
“The CDC has received requests at the last minute with the sole intention to unduly privilege certain Professional Service Providers without due processes followed,” adds Coega.
Further allegations uncovered
The CDC recently announced that it had terminated the services of one of its professional service providers (PSP), DEVA Medicals (Pty) Limited, and also laid fraud and corruption charges at the Humewood Police Station in the Port Elizabeth’s Specialised Commercial Crime Unit after CDC uncovered fraudulent conduct by the PSP.
When these allegations surfaced, the CDC conducted an internal investigation that took approximately five (5) months to complete resulting in the termination of DEVA Medicals (Pty) Limited’s professional services.
The matter was subsequently reported to the a EC DOH representative in charge of this project, Mr Mlamli Tuswa – Chief Director of Infrastructure Development, who practically pleased with the CDC not to terminate and lay criminal fraud and corruption charges against DEVA Medicals (Pty) Limited, as he considered such an act by the CDC as being premature.
However, it came to the attention of the CDC upon pressing on with the criminal charges against DEVA Medicals (Pty) Limited, that a CDC’s former employee, Mr Babini Melitafa who is a personal friend of Mr Tuswa was actually the Project Manager for DEVA Medicals (Pty) Limited providing services to the CDC meanwhile we were under the impression that Mr Melitafa was employed as an Executive by the Eastern Cape Development Corporation (ECDC), raising an obvious conflict of interest, which Mr Mlamli Tuswa as a Director for the ECDoH has not taken issue with.
Furthermore, in a recently reported news broadcast by Alfoa FM – https://www.algoafm.co.za/article/local/89447/ecdc-director-to-challenge-committee-ruling-in-court-
Mr Melitafa allegedly was heard on tape having a conversation with the Chairperson of the Audit Risk and Compliance Committee of the ECDC plotting to get her romantic partner contracts at the ECDC.
We continue to appeal to the members of the public who are aware of fraud and corruption activities against the CDC to report it through our anonymous tip-off hotline 0800 007 035 or email fraud@kpmg.co.za.
Alan Straton
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