The Free State High Court has found company director Johnson Gerald Similo (47) and his company, Siphilile Investments (Pty) Ltd, guilty of fraud and sentenced him on Friday.
The accused are among over 20 suspects, including six companies, seven directors and 13 government officials who were allegedly implicated in money laundering and defrauding the Health Department of R8.7 million.
Following the discovery of irregularities by the Office of the Auditor-General, the Hawks Serious Commercial Investigation launched an investigation in 2015 which led to the arrest of the accused in 2021.
Hawks provincial spokesperson, Lieutenant Colonel Zweli Mohobeleli, said that fraudulent payments were made to service providers between January 2011 and December 2015 under the pretext that the accused were to provide training.
“The payments were done without actual services being rendered. As a result, the Department of Health was prejudiced and suffered a loss of R8,7 million,” said Mohobeleli.
Similo was handed down a five-year suspended sentence on the condition that he is not found guilty of fraud and money laundering during the suspension period.
Mohobeleli said the accused’s company was fined R200 000 and also received a five-year suspended sentence on condition that it is not found guilty of fraud and money laundering during the suspension period.
The remaining suspects were due to appear before the Free State High Court on Monday, of which among the accused are former and current heads of the Health Department.
The Star