R200m tender fraud accused get bail

Pietermaritzburg - Seven accused, including former government officials, linked to R200m tender fraud in two provinces were released on bail by the Pietermaritzburg Magistrate's Court on Wednesday.

They were released on bail of either R30 000 or R50 000.

The first accused was Sipho Shabalala, suspended head of Ithala Development Finance Corporation and former head of Treasury in the KwaZulu-Natal government.

His wife, Ntombi, a director of Skyros Medical Suppliers and a 50% shareholder with her husband in another company, was also allegedly involved in the scams.

Uruguayan Gaston Savoi, chairperson of Intaka Group, was accused of colluding with health department officials to fraudulently secure tenders for R200m in KwaZulu-Natal and Northern Cape.

It was alleged that he inflated prices and paid kickbacks.

Busisiwe Nyembezi, a former head of KwaZulu-Natal health, was allegedly involved in circumventing procedures so that Intaka supplied equipment at a grossly inflated price.

Durban attorney, Sandile Kuboni, was accused of laundering more than R1m, allegedly the proceeds of crime, which was paid into his firm's trust account.

This concealed or disguised the offence.

It was alleged that this sum was agreed upon by Intaka and Sipho Shabalala and was paid to Kuboni's firm.

Another former head of KwaZulu-Natal health, Yoliswa Mbele, allegedly wilfully or negligently failed to ensure that procurement procedures were fair, equitable, competitive and cost-effective.

She allegedly ignored warnings of tender shortcomings and defects in oxygen units bought for hospitals.

Regional magistrate Chris van Vuuren adjourned the case to December 2.