Six more suspects were arrested in the construction case of the Kimberley Mental Hospital in which the original budget of R297 million ballooned to well over a billion rand on its completion.
Five of the suspects made a brief appearance before the Kimberley Magistrates’ Court on Wednesday, 28 May, whilst a sixth suspect made an appearance in court in Cape Town.
They were arrested on Wednesday morning by members of the Serious Corruption Investigation team of the Directorate for Priority Crime Investigation (Hawks). The team executed J50 warrants of arrest in Kimberley and Cape Town, respectively.
Lt. Col Tebogo Thebe, Hawks spokesperson, said they were charged with fraud, corruption, money laundering and contravention of the Public Finance Management Act.
They are:
- former HOD of the Department of Roads, Transport and Public Works, Motlalepule Elia Selemela;
- former acting HOD Ruth Palm;
- former directors of Babereki Consulting – Laurencia Crause, Louis Adriaan van Niekerk, Edward Charles Petzer and Winston Modisa Moyahi. Petzer appeared in court in Cape Town.
Thebe said it is alleged that during August 2005, the former HOD of the Department of Roads, Transport and Public Works, Selemela, awarded a contract for construction of the new mental hospital to be built in Kimberley to Vista Park/Joh Arch Investment. The project was set to commence in September 2005.
Furthermore, the former acting HOD of the same department, Palm, allegedly approved a contract amounting to R36 million without following proper procurement procedures.
The original budget for the project was R297 million. However, due to delays owing to poor workmanship, demolition of certain structures for remedial purposes, and the change of contractors, the budget ballooned to well over a billion rand on the completion of the project.
The former directors of Babereki Consulting were charged with fraud, money laundering and corruption, as they received R51 million from the department, whilst fully aware they had no contract with the department.
All the accused were released on bail ranging from R2 000 to R10 000. All six are expected back in the Kimberley Magistrates’ Court on Monday, 2 June, where they will join their co-accused in the main case.
Former police officer arrested for fraud
In another unrelated case, also on Wednesday, 28 May, a former police officer was arrested in Upington.
Members of the Hawks’ Serious Corruption Investigation team executed a J50 warrant of arrest on former police officer, Lt. Col Pieter Andries Nel. The arrest was executed at his residence in Upington.
According to Thebe, Nel was serving with the South African Police Service in Upington as head of Financial Services in the ZF Mgcawu District. Nel was tasked with authorising payments to service providers, as well as authorising subsistence and travelling payments of police members within the Upington district. It is alleged that from 2022 until 2024, Nel created and authorised false payments estimated to be over R1,2 million. Allegedly, it was paid into his personal bank account.
The former police officer is charged with fraud, money laundering, as well as contravention of the Public Finance Management Act 1 of 1999.
Nel made a brief appearance before the Upington Magistrates’ Court. The matter was postponed to Thursday, 29 May, for a formal bail application.
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