Corruption Scandal Unveiled at Tembisa Hospital: Analysis for Health Portfolio Committee Meeting
In-depth analysis of a News 24 article exposing corruption at Tembisa Hospital, highlighting anomalous payments to suppliers, inflated prices of surgical supplies, and possible collusion between hospital officials and suppliers. Risks include credibility crisis, legal challenges, and regulatory scrutiny. Proposed solutions involve evaluating progress, implementing solutions, and addressing root causes to restore trust and integrity in healthcare management.
- Corruption scandal
- Tembisa Hospital
- Health Portfolio Committee
- Anomalous payments
- Regulatory scrutiny
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Presentation Transcript
HEALTH PORTFOLIO COMMITTEE MEETING GDoH In-depth Analysis of a News 24 Article on corruption at Tembisa Hospital for the Health Portfolio Committee 19 AUGUST 2022
Purpose To update the reporting on a proposed in- depth analysis of the News 24 article on corruption at Tembisa Hospital.
Risks : PESTLE Social: Economical: Credibility crisis, Leadership styles and Organized criminality Efficiency, Staff morale, Litigation, Decrease in bargaining power Legal: Technological Intrusive and retaliatory legal challenges (PAIA), Assurors and oversight bodies scrutiny Data sharing and security of information, Environment: Management of internal environment Regulations and prescripts
Problem-solving analysis Evaluate progress and outcome Implement the solution Proposed Solution Alternative Solutions Root Causes What is the Problem Perception
What do we know News24 Investigations is pursuing a series of stories into the murder of late Chief Director Financial Accounting, Ms BD. The media house has disclosed that it is in possession of a report authored by the late Ms BD, titled, Report on possible fraudulent transactions identified, dated August 4, 2021. Beyond this report, News24 says it has telephone records and Whatsapp message exchanges between Ms BD and the GDoH s CFO, Ms LM. The media house is currently running a series of articles weekly based on the information within its possession
What is the problem According to News 24 Ms BD was examining anomalous payments to Tembisa Hospital, she was intrigued by an SP of interest, whose CIPC data and profile did not match its primary business enterprise: An events company being a supplier of medical equipment. The CFO is reported to have instructed that payment to the SP be processed despite the late Ms BD s concerns An inference of familiarity is drawn between CFO and SP based on exchanged whatsapp conversation with the late Ms BD The SP is the sole director of two other companies which also sold medical equipment to Tembisa Hospital and were flagged by Ms BD. Reported evidence according to News 24 suggests that SP sold on surgical supplies at vastly inflated prices.
Chronology of events on the matter Chronology Source Gist of matter GDoH point Response 14th Jul 22 News 24 (email) The late Ms B. Deokaran investigation dated 21st August 2021 on fraudulent contracts at Tembisa Hospital Telephone records & Whatsapp messages CD: Comms Copied senior management for assistance in responding Risks: 19th Jul 22 Internal (email) Sub-judice response CFO Reserves the right to await outcome of current investigations by law enforcement agencies Risks: Underestimated the currency of the matter, Was it wise to allow the person of interest to direct GDoH response? News 24 (email) who benefited from the alleged fraudulent contracts at Tembisa Hospital Relentlessness, Screen grab of Spreadsheet with POs of SPs at Tembisa, 20th Jul 22 Interaction with Service Providers CD: Comms For information Risks:
Perception and chronology of events on the matter Chronology Source Gist of matter GDoH point Response 22nd Jul 22 Internal Coordinated GDoH response to the News 24 serialised reporting. News 24 N/A Risks Relentlessness and rising public outrage on the matter 03rd Aug Internal Hospital response to PO of bonded leather furniture CEO: Tembisa Hospital Attempted response to a rising tide on the alleged corruption Risks Relentlessness and rising public outrage on the matter
Perception and chronology of events on the matter Chronology Source Gist of matter GDoH point Response 05th Aug 22 News 24 Tembisa Hospital contract factory: R500k on leather loungers and letterbox barons unmasked. The hospital is reported to have processed 1200 POs in a period of four months. (Contract Factory) CD: Comms Rebuttal of the CEO s explanation and more revelations Risks Relentlessness and rising public outrage on the matter. News24 have archive of information to be released exclusively with each scoop 11th Aug 22 DA (email) DA to picket at Tembisa Hospital for the suspension of the CEO HOD & MEC N/A Risks Relentlessness and rising public outrage on the matter
Perception and chronology of events on the matter Chronology Source Gist of matter GDoH point Response 15th Aug 22 News 24 Love me tender: A couple with no experience in the medical supply industry scored nearly R30 million in contracts from Tembisa Hospital in the space of one month. CD: Comms N/A Risks Relentlessness and rising public outrage on the matter 17th Aug 22 News 24 (email) Underfire CEO calls on ANC PBF connections wrt to the News 24 Article CD: Comms N/A Risks Relentlessness and rising public outrage on the matter
Root Causes Trust deficit Alleged cover-up Non-investment in the initial scoop GDoH and GPG insensitivity Failure read the script and act proportionally Precipitation of previous PR disaster events (i.e. Rahima Moosa) External fermentation of crisis (i.e. I am Movement) Outrage due to perceived inaction and cover-up
Alternative solutions selection Political considerations Integrity and ethical considerations Concomitant actions following eruption of story Stakeholder management Administrative anxiety Communication considerations
Selected Solution Launch an independent investigation to determine The veracity of the allegations against corruption Was there an investigation ordered Why was a random audit commissioned Who authorised it and for what purpose The role of all officials allegedly implicated Advisory to the AO and EA
Implement a solution Administrative processes Integrity and ethical considerations Consequence management where divergence is established Stakeholder management Staff morale (i.e. Fairness, Support and Appreciation) Communication and transparency
Evaluate progress and the outcome Develop an Action Plan linked to the selected solution Focus the Action Plan or make it an addendum to the approved Six-Months Priority Plan Implement a separate reporting Dashboard for CD: M&E and Reporting
