Gauteng health wastes R16m on security contracts

Gauteng Department of Health
March 10, 2015

The Gauteng Health Department has wasted R16.2 million by choosing the most expensive security contract for 6 hospitals.

This is revealed in documents I have obtained through an application under the Promotion of Access to Information Act.

I asked for the prices given by all the competing bidders for all 37 hospitals in Gauteng, but have so far only received for 6 hospitals.

The shocking thing is that the most expensive security company was chosen for each of these hospitals.

The worst case is that of Charlotte Maxeke Johannesburg Academic Hospital, where Mabotwane Security Services was chosen over Guard 4 Sure Security Services, despite being R6.2 million more expensive for a two-year contract.

The department now pays R25.6 million each year to guard this hospital Instead of paying R22.5 million for the cheapest quote.

The other hospitals are as follows:

  • Helen Joseph Hospital – Potlako got the contract for R13.3m a year, R1.6m more than Tshireletso’s R11.7m bid.
  • Chris Hani Baragwanath – Mafoko got the contract for R22m a year, R1m more than Guard 4 Sure at R21m.
  • Tembisa Hospital – Tshireletso won for R6.1m a year, R900 000 more than Guard 4 Sure’s R5.2m bid.
  • Steve Biko Academic – Born to Protect won for R15.5m per year, R800 000 more than R14.7m by Guard 4 Sure.
  • George Mukhari Hospital – Vimba won for R12.5m per year, which is R700 000 more than R11.8m by Guard 4 Sure.

I am puzzled that Guard 4 Sure was the cheapest quote for five out of the six hospitals, but was only awarded one contract.

According to the Department “all contracts were awarded to different sites regardless of price” and the reason given elsewhere for not giving to the cheapest contractor is that the company was “awarded another site”.

This is very poor practice that contravenes treasury regulations concerning value for money.

It is further evidence that there was possible corruption in awarding these contracts. Last year, Mr Abey Marokoane, Chief Director of Risk Management and Internal Control, was suspended for alleged corruption concerning hospital security contracts.

I estimate that more than R50 million has probably been overspent on the two-year contracts for all 37 hospitals in Gauteng by not choosing the cheapest contract.

This is money that could have been spent to provide better care in our overstressed hospitals, but is instead blown carelessly away on over-priced security contracts.

I have referred this to the Auditor-General for further investigation.

 

Media enquiries:

Jack Bloom MPL

DA Gauteng Shadow MEC for Health

082 333 4222

 [Image source]

One Comment

  1. Ulwazi at dr Yusuf dadoo hospital does not pay salaries on time, yet they employ many more people than previous supplier.

    Reply

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