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Dikos worked behind my back - Bandile Masuku

Piet Mahasha Rampedi|Published

Gauteng Health MEC Dr Bandile Masuku Gauteng Health MEC Dr Bandile Masuku

Johannesburg - Embattled Gauteng Health MEC Dr Bandile Masuku has told the Special Investigating Unit (SIU) investigators that the Dikos abused his trust by bidding for a R139 million Royal Bhaca personal protective equipment (PPE) contract in his department without his knowledge, sources said.

According to people familiar with Masuku’s submission to the unit this week, the suspended ANC provincial executive committee (PEC) member said businessman Thadisizwe Diko and his wife, President Cyril Ramaphosa spokesperson Khusela Diko, worked with senior officials behind his back.

He said they failed to disclose Royal Bhaca had been replaced by Ledla Structural Development when he confronted them about the controversial contract.

Masuku and the Dikos were grilled by Gauteng SIU investigators at the unit’s head office in Pretoria on Friday on their roles in the Royal Bhaca contract, fraudulent procurement and conflict of interest.

Sunday Independent has been reliably informed that Masuku told the investigators he was unaware of the Royal Bhaca contract until May, when he demanded a list of all contracts, including cancelled ones, following allegations a contractor who bought five cars for cash had received PPE contracts in Gauteng and fronted for Premier David Makhura. This came after Hamilton Ndlovu posted pictures of his luxury cars on social media.

Sources said Masuku told investigators the Dikos never informed him they had tendered or received contracts from the Gauteng health department even out of courtesy, since it was his political space and their involvement was poised to create a conflict of interest because of his close relationship with Khusela.

He is said to have told the SIU that former chief financial officer Kabelo Lehloenya had worked closely with the Dikos and also failed to inform him about the Royal Bhaca contract. Instead, she wrote an email to Thandisizwe informing him that the contract had been cancelled and subsequently issued another purchase order to Ledla.

“The MEC told the SIU that his first reaction was disappointment. He felt the element of trust, if his friend would do a bid in his department, at least (have the) courtesy to inform him. If they were friends, there would be perceived conflict of interest. He then said he then interacted with her (Khusela). He expressed it and she said she didn’t know that the husband had done it. He said she expressed her regret and apologised for having put him in that situation,” the source said.

Another source said Masuku told the investigators Lehloenya failed to inform him and head of department Professor Mkhululi Lukhele when she picked up irregularities involving Royal Bhaca.

“He said the second point of disappointment was when officials picked up that, the CFO or whoever is involved, (is) supposed to inform the MEC, maybe the HOD first, to say we are picking up this company and there is a conflict of interest. But he was not given that opportunity at every point. Even when they did their cancellation, they didn’t bring it to his attention.”

The Sunday Independent this week obtained a copy of an email, dated April 30, 2020, in which Lehloenya informed Diko that “the attached commitment letters have been cancelled by the Gauteng Department of Health”.

Lehloenya declined to comment yesterday and referred all enquiries to the Gauteng department of health.

The Sunday Independent reported two weeks ago that Jonathan Maake, director of PPE manufacturer Mediwaste, told the SIU in an affidavit Ledla director Rhulani Lehong-Mboweni called Lehloenya in his presence to get assurance Royal Bhaca would be paid.

Masuku is also said to have told investigators he did not ask for proof of contract cancellations until he was summoned to appear before the Gauteng legislature about procurement irregularity cancellation. “At that stage, officials told me verbally that the contract had indeed been cancelled.”

Masuku did not take it further, sources said, because the SIU was already probing the contracts and he wanted to give them space to uncover who got what contract and how.

In her submission, Khusela is said to have corroborated Masuku, saying neither he nor his wife Loyiso Lugayeni-Masuku had a role in awarding the Royal Bhaca contracts.

Sources said she told the SIU investigators Masuku was not aware of the commitment letter received from the department. Khusela is said to have insisted no evidence had been produced by those making the insinuations. The presidency spokesperson added that her close comradeship and friendship with the Masukus, and the fact that she was a bridesmaid at their wedding had no material basis.

Khusela apparently said any allegation that Royal Bhaca got the contract based on her friendship with the Masukus was hearsay. She and her husband failed to respond to requests for comment yesterday.

SIU spokesperson Kaizer Kganyago declined to comment on the specifics of the submissions but said the unit was making progress.

“As far as all the cases that relate to PPE we are progressing very well, and are readying ourselves to give a report to the president in three or four weeks from now,” Kganyago said.

The Sunday Independent