Lifecare director arrested for R32m fraud
THE Directorate for Priority Crimes Investigation (Hawks) have made a breakthrough in the KwaZulu-Natal Department of Health’s R32 million fraud case by arresting a third person.
Nandi Msimang, 52, the director of Mzansi Lifecare was arrested in Sandton in Gauteng. A warrant was issued in May 2023, KZN Hawks spokesperson Simphiwe Mhlongo said.
He said Msimang was arrested by Hawks members of the Tactical Operations Management Section and transported to KwaZulu-Natal.
Msimang made her first appearance in the Durban Specialised Commercial Crime Court on Monday.
“She was remanded in custody and the case was postponed to July 17, for a bail application,” Mhlongo said.
In May last year, in the same case, former KZN Department of Health HOD Sibongile Zungu, 60, and Sifiso Mtshali, 53, were arrested on charges of fraud and contravention of Public Finance Management Act.
“It is alleged that in 2013, the KZN Department of Health awarded a 36-month lease to Mzansi Lifecare for the hiring of a mobile clinic. The contract was further extended without following supply chain management process,” Mhlongo said.
“In 2016, the department awarded Mzansi Lifecare a contract for the outright purchase of four mobile clinics to the value of R32m without following any supply chain management process. The vehicles were registered under Mzansi Lifecare instead of the department.
“It is alleged that Msimang fraudulently removed the four mobile clinics and sold them, and as a result the department suffered a loss of R32m.”
A case of fraud was reported at Pietermaritzburg police station and allocated to the Hawks.
Zungu and Mtshali are out on a warning. They are expected in court on October 21 for trial.