Heath unit sets out Sarafina II charges

By Peter Dickson

EAST LONDON -- The Heath SIU yesterday disclosed for the first time the charges formulated against Health Minister Nkosazana Zuma, and the roleplayers in the R14-million Sarafina II scandal who were served notices of civil proceedings in a five-day Special Tribunal.

The other defendants are Sarafina II producer Mbongeni Ngema, the Committed Artists Theatre Company, former health support services chief director Albert Badenhorst and former health director-general Olive Shisana who asked the SIU to recover an outstanding amount of R6m for the Health Department.

The SIU said yesterday that a contract was concluded between Mr Ngema and the Health Department whereby R14m would be paid for the production and staging of Sarafina II. The contract was cancelled in 1996, when R10m had been paid, after irregularities had been identified.

In February this year, after protracted and unsuccessful negotiations between the department and Mr Ngema's attorneys, the SIU recovered R4m in vehicles and equipment which were returned to the department.

The unit said yesterday the transaction, which required normal tender procedures, was "invalid" because:

lIt was never submitted to the Tender Board and the normal procedure inviting tenders was not adopted;

lThe procedural departmental tender committee and the State Tender Board never awarded a tender;

lCommitted Artists has no legal status, and could not become a party to a contract;

lMr Badenhorst, who signed the contract on the department's behalf, was not authorised to do this, and the department therefore never became a party to it;

lNeither Dr Zuma nor Dr Shisana agreed to enter into the contract and they never gave instructions to Mr Badenhorst; and

lThe contract's contents, especially the agreed price, was against public interest and policy.

The SIU said that should the Special Tribunal find that the contract was valid, it also alleges breach of contract by Mr Ngema.

The award-winning playwright is alleged to have spent more than R600000 -- he has already repaid R441411 and owes R172042 -- "on equipment at his private residence which was not provided for by the contract".

He also, contrary to the contract and without authorisation, allegedly loaned close to R246 000 "to individuals" which have not been repaid; leased and paid R78768 rental of two cars plus petrol, insurance, maintenance and repair; bought an Opel Astra for R27203 in breach of the contract; and breached it further by paying chartered accountants Ernst and Young R15300.

The unit alleges further that "by reason of serious problems with the administration of the finances of the project, the department appointed an employee to supervise the finances and expenses incurred. The amount paid for this service was R91 063".

Mr Badenhorst is a defendant "on the basis that without proper authorisation he signed the contract with Mr Ngema, and that on various grounds of negligence he is liable for the damages suffered" by the department.

Dr Zuma allegedly "failed to take reasonable and necessary steps to determine and/or ensure" if adequate funds were available for Sarafina II and "failed to ascertain and to ensure" if the production costs fell into the ambit of financing agreements between the department and the European Union.

Dr Shisana "is sued on the basis that she, in her capacity at the time as accounting officer, failed to recover any losses suffered".

Since being served notice last week, the defendants have 20 court days to notify the Special Tribunal of intentions to defend. A trial date will be set once the pleas have entered.

"However, a pretrial conference must be held at least 20 days prior to the date set down," the SIU said. "It is envisaged that the trial will last for five days."