MEDIA STATEMENT FOR IMMEDIATE RELEASE
Public Interest SA Welcomes Labour Court Ruling on NHLS Corruption Scandal
Johannesburg, Wednesday, 18 September 2024 – Public Interest SA applauds last Friday’s landmark Labour Court judgment, which reinforces the importance of public accountability in South Africa’s fight against corruption. The judgment, which compels former National Health Laboratory Service (NHLS) CEO Joyce Mogale to repay approximately R22 million, highlights the critical role that public procurement transparency and strict adherence to prescripts play in safeguarding public resources.
The case, dating back nearly a decade, underscores the egregious procurement irregularities uncovered at the NHLS, including the illegal appointment of service providers in deals amounting to approximately R200 million. Despite the long road to justice, the NHLS has shown resolute determination in holding those responsible accountable, culminating in this significant court ruling. The civil recoveries, alongside pending criminal prosecutions, reaffirm that public sector integrity is not optional, but a necessity.
"Public Interest SA commends the NHLS for its steadfast commitment to pursuing those responsible for such gross violations of public trust. Corruption is never a victimless crime. It diverts essential resources away from service delivery, disproportionately affecting the poor and marginalised communities," said Tebogo Khaas, Chairperson of Public Interest SA.
The Labour Court ruling, presided over by Judge Connie Prinsloo, found that Ms. Mogale and her former colleague, the late CFO Sikhumbuzo Zulu, had significantly overstepped their authority and failed to fulfil their fiduciary duties. The judgment highlighted the severe consequences of appointing unqualified or incompetent individuals to senior positions, emphasising that public service roles must be filled by those who possess both the skills and ethical compass to uphold the highest standards of governance.
Public Interest SA further echoes the sentiments of NHLS Board Chairperson, Professor Eric Buch, who hailed this outcome as a "victory for governance." The NHLS has since made significant strides in restoring its financial health, and this ruling serves as a stark reminder that accountability in the public sector is essential for preventing such devastating abuses of power from reoccurring.
As the legal and criminal processes continue, we remain hopeful that this ruling will serve as a clear and unequivocal message: those who engage in corrupt activities will ultimately face justice. The moral and legal arc of the universe indeed bends toward justice, even if it takes time.
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Public Interest SA
Bagaetsho Oteng