Almost 20 years after the Northern Cape Department of Health was defrauded, one of the accused has been sentenced.
Gaston Savoi, 71, pleaded guilty in the Pietermaritzburg High Court on Thursday to four counts of fraud and six counts of corruption.
The National Prosecuting Authority (NPA) in a joint statement with the Directorate for Priority Crimes Investigation (known as the Hawks) said the fraud was committed in the Northern Cape and KwaZulu-Natal between the period of 2004 and 2007.
The Hawks said the charges relate to the provision of water purification units (Watakas) and self-generating oxygen units (Oxyntakas) which were provided by Intaka Holdings (a company owned by Savoi) at inflated prices to the Department of Health in Northern Cape and the Department of Local Government, Housing and Traditional Affairs in KZN.
This cost the government over R100 million.
Explaining the merits of the case NPA spokesperson Natasha Ramkisson-Kara said Savoi entered into a Section 105A plea and sentence agreement.
“Dr Savoi was sentenced to a fine of R5 million or 10 years imprisonment and a further 10 years imprisonment which has been suspended for five years.
“Importantly, the court also made a confiscation order for R60 million in favour of the State.”
She said the court further ordered that he pays a sum of R15 million as a contribution to the costs arising from the curatorship in the Asset Forfeiture Restraint Application proceedings.
The NPA said the plea and sentence agreement was used to bring to an end this drawn-out matter which has been delayed due to numerous interlocutory applications by the accused over the years.
“The NPA considered many factors as part of its strategic case management approach, the most important being the accused agreeing to cooperate and assist the State in its further proceedings against other government officials.”
Ramkisson-Kara said in 2022, following a separation of trials, Savoi’s co-accused Dumisani Sipho Derrick Shabalala was sentenced to 15 years of jail.
He was convicted of fraud, corruption, money laundering, and contravention of the Public Finance Management Act (PFMA) to the tune of over R1 million.
“The NPA believes that this guilty plea agreement is the most effective way of bringing this long-standing and serious matter to conclusion.”
-IOL
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