News | Medico-legal Affairs

Former NHLS CEO Joyce Mogale Ordered to Pay R22 Million for Procurement Irregularities

Time to read: 00: 22 mins 
 

17 September 2024, 22:00
 

Five years after Joyce Mogale, former CEO of the National Health Laboratory Service (NHLS), was dismissed for breaching the Public Finance Management Act, the Labour Court has ordered her to pay the NHLS over R22 million in damages.

Mogale, alongside former CFO Sikhumbuzo Zulu, was dismissed from the NHLS in 2019 for irregularities in procurements worth approximately R200 million.

In the judgement, handed down on September 13, 2024, the Labour Court ruled Mogale and Zulu’s estate liable for R342,545 in relation to a tender awarded to DV8 Consulting CC in 2016, for provision of Multiprotocol Label Switching wide area network services. 

Mogale was further ordered to pay R22.1 million for a motor vehicle leasing tender awarded to Afrirent without proper board approval. A third claim involving a computer hardware contract with Blue Future Internet and Surveillance was found to be 'seriously irregular', but no damages were awarded in this case.

The court criticized Mogale and Zulu for gross negligence, noting their failures in governance. 

For her part, Mogale has disputed the judgment, calling it unfair. In a somewhat tangential shift in logic, she has cited the significant reduction in the amount she has now been ordered to pay—from the original R236 million to R22 million— as evidence to support her claim.

She was quoted in the Daily Maverick, as saying, “I am categorically against the judgment.I am still going to consult my legal representatives on the way forward. The difference between the initial R236-million litigation and the now R22-million should tell you something about this case,” she said.

The criminal case against Mogale continues.

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