The decision by the former Gauteng Department of Health Chief Financial Officer (CFO) Lerato Madyo to secretly took an allege settlement has come back to haunt her.
Madyo is fingered to be the person who could have saved the life of Babita Deokaran who was a corruption whistle-blower.
Deokaran was assassinated in a hit-style killing outside her south Johannesburg home in August 2021 after she flagged the Tembisa Hospital corruption scandal which cost it an estimated R800 million.
In her role as Chief Director in Financial Accounting, Deokaran had been a bulwark against irregular and dubious payments.
Owing to her position, she was also in control of the evidentiary paper trail left by those who preyed on public funds.
Madyo, who was warned by Deokaran about irregular contracts at Tembisa Hospital shortly before the whistleblower’s murder, did not resign as previously claimed.
New information in the Gauteng Legislature reveals Madyo actually left the department in July 2024 through a confidential settlement while facing disciplinary charges over procurement irregularities. At the time, the department told the public she had resigned.
Madyo had also been suspended on full pay for nearly two years, reportedly earning around R3 million, before the case was quietly settled.
On Thursday Gauteng Premier Panyaza Lesufi noted the statements and allegations made by the Democratic Alliance (DA) regarding the monetary settlement reached between the GDH and Madyo.
Lesufi dismissed any insinuation that he was part of the arrangements to release the pension payout of the department’s former CFO and would like to point out that Madyo’s disciplinary hearing commenced prior to his tenure.
“The DA knows that in terms of the Public Service Act and applicable regulations, the Premier does not possess the authority to appoint or dismiss chief financial officers employed at the deputy director’s general level. Legally, that responsibility belongs exclusively to the Executive Authority overseeing the specific department that employs the individual.
“Regarding this case and in line with the legal prescripts, the Office of the Premier did not form part of the negotiations and decision-making that led to the monetary settlement. The Department of Health did engage the Office of the Premier after the agreement had been finalised, notifying the Premier of the outcome and requesting retrospective concurrence,” the statement reads.
Lesufi declined to grant this retrospective approval, citing the lack of consultation or prior involvement of his office.
“An independent legal firm has since been appointed to investigate the matter and determine whether the agreement was handled correctly and to advise on any further action required. The Premier shares the public’s concern regarding any expenditure of public funds and remains fully committed to rooting out corruption and ensuring accountability.We will not hide any form of wrongdoing, especially on matters related to the unfortunate loss of life of the late Babita Deokaran,” the statement reads.