R28m paid for failed North West hospital project
A North West company, MIB Infrastructure, is under scrutiny after receiving R28 million for a hospital project that remains unbuilt. Allegations of fraud and overpayment have surfaced, with the company claiming the funds were for professional design services rather than construction.
Why it matters
The case illustrates significant governance and accountability issues in public infrastructure procurement, directly affecting the delivery of essential healthcare services.
Four years after a North West company was awarded a R28m health department contract to build a new 120-bed facility at General De La Rey Hospital in Lichtenburg, the deteriorating hospital remains untouched.
According to a source within the department who spoke to the Sunday Times, MIB Infrastructure received an overpayment of R21m and now faces allegations it secured the tender with allegedly fraudulent documents.
The payment covered fees for design development, documentation, procurement, construction supervision and project close-out — but the firm only delivered initial concept designs and inception services valued at R6.9m.
“Nobody knows why the department paid the R21m, which included supervision of construction despite no construction having taken place. MIB is favoured by certain officials, and payments are channelled to this company,” said the insider.
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