R2.1bn hospital no longer a ‘high-profile’ case

WHILE the investigation into the R2.1 billion Kimberley mental hospital is said to be “ongoing”, the Directorate of Public Prosecutions has indicated that it is no longer a “high-profile” case following the death of an alleged benefactor.

The cost of the hospital, which has been labelled a “monument to corruption”, ballooned from R290 million to R2.1 billion and it took 14 years to complete.

In 2021, the Hawks’ investigation was said to be at an “advanced stage”, where it was reported that the arrest of private entities, high-profile personalities and government officials was “imminent”. However, to date, no arrests have been made.

The owner of Vista Park Developers, Andrew Scholtz, was the first of three contractors on site.

Advocate Brian Mdlalose from the Directorate of Public Prosecutions (DPP) Specialised Commercial Crimes unit indicated that while the investigation into the hospital was continuing, it was no longer a “high-profile case”.

“This is one of our oldest cases, which dates back to 2006. It has had many challenges due to the extent of the investigation. There were three legs of investigation where Scholtz was the main benefactor in the project,” said Mdlalose.

He added that while the DPP had not abandoned the case, the magnitude of the investigation had been reduced following Scholtz’s death in 2021.

Vista Park Developers/Joh Arch Investments (Pty) Ltd, which was placed under liquidation in 2010, instituted legal action against the Department of Roads and Public Works in 2012 after its contract was terminated due to non-performance.

The workmanship was found to be “unacceptable and incomplete”.

Scholtz became embroiled in a legal wrangle where he sought damages of R57 million and claimed that payment was outstanding.

The Northern Cape High Court ordered the liquidators to pay back a settlement agreement of R10 million in 2017.

The Department of Roads and Public Works claimed that Scholtz owed them R437,000 in legal costs in a lawsuit that they won in 2011, which was supposed to be deducted from a R36-million settlement.