NEWS
19/03/2018 07:16 SAST | Updated 19/03/2018 07:16 SAST

Guptas Planned To Use Mobile Clinic Scheme To Fund Billion-Dollar Dubai Hospital For The Rich

The Guptas reportedly hatched a plan to fund their hospital with funds siphoned off from provincial health department contracts.

MUJAHID SAFODIEN via Getty Images
Tens of thousands of South Africans from various political and civil society groups march to the Union Buildings to protest against South African president and demand his resignation on April 7, 2017 in Pretoria.

The Guptas were planning to use funds siphoned off from their healthcare screening programme in South Africa to build a billion-dollar hospital for the rich in Dubai, City Press reported on Sunday.

The family reportedly wanted to use R650 from the R954 charged per patient as part of their Mediosa healthcare screening programme to pay for the Dubai hospital.

The funds would be funnelled through Mediosa's UAE bank accounts. A former Mediosa employee reportedly told City Press that the company was a Gupta front company which the family planned to expand across the country.

The company already had lucrative contracts in the North West and the Free State.

A service-level agreement between Mediosa and two Dubai companies reportedly explains that the Free State and the North West will "increase their spend on this project within the next six months, based on the successful roll-out and positive impact of the project on targeted communities".

Other provinces would soon roll-out the same project, with the total national contract value expected to be R950-billion per year, the Guptas reportedly said. The company also wanted to expand its services to Eskom.

Mediosa's contract with the North West is reportedly under investigation by the Hawks, and a Mediosa director left as soon as the Hawks raided the Gupta's Saxonwold home. Another director left the country in January.

City Press also reported that North West provincial health department head, his deputy and their wives were put up in a luxury hotel in India by Mediosa's sister company.

News24 reported that early in March, employees at Mediosa had not been paid and management had abandoned them.

The #GuptaLeaks reportedly shows a clear relationship between the Guptas and the Mediosa directors.

The controversy sparked a war of words between health minister Aaron Motsoaledi and North West Premier Supra Mahumapelo. According to IOL, Mostoaledi said the Guptas had treated the provincial health department "like an ATM card". He said the Mediosa contract would be terminated as it served no purpose but to "siphon money from the health department to the Guptas".

Mahumapelo said he would appoint forensic investigators to look into the contract. It was alleged that Mediosa was paid R30-million upfront and a further R180-million for the provision of a single mobile clinic, IOL reported.

Mahumapelo reportedly said he would rather discuss the issue with the ANC's leadership than Motsoaledi, who he called a "populist".

The Times and Business Day reported late last year that cost calculations for the Mediosa project were sent to Tony Gupta months before the tender to supply the mobile clinics was awarded.