Former KwaZulu-Natal Health MEC Peggy Yoliswa Nkonyeni appeared in the Pietermaritzburg High Court on summons on Thursday facing charges of fraud and corruption linked to controversial hospital procurement contracts allegedly worth more than R100 million.
Nkonyeni, 64, is accused of being involved in the procurement of water purification units, known as Watakas, and self-generating oxygen units, referred to as Oxyntakas, for hospitals in KwaZulu-Natal during her tenure as MEC for Health.
The contracts were awarded to Intaka Holdings, a company owned by Uruguayan businessman Dr. Gaston Savoi.
According to the National Prosecuting Authority regional spokesperson Natasha Ramkisson-Kara, the state alleges that procurement processes were manipulated and misrepresented, allowing Intaka Holdings to improperly benefit by more than R100 million.
Nkonyeni and co-accused Lindelihle Mkhwanazi were formally added to the list of accused in the matter on Thursday. The other accused are Busisiwe Nyembezi, Victor Ntshangase, Alson Sipho Buthelezi, Sandile Kuboni, Kuboni Shezi Incorporated, and Rowmoor Investments 738 (Pty) Ltd.
The state further alleges that between August 2006 and November 2007, Nkonyeni, Mkhwanazi and Rowmoor Investments acted with a common purpose and agreed to accept two payments of R500 000 from Intaka Holdings.
Ramkisson-Kara added that prosecutors claim the payments were intended to improperly influence the promotion, execution or procurement of contracts relating to the supply of two water purification units to KwaZulu-Natal hospitals.
The matter was postponed to June 11, 2026, in the Durban High Court to allow Mkhwanazi to confirm legal representation and for both him and Nkonyeni to receive statements from the state.
All accused in the matter, including Nkonyeni and Mkhwanazi, are expected to return to the Durban High Court on 23 July 2026 for a pre-trial conference.
The case follows the conviction of Savoi in September 2024.
He pleaded guilty in the Pietermaritzburg High Court to four counts of fraud and six counts of corruption committed in KwaZulu-Natal and the Northern Cape between 2004 and 2007.
Savoi’s matter was finalised through a plea and sentence agreement in terms of Section 105A of the Criminal Procedure Act. He was sentenced to pay a R5 million fine or face 10 years’ imprisonment, in addition to a further 10-year prison sentence suspended for five years.
Ramkisson-Kara said the court also granted a confiscation order of R60 million in favour of the state and ordered Savoi to contribute R15 million towards costs arising from curatorship proceedings linked to the Asset Forfeiture Unit restraint application.
sinenhlanhla.masilela@iol.co.za
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