With jail time waiting for the sole director of a close corporation, claimed to be part of a syndicate which was allegedly involved in multi-million fraud committed at the Chief Albert Luthuli Hospital in Durban regarding the supply of medical equipment, she turned to court to have her sentencing procedures placed on hold, reports IoL.

Oleena Dauchand, the only member of Trestine Trading CC, asked the KZN High Court (Durban) to interdict the prosecuting authority from going ahead with its sentencing next month after she and the close corporation were found guilty on numerous counts of fraud and corruption.

Dauchand, hot on the heels of her conviction and a recommendation in a pre-sentencing report that she should face jail time, claimed that she had actually meant to plead not guilty to the charges.

She blamed her erstwhile legal team for making her enter a guilty plea to the charges.

The magistrate dealing with her case, however, did not accept her change of plea after her conviction.

Dauchand has instituted proceedings to overturn this refusal by the magistrate, but she argued that it would be too late to prevent harm if the sentencing overtakes the review proceedings, as she may well then already be in jail.

Various members of the alleged syndicate negotiated a plea bargain agreement with the prosecution, but Dauchand's efforts to negotiate a similar agreement were unsuccessful.

While the others have meanwhile been sentenced in terms of that agreement, she and her company’s trial was separated from the others.

They faced 59 counts of fraud, 59 counts of corruption and one count of money laundering, according to IoL.

It was explained that Consulens Medical Healthcare Solutions was subcontracted within the Department of Health in KZN, as a supplier of equipment to, among others, the Inkosi Albert Luthuli Hospital.

It was claimed that Consulens’ employees would manipulate the company’s systems to create a fictional need for the supply of items in order to replenish stock.

Trestine Trading would then issue invoices for such items to Consulens. The state’s case is that not only was there no actual need for these items, but nothing was delivered.

Through collusion with representatives of Consulens, Trestine’s invoices were nevertheless paid by Consulens. The unlawful proceeds were then allegedly shared between the applicants and Rakesh Maharaj, the now former logistics manager at Consulens.

He earlier pleaded guilty to money laundering and fraud valued at more than R5.7m and he was sentenced to eight years imprisonment. 

The prosecution argued that the only reason for the applicants’ about-turn was that a prison sentence was recommended.

The High Court, however, suspended the sentencing procedures pending the outcome of her review application.

Full IoL report