Johnson Similo Found Guilty of R8.7 Million Health Department Fraud

by Hope Mafu

Johnson Gerald Similo, the 47-year-old director of Siphilile Investments (Pty) Ltd, has been found guilty of fraud in connection with a scheme that defrauded the Free State Department of Health out of R8.7 million. The conviction, handed down by the Free State High Court on Friday, comes after an extensive investigation that uncovered fraudulent payments made between 2011 and 2015.

Similo, along with his company, was one of over 20 suspects implicated in the scam, which also involved several government officials and directors of other companies. The fraud was uncovered after the Office of the Auditor-General identified irregularities, prompting the Hawks Serious Commercial Investigation to launch an inquiry in 2015. Similo and his co-accused were arrested in 2021.

According to Lieutenant Colonel Zweli Mohobeleli, spokesperson for the Hawks, the accused made fraudulent payments to service providers under the pretext of providing training services. However, no actual training took place, and the payments were made to benefit the perpetrators. As a result, the Department of Health was defrauded of R8.7 million.

Similo was sentenced to a five-year suspended prison term, conditional on not being convicted of fraud or money laundering during the suspension period. Additionally, his company, Siphilile Investments, was fined R200,000 and also received a five-year suspended sentence under the same conditions.

The remaining suspects, including current and former heads of the Health Department, are scheduled to appear before the Free State High Court later this week.

The case highlights the ongoing issue of fraud and corruption in South Africa’s public sector, with the Hawks continuing to pursue those involved in the complex scam.