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Jacobus says that she was told by Manamela to call someone to arrange for linen for the NGOs.
Some NGOs ended up paying for the linen themselves, with one NGO owner losing their home after financing themselves.
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She says she did not report that licenses were being issued in conflict of the law to the MEC or HOD.
Moseneke asks what steps she took to protect mental healthcare users. She says she met with hospital CEOs and moved some users to clinics.
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Moseneke says Manamela came to the hearings and told the panel that Jacobus signed off the licenses and knew about audits, something Jacobus denies.
Moseneke questions why Jacobus comes here and says Manamela signed off on the licenses.
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She says it wasn't clear to her what was going on, as it was chaotic.
She said she informed Manamela at a meeting in the provincial office that she was not comfortable with the issuing of the licenses.
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Suspended Gauteng director of mental health resigns
Suspended Gauteng director of mental health Dr Makgabo Manamela has resigned.
Deputy Director General for provincial communication services Thabo Masebe confirmed that Manamela’s resignation was received on Wednesday afternoon.
She resigned with immediate effect.
"The resignation simply means she is no longer an employee of [the] provincial government, therefore we will not proceed with a disciplinary hearing against her," he said.
18 Jan 2018
Call to criminally charge Selebano, despite his resignation
The DA has said the resignation of Dr Barney Selebano, the suspended head of the Gauteng health department, following the Life Esidimeni tragedy was not sufficient.
The party has called for Selebano to be criminally charged as well.
Selebano was one of a number of health officials identified as being responsible for the transfer of mentally ill patients from Life Esidimeni facilities to a number of unlicensed NGOs.
The move resulted in at least 143 deaths.
Selebano, who testified at the Life Esidimeni arbitration hearings in December last year and said he took "accountability", first launched an unsuccessful court bid to challenge a subpoena issued for him to appear before the hearings.