Latest news with #R800
Eyewitness News
2 hours ago
- Health
- Eyewitness News
Motsoaledi pleased no donor funds were wasted in illicit procurement of oxygen plant
JOHANNESBURG - Health Minister Aaron Motsoaledi said he's pleased no donor funding was wasted in the illegal procurement of service providers to supply the infrastructure to provide oxygen to 55 hospitals. Motsoaledi said Tuesday's release of the findings of the forensic report ordered by Public Works Minister Dean Macpherson clears his department of any wrongdoing in the more than R800 million tender. The investigation found the CEO of the Independent Development Trust, Tebogo Malaka, failed to exercise the necessary oversight over ballooning costs. ALSO READ: Macpherson on irregular oxygen plant tender after R13m spend: 'We have effectively lost' Minister Aaron Motsoaledi says the finalisation of this investigation removes the dark cloud that's been hanging over the health department. Motsoaledi said those who've been implicated in wrongdoing - not only committed financial corruption - but deprived patients of urgent life-support in the form of oxygen. Motsoaledi's spokesperson Foster Mohale, said: 'Minister Motsoaledi is pleased that the Department of Health lost nothing and all the money that has been donated by the Global Fund is safe. It would have been a sad day if donor funds' money was to disappear under our watch.' The tender has since been removed from the IDT and is now under the management of the development bank. Motsoaledi said that with the finalisation of the forensic investigation, the remaining work will be expedited to conclude the project.
IOL News
2 hours ago
- Health
- IOL News
Motsoaledi welcomes forensic report clearing Health Department in R800m oxygen tender fraud
Minister of Health Dr Aaron Motsoaledi welcomes the release of the PSA Oxygen Plant tender report, reaffirming the Department's integrity and commitment to delivering oxygen infrastructure to 55 hospitals across South Africa. Image: GCIS A long-awaited forensic investigation into the R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender has uncovered shocking levels of fraud and governance failures within the Independent Development Trust (IDT), threatening one of South Africa's most critical public health infrastructure projects. Now, with the cloud of corruption beginning to lift, Health Minister Dr Aaron Motsoaledi says the path is finally clear to deliver life-saving oxygen infrastructure to 55 hospitals across the country. The forensic report, commissioned by Public Works and Infrastructure Minister Dean Macpherson, comes after months of public scrutiny over potential corruption linked to the project's original procurement process through the Independent Development Trust (IDT). Minister Motsoaledi lauded the transparency brought by the investigation, stating: 'I am pleased to note that a credible forensic investigation has gotten to the bottom of this matter to bring this matter to a close.' The report clears the Department of Health of any financial wrongdoing, a relief for a ministry that has relied on international partnerships, including donor funding from the Global Fund, to bolster the country's public health system. 'I am also satisfied that the report has not pointed any fingers at the Department of Health for any financial misdemeanour that may cast aspersions on the integrity of the department, because \[that] would have soured our relationship with the Global Fund,' Motsoaledi added. While the report does identify individuals who acted unlawfully, the Minister emphasised the serious consequences of their actions. 'They did not just commit financial corruption but deprived South Africans of urgent life support in the form of oxygen. As such, the Department of Health would like to see people being held to account and the law taking its course.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The PSA Oxygen Plant project was swiftly moved from the IDT to the Development Bank of Southern Africa (DBSA) in a bid to restore confidence and ensure uninterrupted delivery. That decision, taken jointly by Ministers Motsoaledi and Macpherson when corruption concerns first surfaced, appears to have paid off. Motsoaledi is pleased that the Department of Health lost nothing and all the money that has been donated by the Global Fund is safe. 'It would have been a sad day if donor fund money was to disappear under our watch.' With the report now public, attention turns to the DBSA to fast-track the completion of the vital infrastructure. 'The remaining work of the DBSA will surely be expedited to conclude the project as expeditiously as possible to the benefit of the people of South Africa,' said the Minister. The Health Ministry says it remains committed to transparency, accountability, and delivering critical healthcare infrastructure without delay. IOL News
IOL News
7 hours ago
- Business
- IOL News
IDT officials implicated in alleged tender fraud
Public Works and Infrastructure Minister Dean Macpherson briefs the media on the outcomes of the final forensic investigation conducted by PricewaterhouseCoopers (PwC) into the over R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender awarded by the Independent Development Trust (IDT). Image: Oupa Mokoena / Independent Newspapers A forensic investigation into the R836 million Pressure Swing Adsorption (PSA) Oxygen Plant project tender has exposed widespread procurement irregularities, fraud, and governance failures within the Independent Development Trust (IDT). The project aimed to install oxygen plants at 60 state hospitals nationwide. Minister of Public Works and Infrastructure Dean Macpherson on Tuesday released the findings and recommended disciplinary action against IDT chief executive officer Tebogo Malaka, general manager for supply chain management Dr Molebedi Sisi, and other officials. He has also taken steps to implement consequence management, including referring the matter to the Hawks and meeting with the newly appointed IDT board. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The minister reaffirmed his commitment to building a capable and ethical state, directing the department to implement all report recommendations to restore the IDT as a trusted partner in social infrastructure delivery. The investigation by PricewaterhouseCoopers (PwC) revealed that several companies, including Bulkeng (Pty) Ltd, were awarded contracts without valid South African Health Products Regulatory Authority (SAHPRA) licences. Macpherson stated that Bulkeng submitted a SAHPRA licence belonging to Atlas Copco Industrial SA without their knowledge or consent, constituting "clear misrepresentation" and "fraud". Furthermore, Bulkeng planned to subcontract over 25% of its responsibilities without disclosure, violating procurement regulations. The investigation also found significant flaws in the bid evaluation process, including the deliberate removal of SAHPRA compliance requirements, allowing ineligible bidders to participate and win contracts. Macpherson expressed shock at the missing or incomplete meeting minutes. The investigation report also revealed multiple irregularities in the tender process, including improperly constituted committees, undocumented bid scores, and non-transparent price negotiations. The report noted that the project's costs escalated significantly, from an initial estimate of R216.9m to R253.3m at the design stage, and eventually to R592.5m for implementation. Bulkeng was awarded contracts worth R428m, despite its CIDB grading limiting it to contracts up to R200m. The report found that Malaka failed to exercise adequate oversight, ignoring red flags raised by the Department of Health, and failing to convene necessary risk committees. Dr Sisi was also implicated for misleading stakeholders and failing to fulfill his responsibilities. The report stated that Dr Sisi advised against cancelling the RFQ process despite warnings from the Department of Health, assuring Malaka and the evaluation committees that the procurement process was compliant. However, key regulatory requirements, such as valid SAHPRA licences, were not enforced. Both Malaka and Sisi approved contracts based on flawed internal assurances, according to the report. The report recommended disciplinary action against officials involved in the tender, particularly Malaka, for endorsing the RFQ process despite irregularities and incorrectly appointing Health Department officials. Malaka also faces criticism for improperly establishing and managing the bid specification committee (BSC) and bid evaluation committee (BEC), appointing National Department of Health officials as members instead of observers, and violating procurement protocols. Dr Sisi is also implicated for failing to handle procurement issues in a fair, transparent, and equitable manner, as required by the IDT's supply chain management policy and the Constitution. Additionally, the report criticises the BEC secretariat for failing to maintain accurate records of meetings and proceedings. Cape Times
IOL News
7 hours ago
- Business
- IOL News
Disciplinary actions announced after R800 million PSA Oxygen Plant tender investigation
Forensic investigation into R800 million PSA oxygen plant tender to be disclosed by Minister Macpherson. Image: Picture: File Public Works Minister Dean Macpherson announced a series of disciplinary and criminal actions following the shocking findings of a forensic investigation into the controversial R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender. During a media briefing on Tuesday, Macpherson revealed the final results of a forensic investigation into the controversial R800 million Pressure Swing Adsorption tender awarded by the Independent Development Trust (IDT). The investigation was conducted by global consultancy firm PricewaterhouseCoopers (PwC), following months of scrutiny and allegations of procurement irregularities by the entity's officials. The report exposes systemic governance failures, procedural breaches, and outright fraud that have plagued the IST for years and threaten South Africa's public health infrastructure and integrity. "From the moment I stepped into this role, I was already aware of long-standing allegations of maladministration, financial misconduct, and corruption at the IDT," Macpherson declared during a briefing in Pretoria. The latest scandal, which came to light in October 2024, revealed alarming details about the procurement process for the PSA Oxygen Plant project. With a budget of R836 million, this crucial initiative was to supply oxygen systems to 60 hospitals nationwide. Of this, R528 million was allocated directly to the IDT. According to the report, one company, associated with a 'ghost' entity, submitted questionable documentation and appeared to have no physical presence or regulatory approval, raising clear suspicions of fraud. "This was a clear misrepresentation. It was fraud," Macpherson stated. 'This critical omission allowed ineligible bidders to participate and secure contracts worth over R428 million—more than double Bulkeng's CIDB grading limit of R200 million.' The report highlights a litany of procedural breaches, including missing meeting minutes or incomplete procurement committees that were improperly constituted; bid evaluation scores were inadequately documented; and price negotiations lacked transparency. 'For instance, the project's initial budget of R216 million ballooned to over R590 million—without documented approvals or value-for-money assessments.' Macpherson stated that the governance failure extended to the very top. Forensic report reveals fraud in R800 million oxygen plant procurement process. Image: Thabo Makwakwa 'The IDT's board lacked quota membership for months, internal audit functions were absent, and record-keeping was poor. 'Most critically, CEO Tebogo Malaka failed to exercise oversight, relying solely on internal SCM staff and ignoring red flags the Department of Health raised. Macpherson stated that despite urgent warnings from the Department of Health, he advised against canceling the RFQ, falsely asserting that procurement was compliant when key regulatory requirements, like valid SAHPRA licenses - had not been enforced. Macpherson announced that disciplinary proceedings are already underway against Malaka, Sisi, and other implicated officials, with referrals to the Hawks for criminal investigations, aimed at ensuring accountability and justice. 'Disciplinary measures against Ms Malaka for confirming the procurement process despite irregularities, and for appointing Department of Health officials as members rather than observers, as prescribed. Accountability for Sisi, who advised stakeholders to proceed despite warnings and regulatory breaches. Review of procurement processes, including proper documentation, committee composition, and adherence to regulations. He also reaffirmed the appointment of a new full-term IDT board, led by Chairwoman Zimbini Hill and Deputy Chair Professor Raymond Nkado, tasked with turning the agency around. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
10 hours ago
- Business
- IOL News
Minister initiates lifestyle audits to tackle corruption within Public Works
The Minister of Public Works and Infrastructure, Dean Macpherson briefs the media on the outcomes of the final forensic investigation conducted by PwC into the over R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender awarded by the Independent Development Trust (IDT). Image: Picture: Oupa Mokoena / Independent Newspapers Banele Ginidza Minister of Public Works and Infrastructure, Dean Macpherson, has announced a comprehensive lifestyle audit for 400 high-risk individuals—approximately 10% of the workforce within his department. This unprecedented initiative comes in the wake of a detailed forensic investigation by PwC into the award of a controversial tender, valued at over R800 million, for the Pressure Swing Adsorption (PSA) Oxygen Plant by the Independent Development Trust (IDT). Highlighting the anomalies within the department, Macpherson on Tuesday pointed out that many who engaged in multi-million-rand construction projects had been found driving luxury cars, including R3 million Porsche models, without clear financial justification. "That is a red flag. It's not targeting anyone, it's ensuring that we have people that put the country first as opposed to own bank accounts first. So we introduced two things: the first one is about ghost employee audits," Macpherson said. "We required every single employee of the department to arrive at work and identify themselves or do so through a virtual platform. They had to put camera on and have their ID next to their face. We then said who are the high risk individuals. "We have 400 high risk individuals, that's roughly 10% of our workforce [that] is classified as high risk and we do nothing about it. We had to act with speed, of course these things take time. The ghost audit will be released in the next three months." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Director-General Sifiso Mdakane shared that the first layer of high-risk individuals has been identified, which includes deputy director-generals and chief directors. "The next level of high risk are those people who work in Supply Chain Management (SCM ) which is quite the people that interact with suppliers, people in ICT and many other areas of SCM related governance as well as legal because they interact with contracts," Mdakane said. "These are part of our reforms that we are trying to implement around SCM particularly though this is about IDT, I have said in another platform that we are really pushing this e-programming system as Public Works to eliminate the issue of human contact so that the processes are seamless." Supporting the audit's implementation, Deputy Director General for Governance, Risk and Compliance, Lwazi Mahlangu, articulated the structured process of the investigation. He said it started with a lifestyle reviews, which looked at assets and lifestyle disclosures and was escalated to lifestyle investigations if there were issues raised and grew further into a full-blown lifestyle audits if the investigation also brought up issues. "Now that's different because the reviews and investigations are okay because there are processes that are built into our systems that can be done internally, but with an audit it becomes a different approach because now we have to look at external parties that can assist, in this case the SIU," Mahlangu said. He said the department had also assisted the IDT to start discussions with the SIU and had also helped to develop the terms of reference for that lifestyle audit. "Then you need an Ethics Officer, that's a discussion we are having with the IDT to deal with the issues of Ethics Officer in line with the Department of Public Service and Administration regulations." Meanwhile, Macpherson revealed that financial transfers for the Expanded Public Works Programme (EPWP) have been temporarily suspended pending an investigation into potential misappropriations. He said the investigation started from a tip-off that high-ranking officials pocketed funds from the EPWP programme under the pretext of paying workers. "We are conducting an investigation. It will not be long, a week or two maximum. And then once we have isolated the full suite of people that are involved, we will resume those transfers. I am not convinced its just those individuals identified. There may be more," he said. BUSINESS REPORT
