Latest news with #R800m
TimesLIVE
4 hours ago
- Business
- TimesLIVE
Forensic report urges action against IDT execs over R800m oxygen tender
An investigation ordered by public works and infrastructure minister Dean Macpherson has recommended disciplinary action against top officials at the Independent Development Trust (IDT) over procurement irregularities in the R800m PSA oxygen plant tender. Macpherson released the findings of the independent forensic investigation on Tuesday. The report recommended disciplinary action against IDT CEO Tebogo Malaka, general manager for supply chain management Dr Molebedi Sisi, and other officials. The IDT is a public entity established to deliver social infrastructure such as schools, police stations and clinics and falls under the department. In October last year, the Daily Maverick published a series of articles 'surrounding the R836m oxygen plant tender', describing the IDT as the implementing agent in a multimillion-rand contract with the department of health for the rollout of pressure swing adsorption (PSA) oxygen plants. Macpherson said the tender was intended to deliver life-saving PSA oxygen plants to 60 hospitals across the country. He said it was a project worth R836m, of which R528m had been allocated directly to the IDT for implementation. Investigations by Daily Maverick and amaBhungane revealed that two of the companies awarded tenders lacked the necessary SA Health Products Regulatory Authority (SAHPRA) registration, raising red flags over basic compliance. The Sunday Times reported that later in November, a ghost company with fraudulent documentation had been awarded a R428m share of the PSA oxygen plant tender. Macpherson took his concerns to President Cyril Ramaphosa and called for the immediate suspension of the tender. This led to the department of health withdrawing the contract from the IDT, and announcing its intention to investigate how the tenders were awarded. In January, Macpherson appointed an independent advisory firm to conduct a full, independent forensic investigation into the tender. Reporting back on Tuesday, Macpherson said the report by investigators confirmed that multiple companies awarded work under the PSA project did not have valid SAHPRA licences. 'One company, Bulkeng (Pty) Ltd, submitted a SAHPRA licence belonging to Atlas Copco Industrial SA — without the knowledge or consent of Atlas Copco. This was a clear misrepresentation. It was fraud. Moreover, Bulkeng intended to subcontract more than 25% of its responsibilities to Brutes Air Solutions, but failed to disclose this, in violation of the preferential procurement regulations,' Macpherson said. The investigators also found that the bid evaluation process was deeply flawed. 'The SAHPRA compliance requirement — originally stipulated in the project execution plan and the department of health's memorandum of agreement — was deliberately removed from the final request for proposals. This opened the door for ineligible bidders to participate and win huge contracts. 'Meeting minutes were missing or incomplete, which is shocking but not surprising. Committee appointments were not properly constituted. Bid scores were not properly documented. Price negotiations were not transparent,' he said. Giving an example, Macpherson said the original department of health budget was R216m — but when the IDT issued the request for quotation, prices had ballooned to more than R590m without a single documented approval or value-for-money assessment. Macpherson said Bulkeng's CIDB grading limited it to contracts of no more than R200m yet the IDT awarded it contracts worth R428m, more than double its allowable threshold. He said Malaka, as the CEO of the IDT, failed to exercise oversight as the report confirmed she relied entirely on internal supply chain management staff to assure her that the process had followed proper procurement protocol. She failed to verify any of the documentation. 'She did not act on the red flags raised by the department of health. She did not convene the necessary risk committees to assess the matter. In this, she was not alone,' Macpherson said. The report also singled out Sisi for his role in misleading internal stakeholders and failing to act per his responsibilities. The forensic report recommended that disciplinary action should be taken against Malaka and Sisi. The investigation also recommends disciplinary referrals against several other IDT executives and supply chain management officials. Macpherson said he has written to the Hawks, briefed the minister of health and met the newly appointed IDT board to initiate consequence management.
News24
5 hours ago
- Business
- News24
IDT execs face action; Mashatile declares luxury pad: Today's top 7 stories in 7 minutes
News24 brings you the top 7 stories of the day. Graphic: Sharlene Rood/News24 News24 brings you the top stories of the day, summarised into neat little packages. Read through quickly or listen to the articles via our customised text-to-speech feature. Forensic report recommends disciplinary action against IDT CEO over R800m oxygen plant tender - A forensic investigation recommends disciplinary action against IDT CEO Tebogo Malaka and other officials. - The investigation was into an R800 million oxygen plant tender awarded by the Independent Development Trust (IDT). - Minister Dean Macpherson launched the investigation due to corruption allegations and has since stabilised the IDT board. Photo by Gallo Images/Die Burger/Jaco Marais 'It's a f*** up': Secret police recording reflects Cape Town's security contract rivalry - A 2016 nightclub incident, captured in intercepted calls, revealed a violent escalation in Cape Town's nightclub security contract disputes. - The intercepted calls are central to the State's case against alleged members of a criminal enterprise, including the late Mark Lifman and Andre Naudé, and Jerome Booysen, accused of involvement in Brian Wainstein's murder. - The defence is challenging the admissibility of the intercepted calls, citing potential errors and violations of privacy, in a trial within a trial. Screenshot - Hardie Property/YouTube The good life: Mashatile suddenly declares ownership of R28.9m Constantia palace - Deputy President Paul Mashatile has declared ownership of a R28.9 million Constantia mansion, despite it being owned by a company belonging to his son-in-law, Nceba Nonkwelo. - The Hawks are investigating the origin of the funds used to purchase the house, which boasts luxury amenities and was purchased in May 2023. - Mashatile also declared a R37 million house in Waterfall, Midrand, and has previously declared gifts, including items from China and Russia. Liam Jacobs to step in as Joburg councillor after embattled Kunene's resignation - Liam Jacobs, former DA MP, will replace Kenny Kunene as a City of Johannesburg councillor after Kunene's resignation. - Gayton McKenzie sees this deployment as valuable local government experience for Jacobs, who is the PA's mayoral candidate for Tshwane. - McKenzie maintains Kunene's innocence amid the controversy and will appoint a firm to investigate the matter. Alet Pretorius/Gallo Images US pushback on BEE clouds SA trade deal, says DG - Zane Dangor warned there's no guarantee of an advantageous trade deal with the US by 1 August due to demands around domestic policies like BEE. - The US rejected SA's initial 'signed deal' as 'not ambitious enough', and talks are ongoing under a nondisclosure agreement. - Dangor expressed concern that the US is 'demanding curtailment of sovereignty' regarding domestic policy to secure the trade deal. Australia v Lions controversy: Rassie weighs in on 'touch-and-go' clean-out - Rassie Erasmus acknowledges the high emotions surrounding the controversial referee decision in the Australia vs British & Irish Lions Test, which led to the Lions' series-clinching try. - Erasmus states that World Rugby has ruled on the decision, and it must be accepted, despite understanding the disappointment from the Australian side. - The Springboks have minor injury concerns with Cheslin Kolbe and Canan Moodie, but Erasmus expects them to be fit for the upcoming Tests against Australia in mid-August. Show Comments ()
The Citizen
2 days ago
- Politics
- The Citizen
Macpherson suspends EPWP funds to Matjhabeng Municipality
This follows reports that the municipality's EPWP payroll is allegedly being used to pay inflated salaries. Public Works Minister Dean Macpherson has suspended all Expanded Public Works Programme (EPWP) fund transfers to the Matjhabeng Local Municipality. This follows reports that the municipality's EPWP payroll is allegedly being used to pay inflated salaries, over R31,000 per month , to former councillors and current political office bearers while others are paid as little R1,500. This is more than ten times the average EPWP stipend. Jobs According to reports, municipal insiders said this practice continues to undermine the EPWP's purpose and prevents thousands of local young people from accessing jobs. Under EPWP rules, jobs must be short-term and skills-based, prioritising vulnerable and unemployed groups, particularly young people, women and people with disabilities. Employment is limited to 24 months within a five-year cycle. ALSO READ: WATCH: Macpherson not deterred by 'political pressure or death threats' over R800m oxygen tender 'Lifeline' Macpherson said the EPWP was established to provide short-term, skills-based work opportunities, not to serve as a vehicle for political patronage. 'The EPWP is an essential lifeline for many in communities across the country, including in Matjhabeng, and it would therefore be wholly unacceptable if any politician or official is found to have used the programme for personal benefit. 'We simply cannot turn a blind eye when serious allegations of abuse are raised, which is why I have instructed the department to suspend EPWP fund transfers until a formal investigation can be completed,' Macpherson said. Reformation Macpherson added that the allegations further reinforce his view that the EPWP must be reformed to eliminate any possibility of abuse and ensure that intended beneficiaries fully benefit from the programme, free from political interference. 'Through the EPWP Listening Tour conducted nationwide, we have heard several serious allegations of abuse — such as those in Matjhabeng — and it is therefore critical that the programme be strengthened to eliminate any possibility of corruption and political patronage. 'After 20 years, we are committed to reforming the EPWP to ensure it remains a viable platform for empowerment well into the future, as we work to build a better South Africa,' Macpherson said. EPWP The EPWP, which was launched in 2004, was meant to tackle unemployment through labour-intensive projects like road maintenance, sanitation and community work. Earlier this month, Macpherson vowed to restore public trust in his department by taking decisive action against mismanagement, repurposing idle state assets, and reforming the EPWP. Macpherson confirmed that investigations into the Telkom Towers project and the PSA Oxygen Plant, managed by the Independent Development Trust (IDT), are expected to be completed by late July 2025. ALSO READ: Zikalala slams 'spurious' allegations about R45m IDT lease deal, heads to Public Protector
IOL News
12-07-2025
- Business
- IOL News
Accelerate continues with R100 million rights offer amid large related-party uncertainties
JSE-listed Accelerate Property Fund, which owns 50%of Fourways Mall, will undertake a R100 million rights issue on July 14, 2025, to further improve the mall and for the company's working capital requirements. Image: Fourways Mall/Facebook Accelerate Property Fund (APF), which has Fourways Mall Shopping Centre as its main asset, said Friday a R100 million rights offer that opens on July 14 will continue, in spite of uncertainty about the outcome of a R800m agreement with the developer of the mall. APF's share price fell 5.56% to 51 cents on Friday, much in line with the share price of 53 cents that it traded at a year earlier. 'APF remains committed to restructuring its operations with a focus on improving the Mall as APF's largest asset. The opening of the rights offer… is an important step towards the completion of these restructuring efforts, the proceeds of which will be utilised for improvements of the Mall and working capital needs of APF,' a notice said Friday. APF's directors said the rights issue would add to the R200m already raised by APF in a rights offer in June 2023. Meanwhile, a settlement agreement entered into in November last year, between APF and co-developer of the mall, Azrapart, had lapsed due to suspensive conditions not being fulfilled in the requisite timeframe. Last month, media reports showed Azrapart was placed into business rescue by the High Court in Bloemfontein, following an application by FirstRand's RMB and Investec, but Azrapart is appealing the ruling. 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 Other parties to the agreement with APF are Accelerate Property Management Company, the manager of the properties owned by APF other than the Mall; Fourways Mall Managing Agent and Fourways Precinct, the former manager of the Mall; the trustees of the Michael Family Trust; and APF's former CEO Michael Georgiou, who also controls Azrapart. Shareholders were previously told that APF would engage with the parties to conclude a new agreement, on the same or close to the same terms as the initial settlement agreement. 'Although both parties have indicated their willingness to sign the new agreement, the new agreement has not yet been concluded…and negotiations with the related parties are ongoing.' Should the new agreement be concluded, the balances due to and from the related parties would be offset to R0. Should the new agreement fail to be concluded, R800m, being the amounts receivable from the related parties, might be impaired by APF. APF said it would publish its results for the year to March 31, 2025, by July 31, 2025, whether or not the new agreement was concluded between APF and the related parties. If the new agreement was not concluded, legal advice would be sought about the validity and quantum of the claims. APF would also consider all available remedies to seek the recovery of the amounts due by the related parties to APF, it said in a statement. Visit:
The Citizen
09-07-2025
- Business
- The Citizen
Macpherson vows action on failed projects and EPWP reform
Minister to meet families of George collapse victims with final report in hand Public Works and Infrastructure Minister Dean Macpherson has vowed to restore public trust in his department by taking decisive action against mismanagement, repurposing idle state assets, and reforming the Expanded Public Works Programme (EPWP). Marking his first year in office at a media briefing ahead of his budget vote on Wednesday, Macpherson outlined major investigations into failed state projects. This included the R600 million Telkom Towers deal and a collapsed oxygen plant initiative for hospitals. 'We wanted to investigate some of the most glaring examples of waste, mismanagement, and dysfunction. 'The draft investigation reveals a significant loss in terms of the value of the property owing to a series of damages to its infrastructure, and whether the project is still viable,' said Macpherson. Telkom Towers under scrutiny He confirmed that investigations into the Telkom Towers project and the PSA Oxygen Plant, managed by the Independent Development Trust (IDT), are expected to be completed by late July 2025. 'This was meant to be a flagship health infrastructure initiative built with donor funds, providing 60 hospitals with on-site oxygen capacity. 'Instead, it became a cautionary tale, with the draft report confirming many of my suspicions,' said the minister. Lifestyle audits are also underway for 400 high-risk officials, alongside a physical audit of the department's payroll system to root out ghost employees. ALSO READ: WATCH: Macpherson not deterred by 'political pressure or death threats' over R800m oxygen tender EPWP overhaul Macpherson also announced major reforms to the EPWP. 'Our view is that EPWP must be refocused around transparency, training and opportunity,' he said. According to Macpherson, planned changes include: Longer project durations, allowing for real skill development; Fairer compensation; Enterprise development and support for EPWP graduates starting small businesses; Monitoring the impact of constructed assets and their value to communities; Pilot biometric attendance systems to improve accountability and recruitment. The department has halted transfers to municipalities that fail to meet audit and financial control standards. ALSO READ: Macpherson's IDT appointments face urgent court bid State assets to generate revenue Macpherson revealed that unused state-owned properties are being repurposed for public benefit. Since taking office, 17 properties have been handed over for use as shelters for victims of gender-based violence and substance abuse. 'In the previous five years, only one such transfer was made,' he said. Plans are also in place to restructure state property assets into an 'investable portfolio' to attract private sector investment. ALSO READ: Macpherson hands over 10 properties in Mpumalanga for GBV shelters George building collapse Macpherson confirmed he will meet with the families of the 34 workers who died in the George building collapse on 19 July, following the postponement due to former deputy president David Mabuza's funeral. 'The collapse was entirely preventable. Accountability cannot be optional when lives are lost due to human error,' he said. The Engineering Council of South Africa has finalised a report detailing regulatory and professional failings, which will be handed to law enforcement. 'I assure the public […] we will do what is right. People will be held accountable,' Macpherson said. NOW READ: Zikalala slams 'spurious' allegations about R45m IDT lease deal, heads to Public Protector
