By Thapelo Molefe
An R800 million healthcare tender intended to save lives has sparked allegations of corruption and governance failures within the Independent Development Trust (IDT), leading to Public Works and Infrastructure Minister Dean Macpherson launching an independent investigation.
The tender, which involved installing Pressure Swing Adsorption (PSA) Oxygen Plants in hospitals, has been marred by revelations that two awarded companies lacked critical South African Health Products Regulatory Authority registration, while another allegedly used fraudulent documentation.
He described the controversy as emblematic of the systemic challenges plaguing the IDT, an organisation already under scrutiny for its inability to meet basic governance standards.
“We simply cannot allow close to a billion rand in public funds to be potentially lost through alleged corrupt activities, particularly when it involves essential healthcare equipment,” Macpherson said in a statement on Wednesday.
The IDT, currently without a quorum on its board, faces criticism for its handling of the tender and failure to provide adequate documentation to the minister, despite multiple requests.
Highlighting the gravity of the issue, the Department of Health has announced its intention to withdraw the contract entirely.
Rejecting the IDT’s ability to self-investigate, the minister will appoint an independent firm to scrutinise the organisation’s governance failures.
“My interactions with the IDT over the past two months have raised serious concerns about governance within the organisation,” he said.
“An organisation cannot and should not be allowed to investigate itself.”
The investigation stems from weeks of revelations and growing concerns regarding the PSA Oxygen Plant tender.
On 28 October, media reports alleged that R836 million had been awarded to companies under questionable circumstances. In response, Macpherson requested a full account of the tender process from the IDT board on 29 October.
Despite repeated follow-ups, the IDT provided incomplete documentation between 1 and 8 November, failing to meet the Minister’s demands for transparency.
By 11 November, further reports emerged, claiming that a “ghost company” had secured a R428 million contract using potentially fraudulent documentation.
From 15 to 19 November, the Minister briefed President Cyril Ramaphosa and called for the immediate suspension of the tender. Finally, on 5 December, the Department of Health confirmed its intention to cancel the tender, removing the IDT as the implementing agent.
Macpherson expressed gratitude to Health Minister Aaron Motsoaledi for their joint efforts to safeguard public funds and ensure accountability.
“The collaboration between our departments demonstrates our shared commitment to upholding integrity and delivering critical healthcare services,” he said.
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