THE Special Investigating Unit says Dr Anban Pillay, former acting director-general of the national Department of Health during the COVID-19 media campaign, should be criminally charged for financial misconduct, gross negligence and gross dereliction of duty.
According to the SIU report, released on Wednesday, Pillay committed fraud during the awarding of the R150 million contract to Digital Vibes.
This comes after President Cyril Ramaphosa authorised the release of the Special Investigating Unit’s (SIU) final report into the health department’s contract with Digital Vibes.
The department initially contracted Digital Vibes for the National Health Insurance (NHI) campaign in 2019, which was when former Health Minister Dr Zweli Mkhize reportedly pressured officials to appoint the company for the contract.
The report says Dr Pillay, in a letter to the National Treasury dated 11 May 2020 where he requested approval to deviate from normal procurement procedures, made numerous material intentional misrepresentations to the National Treasury in an attempt to obtain belated approval to deviate from normal procurement procedures.
The SIU has pointed out that Tahera Mather and Naadhira Mitha committed fraud in that they held out to the department that Digital Vibes was tendering for the NHI media campaign contract, whereas in fact, Mather and Mitha used Digital Vibes as a front in order to hide the fact that they were tendering for the contract and “disguised” this fact due to the fact that they were close associates of the Minister, who was the Executive Authority of the NDOH, which was awarding the NHI media campaign contract.
The report also adds that taking into account an analysis of the bank account(s) of Digital Vibes, it appears that Digital Vibes failed to declare and pay company tax and failed to pay the required VAT to the South African Revenue Service.
Another key find of the SIU investigation is that former minister Mkhize lied about not having benefited from the Digital Vibes contract.
In fact, both he and his son benefited, according to the SIU.
“Obtained evidence indicates that on 2 May 2020, Digital Vibes transferred R 300 000 (via a company belonging to Ms Mather) to a company belonging to the Minister’s son,” according to the report.
“The Minister indicated that his son had (only once this information had become known in the media) informed him that this money was a gift from Ms Mather, who had a close relationship with him (his son).”
“Obtained evidence also indicates that on 4 May 2020 Digital Vibes paid an amount of R 160 000 to a Pietermaritzburg car dealership in respect of the purchase of a second-hand motor vehicle (i.e. a 2003 Toyota Land Cruiser) for the Minister’s son. This motor vehicle was registered in the name of the Minister’s son.”
“The Minister also indicated that his son had (once this information had become known in the media) informed him that this second-hand motor vehicle was a gift from Ms Mather, who had a close relationship with him (his son).”
According to media reports, which referred to photographs posted on social media, the vehicle was put to use at a farm near Pietermaritzburg owned by the Minister’s son.
The report further states that obtained evidence indicates that, at some stage, Mather contacted a witness and inquired if he knew of anyone that could give her cash in return for an EFT transfer that she would do for the said cash value.
This person made inquiries from a Cash & Carry Wholesaler and was informed that this Cash & Carry Wholesaler would be in a position to assist Mather in this regard.
He obtained bank account details for purposes of the EFT transfers.
According to this witness, transfers amounting to R 3 400 000 were made into the account of the Cash & Carry Wholesaler.
Ramaphosa received the report and referral on the Digital Vibes matter from the SIU in early July 2021.
Mkhize resigned after Ramaphosa placed him on special leave to answer allegations that he influenced the hiring of his close associates in the communication tender.
The DA’s shadow minister of health, Siviwe Gwarube, has called on the National Prosecuting Authority to pursue criminal investigations and prosecutions against the “Digital Vibes 4” which includes Mkhize, Director-General, Dr Sandile Buthelezi as well as the Deputy-Director General, Dr Anban Pillay, and the Department’s CFO, Ian Van Der Merwe.
“We call on the police to give us feedback on our criminal charges and to supplement their investigation to include Pillay and Van Der Merwe who have been identified by this report,” said Gwarube.
“The DA also calls on the Minister of Health, Dr Joe Phaahla, to clean up the rot in the Department of Health with the immediate removal of all those implicated in the Digital Vibes corruption scandal pending a criminal investigation.”
“Instead of taking action against Mkhize and Health Department officials when the irregularities were first flagged, the President chose to conceal this report from the public in order to hide away this abhorrent and brazen display of ANC corruption.”
- Inside Politics
