Latest news with #ThaboMakwakwa
IOL News
19 hours ago
- Business
- IOL News
Fraud revealed in R800 million oxygen plant tender, Macpherson announces disciplinary action against IDT CEO
Forensic report reveals fraud in R800 million oxygen plant procurement process. Image: Thabo Makwakwa 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 afternoon, 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. "These concerns have haunted the agency for years; unfinished projects, irregular tenders, and audit disclaimers have severely damaged its credibility." 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. The forensic report, which Macpherson presented publicly, indicates that multiple companies awarded contracts lacked proper certification, verifiable contact details, or legitimate operational capacity. Video Player is loading. 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Next Stay Close ✕ 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. 'The investigation further revealed that one company, Bulkeng (Pty) Ltd, submitted a SAHPRA license belonging to Atlas Copco Industrial SA without authorisation - a blatant act of fraud. Additionally, Bulkeng planned to subcontract over 25% of its responsibilities to Brutes Air Solutions but failed to disclose this, violating the Preferential Procurement Regulations.' The procurement process itself was severely flawed. The report confirmed that the SAHPRA compliance requirement - initially included in the Project Execution Plan and the Department of Health's Memorandum of Agreement, was deliberately removed from the final Request for Proposals (RFP). '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. '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. 'She did not verify documentation or convene necessary risk committees, instead endorsing flawed processes.' The report also criticises Dr Molebedi Sisi, the IDT's General Manager for Supply Chain Management, for misleading internal stakeholders. 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. 'It is important to note that no Global Fund resources were involved in this project. This justified swift government intervention to safeguard donor funds. 'The procurement has now been redirected through the Development Bank of Southern Africa (DBSA), ensuring the oxygen systems are acquired without further delay.' 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. Macpherson outlined specific areas for immediate action. '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 suggested Training and capacity building for SCM officials to prevent future irregularities and strengthen governance frameworks across the IDT and related entities. "This is not just about one tender," Macpherson asserted. "It's about the kind of state we are building - an ethical, capable, and developmental one." He said the government will leave no stone unturned in rooting out corruption and restoring public trust. 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. Macpherson praised Hill's resilience amid attacks rooted in sexism and racism, and expressed confidence in the board's ability to implement the report's recommendations. "This is about the kind of state we are building. Today's actions demonstrate our unwavering commitment to building an ethical, capable, and developmental state. Anyone who opposes transparency and accountability opposes the principles our democracy was built upon." He warned that tolerating corruption undermines the very fabric of South Africa's democracy, erodes public trust, and betrays the people who rely on these vital services. IOL Politics
The Star
3 days ago
- Business
- The Star
COSATU urges unity as racial rhetoric threatens South Africa's AGOA trade benefits
Thabo Makwakwa | Published 2 days ago The Congress of South African Trade Unions (COSATU) has issued a strong call for organisations across the country to tone down on divisive and destructive rhetoric that fuels racial tensions. The organisation stressed the importance of unity as South Africa seeks to renew the African Growth and Opportunities Act (AGOA) with the United States. In a statement released on Friday, COSATU's parliamentary coordinator, Mathews Parks, highlighted the potential consequences of inflammatory discourse, warning that "the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, particularly Afrikaans farmers and workers." COSATU's call comes amid the US' annual review of AGOA member eligibility, a critical process determining whether South Africa and other nations will retain preferential trade benefits. Parks expressed the federation's support for renewing AGOA before its expiry at the end of September, highlighting its significance for South Africa's economy. 'AGOA has been an important stimulant for key jobs and revenue-rich sectors such as mining, agriculture, motor manufacturing, and more,' Parks said. 'It has facilitated trade and investment between the US and South Africa, with over 600 American companies invested here and 500,000 South African jobs linked to US trade. It's a framework that benefits both nations and the continent.' He further noted that South African vehicle exports, including components like steering racks from Tunisia and rubber from Côte d'Ivoire, demonstrate the interconnectedness of regional trade, which AGOA has helped to facilitate. Parks stated the importance of a mutually beneficial trade agreement, highlighting opportunities for expanding product inclusion, supporting emerging sectors, and strengthening cooperation on the African Continental Free Trade Area (AfCFTA). COSATU expressed the positive reception of its proposals in Washington and lauded the solidarity shared with American labor movements, especially the AFL-CIO. The federation pledged to continue working closely with the South African government, business sectors, and US counterparts to deepen bilateral relations—while respecting sovereignty and promoting sustainable economic growth. 'Progress under President Cyril Ramaphosa's leadership to reset bilateral relations is encouraging,' Parks stated. 'However, it is vital that all parties support these efforts and refrain from inflammatory language that undermines social cohesion.' The federation strongly urged organisations such as AfriForum, NEASA, Sakeliga, and the Freedom Front Plus to prioritise national unity over partisan point-scoring. 'Whilst social media clicks may entertain friends over a braai, the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, in particular Afrikaans farmers and workers.' Parks stated that legitimate grievances should be addressed through constitutional and legal channels like Parliament, the judiciary, or law enforcement, rather than through rhetoric that incites racial divisions. 'Now is the time to shed narrow racial interests and place the nation's needs first,' he asserted. 'Partisanship has its place during elections, but the current climate demands maturity and responsibility from all stakeholders. Meanwhile, In a letter dated February 11, 2025 Republican congressmen Andrew Ogles, Tom Tiffany, Joe Wilson and Don Bacon asked President Donald Trump to revoke South Africa's access to the US market through AGOA and diplomatic relations alleging that South Africa had a vendetta against Israel, allegedly committing human rights violations and was friendly with China's Community Party. [email protected] IOL Politics
The Star
22-06-2025
- Business
- The Star
Black Economic Empowerment: Has BEE failed South Africa's poor
Thabo Makwakwa | Published 1 week ago The debate surrounding the effectiveness of Black Economic Empowerment (BEE) in South Africa has intensified in recent months, with critics pointing to its shortcomings in achieving its core objectives. BEE is a government policy enacted in 2003 to increase economic participation by black South Africans. It seeks to transform the economy by promoting black ownership of companies, increasing black representation in management and boardrooms, and fostering entrepreneurship among historically disadvantaged communities. Although its objectives are widely supported, the policy's success has been scrutinised. In a detailed analysis published in the St Andrews Law Review on May 24, 2023, James Vandrau argued that BEE has failed to reconcile social inequalities in South Africa. He pointed out that resistance from the white business community has hampered the policy's effectiveness. 'This demographic has largely opposed the changes instigated by BEE, leading to a considerable backlash against the program,' Vandrau noted. According to a 2006 survey, approximately one-fifth of South African companies had no plans to implement black empowerment initiatives. The slow pace of progress prompted the Presidential Black Business Working Group to call for more stringent measures, with the ANC acknowledging that more aggressive interventions were necessary to meet BEE targets. This frustration has led many black entrepreneurs to advocate for faster economic de-racialisation. One of the most persistent criticisms of BEE is that it has been undermined by corruption and nepotism. Critics argue that a privileged few have benefited disproportionately at the expense of the wider black community. Gelb & Black (2004) highlighted how unissued equity was transferred from white-owned companies to a select group of 'tenderpreneurs'—black businesspeople often with high political profiles but limited business experience—resulting in a form of enrichment rather than broad-based empowerment. Furthermore, the representation of black individuals in senior management and boardrooms remains disappointingly low. The Black Business Executive Circle report of October 2005 revealed that only five of the top 200 companies on the Johannesburg Securities Exchange (JSE) had black ownership exceeding 51%. Only 32 companies had black ownership above 25%, collectively accounting for less than 2% of the JSE's market capitalisation. In an opinion piece published in The Star three months ago, Professor Bheki Mngomezulu, Director of the Centre for the Advancement of Non-Racialism and Democracy at Nelson Mandela University, acknowledged that BEE was a noble idea but emphasised that corruption has derailed its progress. 'The process should start with politicians who have corrupted the system and then move to businesses that have exploited loopholes to serve self-interests,' Mngomezulu wrote. 'Unless these corrupt practices are addressed, BEE will hinder economic growth and exclude those it was meant to benefit.' Weighing in, Dr. Khwezi Mabasa, a sociology lecturer at the University of Pretoria and an economic policy analyst, emphasised the need for a broader approach. Speaking to IOL, Mabasa highlighted that current legislation and initiatives, such as the broad-based black economic empowerment codes (B-BBEE), must be complemented by efforts outside the stock exchange, including supporting small and medium enterprises, entrepreneurship, and local economic development. 'We need to look beyond listed companies,' Mabasa explained. 'Most businesses are unlisted, and we must focus on fostering local ventures, job skills development, and access to affordable financing for black entrepreneurs. 'Transformation should also prioritise building sustainable local economies, especially in townships, rather than relying solely on high-profile corporate ownership.' Without these reforms, Mabasa argued that South Africa risks perpetuating the inequalities that the BEE was designed to eradicate. [email protected] IOL Politics
The Star
19-06-2025
- Politics
- The Star
'Zuma is surrounded by political scoundrels': Floyd Shivambu alleges theft of R7 million a month from MK Party
Thabo Makwakwa | Published 4 hours ago In a startling revelation during a media briefing at Mhulu Hotel in Midrand, Floyd Shivambu, former MK Party secretary-general, accused senior leaders of orchestrating a campaign against him for preventing the squandering of the party's funds. Shivambu alleged that he was targeted for attempting to halt the monthly embezzlement of approximately R7 million from the party's funds. '(Zuma) is surrounded by political scoundrels who use his kindness, sometimes gullibility, that comes with age. To write down fake intelligence reports on me to influence him in the wrong direction. And the reason they do that is because they want to steal money from MKP this season. 'And they are doing so now -withdrawal of not less than 7 million rands monthly from organisational coffers. We are talking about this because we raised it internally,' he said. Shivambu said they asked them to stop doing that because they ran a risk of getting the party de-registered. Shivambu, a prominent figure in the MK party, revealed that his efforts to investigate and stop financial theft within the party had made him a target. He claimed that some senior leaders had access to the party's coffers and were siphoning off millions of rands each month. He said he was met with hostility when he intervened. 'The party has had seven secretariat generals since its establishment, and all of them are gone, because questioning the money makes you a target . They were stealing around R7 million per month,' Shivambu asserted. He further accused certain factional elements within the party of fabricating a false intelligence report, claiming he wanted to overthrow MKP leader Jacob Zuma. Shivambu suggested that this report served as a pretext for justifying his removal as secretary-general . Earlier this month, Shivambu was demoted from his role as secretary-general and was informed that he would be redeployed to Parliament. The party cited his recent trip to Malawi, where he visited wanted fugitive Shepherd Bushiri, as the official reason for his demotion. Shivambu dismissed this explanation, insisting that internal power struggles and financial misconduct were the real reasons behind his sidelining. Responding to claims that he was at odds with other members of the MK party, Shivambu dismissed allegations of factional disputes, asserting that he refused to entertain internal divisions. 'Since the redeployment, there have been moves to overhaul the structures I helped establish when I was appointed National Organiser and later Secretary-General,' he said. Shivambu announced his intention to convene a committee to assess whether he should establish a new political party. Despite his demotion and ongoing internal conflicts, he made it clear he remains committed to the MKP. Shivambu's tenure in the MK party has been fraught with controversy. Shortly after joining the party, he faced disapproval from some supporters, and social media posts by Duduzile Zuma Sambundla, daughter of former President Jacob Zuma, publicly insulted him. Shivambu expressed his loyalty to the MK party despite the turbulence, stating, 'I am not leaving the party. I will continue to fight for its integrity and transparency within its ranks.' IOL tried to contact MK Party spokesman, Nhlamulo Ndhlela to respond to the allegations. He had not responded at the time of publication. This is a developing story. [email protected] IOL Politics
The Star
05-06-2025
- Politics
- The Star
How 'violence' narratives threaten South Africa's tourism industry
Thabo Makwakwa | Updated 1 week ago Tourism experts have warned that South Africa's hospitality and business sectors must move away from a mindset of underselling their brand to the world, especially in light of recent comments at the White House claiming the country is a 'violent nation.' Last week, the world watched as President Cyril Ramaphosa's delegation to the Oval Office sought to counter narratives suggesting genocide in South Africa. During the meeting, delegation members took turns explaining the country's ongoing violence, a move that some believed complicated Tourism Minister Patricia de Lille's efforts to attract more visitors and boost the nation's economy. The meeting followed controversial allegations by then-President Donald Trump, who linked South Africa to 'genocide' and made a decision to offer refugee status to minority Afrikaners, claiming they faced persecution. Some experts and organisations, including the MK party and the EFF, have said these statements have contributed to the negative perception of South Africa internationally. In response to questions from IOL about the potential impact of these comments on tourism, the Department of Tourism declined to comment directly. De Lille's spokesperson, Tasneem Carrim, stated that only the department's marketing unit would respond, but despite numerous attempts by IOL, no response was received. Professor Christopher Isike of the University of Pretoria pointed out the missed opportunity to clarify key issues. 'There was a chance to state clearly that there's no evidence linking political land reform or social unrest to violence or genocide,' he said. Addressing concerns about false narratives affecting South Africa's global image, Michael Delaney, General Manager of Radisson RED Johannesburg-Rosebank, cautioned against narratives seeking to make South Africa look bad and argued the importance of highlighting the country's positive attributes. 'Many of the misconceptions can be countered by showcasing the friendliness of its people, natural beauty, and cultural diversity,' he said. He also stressed the need to reassure visitors that robust safety measures are in place. In what appeared to be a response to the images of white people being targeted in South Africa during the Oval meeting, Delaney expressed grave concern. ' he hospitality sector has expressed concern over the increasing use of AI-generated images and out-of-context, outdated photographs that portray South Africa as a land plagued with insurmountable problems. 'These misleading portrayals could damage the country's tourism industry. Delaney noted that most international visitors' perceptions of South Africa tend to improve significantly once they arrive. 'They often find the country welcoming and beautiful,' he explained. Having traveled extensively for work, he observed that people overseas are keen to experience South Africa firsthand. Furthermore, he said that many hotels host guests from the United States, Asia, Europe, and Africa, including airline crews and delegations, ensuring their safety is in the industry's best interest. 'Travelers can be great ambassadors for South Africa because they move around the world and share their experiences.' Delaney also encouraged the amplifying messaging around tourist safety in overseas markets. 'All our hotel groups prioritise the safety of visitors and staff. We have comprehensive security measures and provide guests with safety tips during check-in - such as using our complimentary shuttle services, utilising hotel safes, and avoiding wearing jewellery or carrying passports openly.' According to the Tourism, 2024 report released by Statistics South Africa (Stats SA), South Africa remained a top destination in 2024, with a total of 8,9 million tourists arriving in the country - up 5,1% from the previous year - but still falling short of the 10,2 million tourists recorded before COVID-19 disrupted global travel. In 2024, around 30,8 million travellers were recorded, a 23,7% drop from the 40,4 million in 2015. Arrivals reached 16,1 million, departures totalled 14,3 million, and transits stood at 469 000—significantly lower than the 20,5 million arrivals, 19,1 million departures, and 824 000 transits recorded in 2015. [email protected] IOL Politics
