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IOL News
2 days 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
The Herald
2 days ago
- Business
- The Herald
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. TimesLIVE
TimesLIVE
2 days 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.
The Herald
19-07-2025
- Health
- The Herald
Mpox vaccines rolled out in Gauteng, Western Cape and KwaZulu-Natal as cases rise
The department of health says it has launched a mpox vaccination drive in the three provinces hardest hit by the virus which are Gauteng, the Western Cape and KwaZulu-Natal. 'The department has embarked on a vaccination drive against mpox disease as the number of laboratory-confirmed cases is gradually rising in the country,' it said. The vaccination programme is being rolled out at selected public health facilities, travel clinics and private providers. The department confirmed that two new cases had been detected in Johannesburg and Cape Town, increasing the total number of confirmed mpox infections in South Africa to 10 since the beginning of 2025. According to the department, the two latest patients are aged 32 and 45 with no recent travel department also said that due to limited supply with 10,500 doses of the Imvanex® vaccine donated by the Africa Centres for Disease Control the rollout will be done in phases, starting in areas with confirmed outbreaks.'Priority will be given to people at higher risk of contracting the virus, including those who came into close contact with confirmed cases, individuals with multiple sexual partners, and travellers heading to regions experiencing active mpox outbreaks,' said the department.'Where indicated, vaccination will be offered to pregnant women and children older than two years.' . The South African Health Products Regulatory Authority (SAHPRA) approved the importation of the vaccine via a special section 21 application, allowing the use of a product not yet registered in South Africa. The National Control Laboratory tested the doses for safety and efficacy before public use.'The vaccine was found to be safe and is well tolerated in the vast majority of people,' said the a virus previously known as monkeypox, typically presents with a rash lasting two to four weeks, fever, swollen lymph nodes, body aches, low energy and headache. The rash can appear as painful blisters or sores, particularly on the face, hands, feet, groin and genital or anal not officially classified as a sexually transmitted infection, mpox can spread through close physical contact including sex, hugging, kissing and even sharing contaminated bedding, towels or National Institute for Communicable Diseases (NICD) recorded 25 confirmed cases and three deaths in 2024. 'Vaccination helps to control the spread of this preventable and manageable disease. Vaccinated individuals are protected from becoming infected and from developing severe complications,' said the department. Common side effects after immunisation may include pain or redness at the injection site, fever, muscle aches and nausea but these usually resolve without treatment in a few days.'These side effects can be managed by having enough rest, staying hydrated and taking medication for pain, if needed. Individuals are encouraged to report any suspected side effects to a healthcare professional or through the Med Safety App, which is available for free on Android and iOS,' said the department. The department is urging residents in Gauteng, Western Cape and KwaZulu-Natal to remain vigilant. 'Those who suspect they are at risk of infection should consult their nearest health facility for screening, testing, and to check if they qualify for vaccination.' it said. TimesLIVE
TimesLIVE
18-07-2025
- Health
- TimesLIVE
Mpox vaccines rolled out in Gauteng, Western Cape and KwaZulu-Natal as cases rise
The department of health says it has launched a mpox vaccination drive in the three provinces hardest hit by the virus which are Gauteng, the Western Cape and KwaZulu-Natal. 'The department has embarked on a vaccination drive against mpox disease as the number of laboratory-confirmed cases is gradually rising in the country,' it said. The vaccination programme is being rolled out at selected public health facilities, travel clinics and private providers. The department confirmed that two new cases had been detected in Johannesburg and Cape Town, increasing the total number of confirmed mpox infections in South Africa to 10 since the beginning of 2025. According to the department, the two latest patients are aged 32 and 45 with no recent travel history. The department also said that due to limited supply with 10,500 doses of the Imvanex® vaccine donated by the Africa Centres for Disease Control the rollout will be done in phases, starting in areas with confirmed outbreaks. 'Priority will be given to people at higher risk of contracting the virus, including those who came into close contact with confirmed cases, individuals with multiple sexual partners, and travellers heading to regions experiencing active mpox outbreaks,' said the department. 'Where indicated, vaccination will be offered to pregnant women and children older than two years.' . The South African Health Products Regulatory Authority (SAHPRA) approved the importation of the vaccine via a special section 21 application, allowing the use of a product not yet registered in South Africa. The National Control Laboratory tested the doses for safety and efficacy before public use. 'The vaccine was found to be safe and is well tolerated in the vast majority of people,' said the department. Mpox, a virus previously known as monkeypox, typically presents with a rash lasting two to four weeks, fever, swollen lymph nodes, body aches, low energy and headache. The rash can appear as painful blisters or sores, particularly on the face, hands, feet, groin and genital or anal areas. Though not officially classified as a sexually transmitted infection, mpox can spread through close physical contact including sex, hugging, kissing and even sharing contaminated bedding, towels or clothing. The National Institute for Communicable Diseases (NICD) recorded 25 confirmed cases and three deaths in 2024. 'Vaccination helps to control the spread of this preventable and manageable disease. Vaccinated individuals are protected from becoming infected and from developing severe complications,' said the department. Common side effects after immunisation may include pain or redness at the injection site, fever, muscle aches and nausea but these usually resolve without treatment in a few days. 'These side effects can be managed by having enough rest, staying hydrated and taking medication for pain, if needed. Individuals are encouraged to report any suspected side effects to a healthcare professional or through the Med Safety App, which is available for free on Android and iOS,' said the department. The department is urging residents in Gauteng, Western Cape and KwaZulu-Natal to remain vigilant. 'Those who suspect they are at risk of infection should consult their nearest health facility for screening, testing, and to check if they qualify for vaccination.' it said.
