The National Department of Health is pulling the plug on the R836m project to install oxygen plants at 55 government hospitals, telling the Independent Development Trust (IDT) it wants to dump the plan.
Daily Maverick and amaBhungane have previously revealed that the bulk of the R836m was intended to go to a “ghost company” that didn’t process the necessary accreditation to install such equipment.
The company, Bulkeng (Pty) Ltd, submitted allegedly fraudulent bid documents to clinch its R428m contract.
The bid process was administered by the IDT, which acted as the NDoH’s implementing agent for the project.
On Monday, the IDT’s board of trustees issued a media statement noting “with serious concern” the allegations Daily Maverick and amaBhungane had placed in the public domain.
According to the statement, the NDoH had earlier written to the IDT to communicate its intention to withdraw from the contract.
“The (IDT’s) Board of Trustees have since directed the Management of (the) IDT to accept the Department of Health’s intention as communicated by the department,” read the statement.
A quote attributed to the chairperson of the IDT’s board of trustees, Advocate Kwazi Mshengu, hinted at the serious allegations first raised in the joint investigations.
“These allegations cannot go untested as they bring the image of (the) IDT into disrepute. For (the) IDT to continue growing its business portfolio, it must demonstrate the capacity to deliver quality projects on time and within budget. The internal processes leading to the awarding of tenders and project management should be beyond reproach. Therefore, anything that smells of malfeasance should be nipped in the bud and those found to be responsible of such, shall face consequences management.”
The NDoH and the IDT will now scramble to extricate themselves from the project without exposing themselves to any possible legal action.
“The teams comprising the IDT as well as the department should follow all applicable legal prescripts to avoid any unintended consequences of realising the intention of the Department of Health, and to ensure there is no litigation against both the IDT and the department,” read the statement.
The matter is already being probed by the Hawks.
“The IDT Management maintains that procurement processes were followed with regard to the PSA Oxygen Plant programme. Therefore, the Board of Trustees also welcomes … the fact that the Hawks are investigating the allegations. The IDT team … will continue to cooperate with the Hawks and provide all the necessary information.”
The breaking development comes on the back of further queries Daily Maverick and amaBhungane sent to the the IDT and the NDoH last week, linked to further red flags regarding the project, and pointing to possible involvement of senior government officials.
See more from MedicalBrief archives:
Global Fund to probe fishy oxygen tender
‘Alleged death’ of key player in R836m oxygen tender project