A forensic investigation is to be carried out by PwC – which has been appointed by the Department of Public Works – into the controversial Independent Development Trust’s (IDT) R836m oxygen plants project.
The IDT, which reports to the Department of Public Works, acted as an implementing agent for the National Department of Health when it appointed contractors to install Pressure Swing Adsorption oxygen plants at 55 state hospitals countrywide.
In October, Daily Maverick reported that R428m of the spend was meant to go to Bulkeng Pty Ltd, an unknown company without the required accreditation to deal in medical equipment.
The contracts were ultimately signed off by IDT CEO Tebogo Malaka and Dr Sandile Buthelezi, NDoH’s director-general, despite concerns over enormous cost escalations and the main contractor’s credentials.
Bulkeng’s sole director, Nathi Ndlovu, was found dead in a Johannesburg park just days after Daily Maverick’s report raised concerns over IDT’s oxygen plants endeavour. The police are treating the death as a suicide.
In December, the Department of Health told the IDT it wanted to withdraw from the project.
“The independent investigation, which needs to be completed within eight weeks, will… determine whether any irregularities occurred during the process to award the tender and whether any officials need to be held accountable,” according to a statement from James de Villiers, spokesperson for Public Works Minister Dean Macpherson.
PwC has been tasked to determine the full history surrounding the appointment of Bulkeng and other service providers, and whether due processes were followed.
The probe also has to “identify the extent of any irregular or illegal activity and the involvement of IDT officials and/or external service providers in relation to the scope of work”.
If it identifies any breaches, it is to “recommend appropriate courses of action against IDT officials and external service providers”.
See more from MedicalBrief archives:
Dodgy R836m oxygen plants deal cancelled
Global Fund to probe fishy oxygen tender
‘Alleged death’ of key player in R836m oxygen tender project