Further accusations of irregularities in the awarding of multimillion-rand coal tenders have been levelled against Limpopo’s Health Department, with detractors alleging the process flawed and the department had “hand-picked” the bidders.
The five-year tender that was advertised in mid-2022 for a contract to deliver boiler coal to Limpopo hospitals is estimated to be worth more than R20m.
However, the Forum for Limpopo Entrepreneurs (FOLE), mandated to be the watchdog of tender processes between government and business contractors to ensure transparency, has red-flagged the process, saying that, among other things, the flawed evaluation process involved a “price negotiation committee”, unheard of in the tendering process.
The department is also accused of fixing prices, and having apparently told some of the bidders their prices were below market value but then awarding the contract to a bidder with the lowest price.
In response, the department told IOL all issues relating to the coal tender were under investigation by the Special Investigations Unit (SIU).
An official document alleged that three companies that were more successful in the bidding process, Nebo Coal, Serenity Coal and Jamiscore, all shared the same business address: 17 Klippoortjie Farm.
Other documents stated that the members of the department’s tender adjudication committee, chaired by Cornelius Maphoto, were also members of the “price negotiating committee”, which the forum saw as a conflict of interest.
The issue first made headlines last July, when it was revealed that the coal supply tender for 14 hospitals included a number of facilities that did not even use the fuel source.
The alarm was raised by NGO Conty Lebepe Foundation, which alerted Limpopo Health MEC Phophi Ramathuba about the matter, who then instructed HoD Mutheiwana Dombo to investigate
And in another questionable tender deal, in 2021, former HoD Thokozani Mhlongo was suspended after awarding a R185m contract to supply Covid-19 personal protective equipment (PPE), despite the awardee not appearing on the official suppliers’ database.
IOL article – Limpopo health department accused of awarding tender irregularly (Open access)
See more from MedicalBrief archives:
Probe launched after Limpopo Health coal tender raises red flags
Limpopo health chief resigns amid multimillion rand PPE tender probe
Public Protector clears Limpopo Health of irregular PPE tender allegations
No action against Limpopo Health officials involved in dodgy tender