Public Works and Infrastructure Minister Dean Macpherson has welcomed the department’s appointment of PwC to investigate a controversial R800m oxygen plant tender awarded by the Independent Development Trust (IDT).
The investigation follows the IDT’s admission last year that three companies were awarded the tender, despite two lacking registration with the South African Health Products Regulatory Authority (SAHPRA).
The department stated the independent probe is expected to conclude within eight weeks. Its objectives include uncovering irregularities in the tender process and determining whether officials should be held accountable.
Concerns about the tender stem from allegations of irregularities, including claims that two companies lacked SAHPRA registration and that one may have submitted fraudulent documentation.
“This follows an admission by the IDT itself last year that concerns exist regarding the R800m tender and that these concerns warrant investigation,” the Department of Public Works and Infrastructure said in a statement.
The PwC investigation will focus on:
- Tender process compliance: Whether proper procedures were followed in appointing service providers.
- Financial misconduct: Whether irregular, fruitless, or wasteful expenditure was incurred.
- Legal compliance: Whether officials or external parties violated laws or duties.
- Financial losses: The extent of financial losses incurred by the IDT.
- Irregularities: Uncovering any illegal or irregular activity.
- Recommendations: Proposing accountability measures where irregularities are confirmed.
“The independent investigation will determine whether irregularities occurred during the oxygen plant tendering process and whether further action is required against those implicated,” Macpherson said.
He stressed the importance of transparency and accountability, noting the investigation is vital to ensuring public funds are responsibly managed.
“As minister, I cannot turn a blind eye when serious allegations arise involving close to R1b of public money,” Macpherson stated.
He added that the investigation would not only expose wrongdoing but also restore public trust and ensure fair procurement processes.
“The independent investigation should be welcomed as a vital tool in restoring public trust and addressing any misconduct in the oxygen plant tendering process,” the minister concluded. – SAnews.gov.za
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