Thabiso Mashatile
Pretoria – Thabiso Mashatile, the son of Deputy President Paul Mashatile, has drawn fresh scrutiny after personally signing a bid submission register on behalf of a company competing for a share of the controversial R836 million tender for Pressure Swing Adsorption oxygen plants. This tender, aimed at equipping government hospitals with life-saving oxygen generation systems, has been plagued by allegations of fraud, mismanagement, and irregular procurement practices, leading to its eventual cancellation and a forensic investigation that uncovered widespread wrongdoing.
The Controversial Tender and Its Origins
The R836 million tender was launched to install Pressure Swing Adsorption oxygen plants at 55 government hospitals across South Africa. These plants use a technology that allows facilities to produce oxygen on-site, reducing reliance on delivered cylinders, which became a critical need during the COVID-19 pandemic when oxygen shortages caused widespread distress. The project was funded by an international health organisation and initially budgeted at around R260 million, but costs escalated dramatically due to scope changes, poor planning, and questionable decisions.
The Independent Development Trust, a state entity under the Department of Public Works and Infrastructure, acted as the implementing agent for the Department of Health. Bids were invited, and the contract was divided among winners. One company received R428 million for 45 sites, while a joint venture got R152 million for the remaining 10 sites. However, the process quickly came under fire for favouring entities that did not meet key requirements, such as proper medical product registration and verifiable operations.
Thabiso Mashatile’s involvement came to light when he signed the bid register for a company with which he has close personal and professional ties. This company was among those vying for a portion of the tender, raising concerns about potential conflicts of interest given his father’s high-profile position in government. While the company did not win the contract, the signature has fueled debates about family connections influencing public procurement, even in unsuccessful bids.
Irregularities Uncovered in the Forensic Report
A forensic investigation into the tender revealed a shocking array of irregularities, including fraud, governance failures, and procurement breaches. The report highlighted how one of the awarded companies lacked the necessary certification from the health products regulatory authority, submitted misrepresented documents, and appeared to operate as a shell entity with no physical premises, contact details, or proven capacity to deliver. Despite these red flags, it secured the largest share of the project.
The investigation found that the bidding process was flawed from the start. Bidders were appointed without valid qualifications, and the evaluation ignored critical thresholds, such as grading limits for construction work. For instance, the main recipient exceeded its allowed contract value by more than double, yet was still selected. Misrepresentations included using another company’s license without permission, which amounted to clear fraud.
Costs ballooned from the initial estimate due to these lapses, with millions spent on preparations that never led to functional plants. By the time the probe wrapped up, not a single oxygen plant had been commissioned at the targeted hospitals. Many facilities still depend on expensive cylinder deliveries, defeating the project’s purpose of creating sustainable, cost-effective oxygen supplies.
Government Response and Actions Taken
In response to the findings, the Department of Health moved to cancel the entire tender, acknowledging the deep-rooted problems. The Public Works and Infrastructure Minister released the forensic report, calling it a case of systemic failure within the implementing agency. The agency’s chief executive was placed on suspension, and steps were taken to recover misspent funds, including over R35 million already reclaimed from one involved party, with more expected.
The report recommended disciplinary actions against implicated individuals and a review of procurement processes to prevent future abuses. Government officials have promised stricter oversight, including better verification of bidder credentials and independent audits for high-value tenders. This case has also prompted calls for broader reforms in how state entities handle infrastructure projects, especially those funded by international partners concerned about accountability.
Thabiso Mashatile’s role in signing the bid has added a layer of political intrigue. His connections to companies that have benefited from other government contracts in the past have been highlighted, though no direct wrongdoing has been proven in this instance. His father’s office has not commented specifically on the matter, but the Deputy President has previously denied any involvement in influencing tenders.
Broader Implications for Public Procurement
This scandal underscores ongoing challenges in South Africa’s public procurement system, where family ties to powerful figures often raise suspicions of nepotism and undue influence. Tenders meant to improve public health, like this one, are particularly sensitive because they directly affect vulnerable populations. The failure to deliver oxygen plants has left hospitals ill-equipped for emergencies, echoing the hardships faced during the pandemic.
Experts argue that such cases erode public trust in government and deter foreign funding for essential projects. To rebuild confidence, they suggest mandatory declarations of interest for all involved in bids, including family members of officials, and harsher penalties for fraud. The cancellation of this tender means starting over, potentially delaying vital upgrades and costing more in the long run.
For communities reliant on public healthcare, the real cost is in lives potentially at risk from inadequate oxygen supplies. As investigations continue, many hope this leads to genuine accountability and stronger safeguards to ensure public funds serve the people, not private interests.
Lessons Learned and the Path Ahead
The fallout from this tender serves as a stark reminder of the need for transparency in government dealings. With the project now scrapped, the focus shifts to recovering losses and relaunching under tighter controls. Officials have indicated that a new process will prioritise qualified, verifiable companies to avoid repeats of the ghost entity issues.
Thabiso Mashatile’s appearance in the bid process, while not leading to an award, highlights the scrutiny faced by relatives of leaders in business. It prompts questions about how to balance family rights to pursue opportunities with the public’s demand for fair play. As South Africa works to strengthen its institutions, cases like this test the commitment to clean governance.
In the meantime, hospitals wait for the oxygen plants they desperately need, hoping the next attempt delivers without the drama.
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