- A PwC investigation found irregularities in a R800-million oxygen plant tender and recommended action against IDT CEO Tebogo Malaka and GM Molebedi Sisi.
- Minister Dean Macpherson cited oversight failures in procurement protocols, risking hospital projects worth R836 million.
- Disciplinary steps are being taken, and Macpherson reaffirmed a commitment to fight corruption and maintain accountability in governance.
A forensic investigation into a more than R800-million oxygen plant tender awarded by the Independent Development Trust (IDT) has recommended that disciplinary action be taken against IDT CEO Tebogo Malaka, general manager for supply chain management Molebedi Sisi, and other officials.
Minister of Public Works and Infrastructure Dean Macpherson announced the findings of the reports during a press briefing on Tuesday.
This comes after a forensic investigation conducted by PricewaterhouseCoopers (PwC) into the tender.
According to snippets of the report shared by Macpherson at Tuesday’s press briefing, Malaka failed to exercise oversight. The report confirmed that she relied entirely on internal supply chain management staff to assure her that the process had followed proper procurement protocol.
“She did not verify any of the documentation. She did not act on the red flags raised by the Department of Health. She did not convene the necessary risk committees to assess the matter. In this, she was not alone,” Macpherson read from the report.
READ | Minister Dean Macpherson launches probe over alleged hospitals oxygen plant corruption
Macpherson revealed the report also singles out the general manager for supply chain management at the IDT for his role in misleading internal stakeholders and failing to act in accordance with his responsibilities.
“Dr Sisi advised against cancelling the request for quotations [RFQ] process despite clear warnings from the Department of Health.
“He assured the CEO and evaluation committees that the procurement process was compliant, when in fact key regulatory requirements – such as valid SAHPRA (South African Health Products Regulatory Authority) licences – had not been enforced,” Macpherson said.
He added that both Malaka and Sisi approved contracts and accepted flawed internal assurances.
Macpherson said:
It is important to note that no Global Fund resources were distributed for this project. That is why we were justified to act when we did, to safeguard donor funding, which means that the entire allocation will be spent but through the DBSA (Development Bank of Southern Africa) to procure the oxygen systems.
He said the report not only identifies the failings but also makes clear and actionable recommendations to the Department of Public Works and Infrastructure.
Macpherson said when he took office as public works and infrastructure minister just over a year ago, he made it clear to the department, its entities, and the country at large that they would draw a hard line in the sand when it came to poor administration and corruption.
“I said that we would restore public trust in this department and every institution that reports to it, by ensuring they run an organisation that is professional, transparent, and for the benefit of the public – not for the benefit of a few.
“From the moment I stepped into this role, I was already aware of long-standing and serious allegations of maladministration, financial misconduct, and corruption at the [IDT].
“Those concerns have haunted the IDT for a number of years. Incomplete projects, tender irregularities, and consistent audit disclaimers had tarnished the entity’s credibility and shaken confidence across government and civil society,” Macpherson said.
He explained the tender was intended to deliver life-saving pressure swing adsorption oxygen plants to 60 hospitals nationwide.
“It was a project worth R836 million, of which R528 million had been allocated directly to the IDT for implementation. The delivery of these plants was not just a procurement exercise – it was a national health priority.
The terms of reference for the investigation were also broad, said Macpherson. They were to investigate whether fraud, corruption, maladministration, or regulatory non-compliance had occurred and whether internal controls had failed.
In December, Macpherson launched an independent investigation into the IDT over allegations of corruption involving the pressure swing adsorption oxygen plant tender.
By April, Macpherson had also moved to stabilise the entity’s board, removing two members appointed by his predecessor, Sihle Zikalala, now his deputy, and ensuring that it had a quorum, which had been lacking since 2023.
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“Over the next six months, investigators conducted over 40 interviews with departmental officials, IDT executives, contractors, and oversight stakeholders,“ Macpherson said.
Investigators also reviewed more than 90 procurement documents, analysed financial records, and conducted verifications of Companies and Intellectual Property Commission, Construction Industry Development Board, and South African Health Products Regulatory Authority.
“But even as the investigation got under way, a disturbing counter-campaign was launched. From early February onwards, I became the target of coordinated disinformation attacks, fabricated call logs were published, and AI-generated voice notes were circulated online.
The minister added that anonymous “whistleblowers” released baseless allegations against him and his office.
“Fake news articles were published, which one major media house had to later withdraw because the claims could not be substantiated. This campaign against me was amplified by political parties, including the EFF and ActionSA, who filed bogus complaints against me and claimed that I was interfering in the tender process.
“It is deeply concerning that we seem to have learnt very little from the modus operandi of state capture. What I did do, and what I will continue to do, is demand accountability. I did not take an oath of office to protect wrongdoing.
Macpherson said:
I took an oath to protect the Constitution and the people of South Africa, and I will not apologise for that.
Macpherson has since written to the Hawks and briefed the Minister of Health, Dr Aaron Motsoaledi.
In addition, he has met with the newly appointed IDT Board to initiate consequence management.
Shortly after Macpherson’s briefing, the IDT released a statement confirming receipt of the report.
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