Multi-million rand tender awarded to Digital Vibes was irregular: Mkhize
Health Minister Zweli Mkhize says the awarding of a multi-million-rand Covid-19 communications tender to a KZN-based company, was irregular.
Mkhize made public on Wednesday some of the details of an ongoing investigation into the Digital Vibes contract with the national Department of Health.
"In summary the investigation has found the that the tender / bidding process followed was in contravention of the Public Finance Management Act. The process of appointing Digital Vibes was irregular. The irregularity findings range from the inconsistencies in the bid committees, to lack of disclosure of conflict of interest.
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"Secondly the investigators have found that an amount of some R37 million paid to Digital Vibes constitutes fruitless and wasteful expenditure.
"Thirdly, in respect of COVID-19 related communications work that was performed by Digital Vibes the investigators noted that the service provider received requests for work from NDoH prior to their contract being expanded to include COVID-19 communication.
"These requests resulted in a financial commitment of some R35 million that NDoH ended up paying after the expansion was approved. The investigators therefore concluded that any amount which was paid to Digital Vibes for any work done in relation to COVID-19 communication prior to the approval of the expansion to include COVID-19 work was irregular as the expenditure was incurred in contravention of Treasury Regulations."
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A forensic investigation has found that the Health Department made irregular payments to the tune of over R150 million to Digital Vibes between January 2020 and February this year.
"Determining the method of procurement process followed in the appointment of the service provider as well as the agreement entered with NDoH and the service provider and determine whether the agreement and prevailing legislative and policy frameworks were adhered to."
Mkhize says the process that led to the awarding of the multi-million-rand contract was irregular. Legal efforts to recover the funds are under way.
"The details of this process will be disclosed at a later stage in order to protect the integrity of these critical actions."
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