R800m oxygen tender scandal probe uncovers fraud
An investigation has revealed procurement irregularities in a multi-million rand oxygen plant tender.
The contract was facilitated by the Independent Development Trust, an entity that manages the implementation and delivery of critically needed social infrastructure programmes on behalf of the government.
The IDT falls under the Public Works Department.
In 2022, the SOE entered into an agreement with the Health Department with one of the projects involving the delivery of Pressure Swing Adsorption Oxygen Plants to 60 hospitals across the country.
A probe was launched after the Daily Maverick reported that one of the companies that was awarded the R800 million tender appeared to be a ghost entity.
Another was said to have a questionable history with public contracts.
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Public Works Minister Dean Macpherson says delivery of the plants was not just a procurement exercise; it was a national health priority.
He says the investigation also revealed fraud and governance failures within the state-owned entity.
" The service providers that were appointed on the panel were, however, not required to provide evidence that they meet the SAPHRA requirements as set out in the infrastructure program implementation plan.
"Therefore, it appears that the IDT appointed eight service providers on the panel for the rollout of the PSA oxygen plant without confirming that any of the appointed service providers met the required criteria and the entire process, therefore, appears to be irregular."
The report recommends disciplinary action against the CEO, General Manager for Supply Chain Management, and other officials within the IDT.
Macpherson says he has written to the Hawks and briefed the Minister of Health.
He has also met with the newly appointed IDT Board to initiate consequence management.
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