The Minister of Public Works and Infrastructure Dean Macpherson, has launched an independent investigation into the Independent Development Trust (IDT) following corruption allegations that relate to more than R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender.
Macpherson spokesperson, James de Villiers said the minister’s actions follow an announcement by the IDT that the Department of Health intends to cancel the PSA Oxygen Plants tender.
He said the IDT has been implementing agent for the tender following allegations of corruption.
“The minister’s actions follow several attempts over the past weeks to obtain documentation from the IDT board regarding the PSA Oxygen Plant tender,” De Villiers said.
“The tender involved awarding contracts amounting to over R800 million to three companies to install oxygen plants in hospitals, despite two of the companies lacking South African Health Products Regulatory Authority (SAHPRA) registration, and one potentially submitting fraudulent documentation,” he said.
De Villiers added that when the allegations regarding the tender surfaced, Macpherson engaged with the IDT on multiple occasions, requesting supporting documentation for the PSA Oxygen Plant tenders to get to the bottom of this matter.
Macpherson, has dismissed the Independent Development Trust’s (IDT) intention to investigate the processes behind the awarding of the Pressure Swing Adsorption (PSA) Oxygen Plant bids, citing the board’s shortage of quorum and that it cannot investigate itself.
The IDT board currently comprises seven out of its 12 constituted members, with a quorum requiring eight eight members.
“This is an issue Macpherson is currently seized with and will announce a way forward in due course,” said De Villiers emphasising that Macpherson as the ITD’s executive authority will monitor and oversee the investigation.
Macpherson “will therefore launch a full independent investigation into the IDT and its corporate governance challenges to prevent any possible abuses and corruption going forward,” De Villiers said.
This move follows a report by Daily Maverick that three companies were awarded an R836 million PSA Oxygen Plant tender, despite two of them lacking SAHPRA registration.
Meanwhile, Macpherson expressed concern over governance within the IDT following his recent interactions, stating that they failed to finalise financial statements for the 2023 and 2024 financial year.
“It is patently clear that an organisation cannot and should not be allowed to investigate itself,” Macpherson said.
“Furthermore, due to the inquorate nature of the trust, it is not empowered to take such a decision,” he said.
He said that is the main reason he will be appointing an independent firm to investigate the alleged corporate governance failures that have led to the breakdown in trust.
Macpherson said he had asked Minister of Health, Dr Aaron Motsoaledi, whom he had briefed on numerous occasions and to whom he had provided as much information as possible for his collaboration and support.
“The way in which Minister Motsoaledi and I worked together in the best interests of South Africans on this matter is truly commendable to ensure access to life-saving oxygen, and to shed light and accountability on this tender when the facts became known to us,” said Macpherson.
He stressed that the government cannot allow close to a billion rand in public funds to be potentially lost through ‘alleged corrupt activities, especially concerning essential healthcare equipment intended to save lives.
Macpherson expressed that his department is working urgently to ensure accountability and to hold any wrongdoers responsible.
“As I stated when I took office on July 3, the era of corruption and abuse within the Department of Public Works & Infrastructure is coming to an end,” said Macpherson.
Politics
