• Public Works & Infrastructure Minister Dean Macphersony has welcomed the Department’s appointment of PwC to investigate the circumstances surrounding an R800-million Oxygen Plant tender at the IDT.
• This follows IDT’s admission last year that the Oxygen Plant tender—where three companies were appointed despite two lacking South African Health Products Regulatory Authority (SAHPRA) registration—should be investigated.
• The independent investigation, which needs to be completed within eight weeks, will,among other tasks, determine whether any irregularities occurred during the process to award the tender and whether any officials need to be held accountable.

Following allegations made last year regarding possible irregularities in the awarding of the Pressure Swing Adsorption (PSA) Oxygen Plant bids, Public Works & Infrastructure Minister Dean Macpherson has welcomed the Department’s appointment of PwC to conduct a forensic investigation into the circumstances surrounding the deal and to provide recommendations for corrective measures to be taken.

This follows an admission by the IDT itself, in a statement last year, that concerns exist regarding the R800-million tender awarded to three companies and should be investigated.

These concerns include two companies lacking SAHPRA registration and one potentially having submitted fraudulent documentation.

The investigation by PwC, which must be completed within eight weeks and has followed public tendering processes, will, among other tasks:

• Identify the extent of any irregular or illegal activity and the involvement of IDT officials and/or external service providers in relation to the scope of work.
• Recommend appropriate courses of action against IDT officials and external service providers where irregularities are confirmed.
• Determine the full history surrounding the appointment of external services and whether due process was followed.
• Establish whether the Head of Department or any officials caused the IDT to incur irregular, fruitless, or wasteful expenditure during the administration of the tender, the appointment of service providers, and the management of service providers’ contracts.
• Ascertain whether any IDT officials and/or other individuals contravened laws or duties related to the administration of the tender, the appointment of contractors, or subsequent events. 
• Determine the cause, nature, extent, and value of financial losses, including potential losses incurred by the IDT in relation to the tender.

“The independent investigation will, once and for all, determine whether irregularities occurred during the Oxygen Plant tendering process and whether any further action should be taken against complicit individuals. This move forms part of the critical steps we are taking to improve transparency and governance within the Department, ensuring no wastage of public funds has occurred,” Minister Macpherson said.

“As the Minister, I cannot turn a blind eye when serious allegations are raised regarding close to R1 billion of public money. This is why the Department of Public Works & Infrastructure will not be distracted by the noise surrounding the Oxygen Plant tendering process but will take all necessary actions to uncover the truth and hold officials accountable where required. The independent investigation should, therefore, be welcomed, as it will also clear any innocent individuals,” he concluded.

Media enquiries
James de Villiers: Spokesperson to the Minister
Email: james.devilliers@dpw.gov.za
Cell: 082 766 0276 

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