Public Works and Infrastructure Minister Dean McPherson has revealed damning findings from a forensic investigation into the controversial R800 million Pressure Swing Absorption (PSA) oxygen plant tender awarded by the Independent Development Trust (IDT). The probe, conducted by PwC, uncovered widespread irregularities, including fraud, maladministration, and regulatory breaches in the procurement process.
Key Findings of the Forensic Report
The investigation, launched in January 2025, scrutinized the IDT’s handling of the tender, which was meant to supply life-saving oxygen plants to 60 hospitals nationwide. Key findings include:
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Fraudulent SAPRA Licensing
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One company, Bulking Pty Ltd, submitted a falsified South African Health Products Regulatory Authority (SAPRA) license belonging to Atlas Copco Industrial SA without authorization.
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Multiple awarded companies lacked valid SAPRA licenses, rendering them ineligible for the tender.
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Flawed Bid Evaluation Process
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Critical compliance requirements were deliberately omitted from the final Request for Proposals (RFP), allowing unqualified bidders to secure contracts.
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Bid evaluation committee records were either missing, incomplete, or improperly documented.
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Budget Explosion Without Justification
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The initial budget of R216 million ballooned to R592 million—a 174% increase—without proper approval or value-for-money assessments.
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Gross Mismanagement by IDT Leadership
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The CEO failed to exercise oversight, relying on flawed internal assurances instead of verifying documentation.
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IDT’s General Manager for Supply Chain Management, misled stakeholders and ignored red flags raised by the Department of Health.
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Minister McPherson Takes Action
McPherson announced immediate steps to ensure accountability:
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Criminal Referrals: The report has been handed to the Hawks to supplement an ongoing criminal investigation.
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Disciplinary Action: The new IDT board has been instructed to take action against implicated officials, including Malaka and Dr. Cece.
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Systemic Reforms: Mandatory training for procurement officials and stricter enforcement of compliance measures.
Political Pushback and Disinformation Campaign
McPherson revealed that he faced a coordinated disinformation attack during the investigation, including AI-generated voice notes, fake news articles, and smear campaigns allegedly amplified by political parties such as the EFF and ActionSA. Despite these challenges, he vowed to continue fighting corruption.
The Way Forward
The Minister emphasized that the IDT must be salvaged to fulfill its mandate of delivering critical infrastructure like clinics and schools. A newly appointed board, chaired by Zimbini Hill, has been tasked with implementing the report’s recommendations and restoring public trust.
Conclusion: A Stand Against Corruption
“This is not just about a tender—it’s about the kind of state we are building,” McPherson declared. “If we tolerate corruption, we betray the public. That is why we acted, and that is why accountability will follow.”
The Department of Health has since reassigned the oxygen plant project to the Development Bank of Southern Africa (DBSA) to ensure proper execution.
Next Steps
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Hawks investigation into potential criminal charges.
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Disciplinary hearings for implicated IDT officials.
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Strengthened procurement controls to prevent future abuses.
Minister McPherson’s uncompromising stance signals a renewed effort to root out corruption in South Africa’s public sector.