Ministers collaborate to deal with oxygen tender controversy

Motsoaledi and Macpherson addressing allegations of irregularity, corruption

In a joint effort to ensure accountability and transparency in the tendering process for the PSA oxygen supply project, health minister Dr Aaron Motsoaledi and public works and infrastructure minister Dean Macpherson are working together to address allegations of corruption and irregularities.

The two ministers have taken swift action in response to widespread concerns over the awarding of the tender to the Independent Development Trust (IDT), which was intended to enable hospitals across the country to produce their own oxygen.

Motsoaledi, in a statement released by the national department of health spokesperson Foster Mohale, emphasised the importance of co-operation between the ministries.

“The minister of health and the minister of public works and infrastructure have been in constant contact to ensure that the right course of action is taken in the best interests of the South African people,” said Mohale.

The PSA oxygen project was initially handed over to the IDT to manage procurement, award the contract and oversee its implementation on behalf of the health department.

However, after a story by the Daily Maverick alleging corruption and irregularities in the tender process, both ministers decided to take action.

“Since the IDT is an entity that reports to the minister of public works and infrastructure, the minister of health discussed with the minister of public works and infrastructure to take the lead in investigating these allegations,” said Mohale.

Recognising the serious nature of the allegations, the two ministers agreed that a thorough investigation was essential.

Macpherson has expressed his concern about governance in the IDT, including its failure to finalise financial statements for the 2023/2024 financial year.

“My interactions with the IDT over the past two months have raised serious concerns about governance within the organisation. He also pointed out that the IDT’s board was not quorate, preventing the organisation from conducting a credible internal investigation,” said Macpherson. 

To address these concerns, Macpherson announced that an independent firm would be appointed to investigate the alleged corporate governance failures.

“It is patently clear that an organisation cannot and should not be allowed to investigate itself,” he said, reinforcing the need for external oversight.

The two ministers are united in their commitment to ensuring that public funds are used effectively and transparently. Macpherson stressed the importance of holding accountable those responsible for any potential corruption, particularly given the life-saving nature of the project.

“We simply cannot allow close to a billion rand in public funds to be potentially lost through alleged corrupt activities, particularly when it involves essential healthcare equipment intended to save lives,” said Macpherson.

Amid growing concerns about the project’s future, Motsoaledi took a proactive step to mitigate further delays.

“The minister of health contacted his counterpart in public works to suggest that the contract be terminated and for the department of health to approach other state entities which deal with similar matters,” said Mohale.

This decision, made in consultation with Macpherson, aims to prevent further disruption to the timely delivery of oxygen to South African hospitals.

The urgency of the situation stems not only from the allegations of misconduct but also from the time-sensitive nature of the funding. The PSA oxygen project is backed by the Global Fund, a Geneva-based health financing organisation that has committed significant resources to address critical health issues like HIV, TB and malaria in South Africa.

“The minister of health then got very worried because this project is funded by the Global Fund, which, on average and presently, gives R18bn for this purpose. It was through the generosity of the Global Fund that this funding is extended to the supply of oxygen,” said Mohale.

The Global Fund’s funding is time-bound, with the project scheduled to be completed by November 2025.

As the investigation continues, both ministers have called for full accountability.

“We are working urgently to ensure accountability and to hold any wrongdoers responsible,” Macpherson said.

As the investigation progresses, South Africans can expect the law to take its course. “We will eagerly follow the events and believe that the law must take its course,” said Mohale.

TimesLIVE