Cape Town – Parliament’s Portfolio Committee on Public Works and Infrastructure says it is deeply concerned about the lack of communication between Public Works and Infrastructure Minister Dean Macpherson and the Independent Development Trust (IDT).
“This has become apparent in the minister’s meeting with the committee on 27 November 2024 and in recent media reports alleging the involvement of the IDT in the tender process to install PSA Oxygen Plants at 55 public hospitals,” the committee said in a statement on Tuesday, (17 December 2024).
Recent media reports allege corruption related to the IDT tender for the more than R800 million Pressure Swing Adsorption (PSA) Oxygen Plants.
Contracts of more than R800 million were awarded to three companies to install oxygen plants in hospitals.
It has since been established that two of these companies were not registered, as required, with the South African Health Products Regulatory Authority.
The Minister informed the committee on 27 November about the alleged irregularities involving the installation of the PSA Oxygen tanks at public hospitals.
“These allegations were subsequently reported in the media including electronic media,” said the committee.
“Unfortunately, most reports and comments lacked substance and material evidence about the alleged irregularities.”
As the executive authority leading the Department of Public Works and Infrastructure (DPWI), the minister has substantial power that includes calling on the boards of entities and boards of Trustees to fully report to him on any matter.
“Since his appointment, the minister has not met with the IDT,” the committee said.
“This seems to be at the heart of the narrative that the IDT, its Board, and its officials acted irregularly in the tendering process.
“If material evidence shows culpability on their part, however, this committee will call for legal actions against the entity.
“Currently, it remains to search for what lies behind this narrative.”
To ensure the veracity of the information, the chairperson of the committee, Carol Phiri, had a meeting with IDT on Thursday, (12 December 2024), to get information from the entity on the allegations made by Daily Maverick.
“What has come to light is that the appointment of the service providers was undertaken based on the concurrence and budget confirmation received from the national Department of Health (DOH) and the funder of the project, the Global Fund (GF),” said the committee.
“A phased approach which includes the maintenance period was approved by both the DoH and the GF.
“Furthermore, the GF Country Team, after satisfying themselves with the processes undertaken, approved that the IDT could commence with the installation of the PSA Oxygen tanks in the form of a ‘No Objection Letter’.”
The committee said despite this important information being accessible from the IDT, the allegations seemed to have been stretched into the domain of the IDT as the implementing agent of the DOH.
“This is a serious matter as it continues to erode the integrity of the IDT, its Board, and its officials,” the committee noted.
“It is unfortunately also hurting the DPWI.”
The committee will soon request the IDT to formally report to it and put on record a sequence of events leading to the appointment of the service providers.
Phiri said: “I urge the public to allow law enforcement agencies to do their work as there is an ongoing investigation by the Hawks on this matter.
“The committee commends the Minister of Health for his media statement particularly radio interviews where he continuously urged the media not to speculate and put the IDT and the HoD through the court of public opinion, but to allow the investigations to unfold.”
She added: “As the Chairperson of the committee, I am concerned that the IDT’s Executive Authority, the Minister of Public Works, and Infrastructure, has not met with the entity reporting to him since his appointment in July 2024.
“The committee is concerned that the minister is talking to the entity through the media which is deeply concerning.
“The ongoing media onslaught against the IDT could have been avoided had the Minister requested to meet with the IDT to provide him with clarity on the PSA Oxygen project.”
The committee’s role is to hold the executive accountable and strengthen his policy leadership over the department and public works and infrastructure entities.
The committee called on Minister Macpherson, to urgently schedule a meeting with the IDT to resolve the communication gap that exists between the ministry and the entity.
The committee said it has been informed of a governance challenge as the IDT Board of Trustees has not formed a quorum since the resignation of one board member at the end of October 2024.
The committee called on the minister to appoint additional members to ensure the Board of Trustees quorate.
The committee, however, said it was encouraged by the work that the CEO and the Board of Trustees have done since their appointment.
The committee said the IDT was on the brink of collapse with only R2 billion worth of projects, and they managed to grow the portfolio of projects to R9 billion as of the 2023/24 financial year.
“This demonstrates the hard work and dedication of the leadership of the IDT,” the committee said, adding that it “applauds their efforts to steadily improve functioning as the social infrastructure delivery agency of the public works and infrastructure sector.”
Meanwhile, IOL reports that Minister Macpherson has announced an independent probe into the IDT following corruption allegations relating to the Pressure Swing Adsorption Oxygen Plant tender.
