Pretoria – Health Minister Dr. Aaron Motsoaledi has welcomed the discharge of a report instituted by Public Works & Infrastructure Minister Dean Macpherson, which made damnig findings concerning the Pressure Swing Adsorption (PSA) Oxygen Plant tender.
The report launched on Tuesday, 29 July 2025, by Minister Macpherson, reveals a monumental failure in governance, adherence to IDT insurance policies and National Treasury laws, which undermined the integrity of public procurement and threatened donor funds.
“The report due to this fact confirms that a number of firms awarded work underneath the PSA venture didn’t have legitimate SAHPRA [South African Health Products Regulatory Authority] licensing,” mentioned Minister Macpherson.
“One firm, Bulkeng (Pty) Ltd, submitted a SAHPRA licence belonging to Atlas Copco Industrial SA, with out the information or consent of Atlas Copco.
“This was a transparent misrepresentation. It was fraud.”
Moreover, Bulkeng meant to subcontract greater than 25% of its tasks to Brutes Air Solutions, however did not disclose this, in violation of the Preferential Procurement Regulations.
In addition, the investigators discovered that the bid analysis course of was deeply flawed.
“The SAHPRA compliance requirement – initially stipulated within the Project Execution Plan and the Department of Health’s Memorandum of Agreement, was intentionally faraway from the ultimate Request for Proposals,” the minister mentioned.
“This opened the door for ineligible bidders to take part and win large contracts.”
Commenting on the report, Minister Motsoaledi expressed his satisfaction that it’ll “lastly take away the cloud hanging above the tender whose final success would guarantee 55 hospitals within the nation would have the infrastructure to produce the much-needed oxygen for the chosen establishment”.
Minister Motsoaledi mentioned that these discovered to be on the improper facet of the legislation will likely be held to account.
“They didn’t simply commit monetary corruption, however disadvantaged South Africans of pressing life assist within the type of oxygen,” Minister Motsoaledi mentioned.
“As such, the Department of Health wish to see individuals being held to account and the legislation taking its course.”
Minister Motsoaledi mentioned he was “happy that the Department of Health misplaced nothing and all the cash that has been donated by the Global Fund is secure”.
Minister Motsoaledi added: “I’m happy to notice {that a} credible forensic investigation has gotten to the underside of this matter to carry this matter to a detailed.
“I’m additionally happy that the report has not pointed any fingers on the Department of Health for any monetary misdemeanour that will solid aspersions on the integrity of the Department, as a result of it will have soured our relationship with the Global Fund”.
This tender was meant to ship life-saving Pressure Swing Adsorption Oxygen Plants to 60 hospitals throughout the nation.
It was a venture price R836 million, of which R528 million had been allotted on to the IDT for implementation.
However, pink flags emerged when a number of the venture prices inexplicably elevated from R216 006 750 to R592 564 687 when the market was examined, which is a 174% improve from the preliminary estimated price range.
When experiences of attainable corruption broke out within the public media, the well being minister, in session along with his Public Works counterpart, eliminated the tender from the IDT and took it to the Development Bank of Southern Africa (DBSA) in order that the venture may proceed and ship the much-needed Oxygen.
He mentioned that with the report launched, the remaining work of the DBSA will certainly be expedited to conclude the venture as expeditiously as attainable to the advantage of the individuals of South Africa.
Meanwhile, the IDT Board of Trustees mentioned it famous the intense findings highlighted by Minister Macpherson, together with proof of procurement irregularities, governance failures, and regulatory breaches associated to the PSA Oxygen Plant venture.
“We echo the Minister’s dedication to scrub governance, institutional accountability and the safety of public and donor funds.
“The Board has not but concluded its inside deliberations.
“In line with our fiduciary tasks, we’re rigorously processing the contents of the report and will likely be convening formally to contemplate the suitable subsequent steps.
“We are dedicated to making sure a lawful, truthful, and clear response guided by each the suggestions of the report and the necessities of our inside insurance policies.”
The board assured all stakeholders that it takes these issues significantly.
The Board mentioned it was decided to revive institutional credibility, rebuild confidence within the IDT’s procurement and governance programs, and uphold the belief positioned in us by the South African public.
Members of the IDT Board of Trustees embrace:
- Ms. Zimbini Hill (Chairperson),
- Prof. Raymond Nkado (Deputy Chairperson),
- Ms. Lerato Kumalo, Ms. Thobile Maloka,
- Dr. Deenadayalen Konar, Mr. Neil Jansen,
- Mr. Derek Naidoo,
- Ms. Sekadi Phayane-Shakhane,
- Ms. Bongekile Zulu,
- Mr. Matodzi Ratshimbilani,
- Prof. Stella Bvuma,
- Mr. Wayne Manthe
- Ms. Tebogo Malaka (Chief Executive Officer)
