An investigation has revealed key roles played by senior officials from the National Department of Health (NDoH) and the Independent Development Trust (IDT) in an allegedly unlawful project to install oxygen plants at state hospitals. The project, initially funded by the Global Fund and expected to cost R216-million, saw its budget swell to R836-million, raising concerns over cost overruns and procurement irregularities.
Signed appointment letters and other documents show that NDoH Director-General Dr. Sandile Buthelezi and IDT CEO Tebogo Malaka were instrumental in advancing the project, which faced multiple issues despite significant budget increases. The main contractor, Bulkeng, was awarded R428-million of the project, even after failing to meet several of the original requisites. Meanwhile, another contractor, a joint venture between Maziya General Trading and On Site Gas Systems International, secured a R152-million contract to install plants at additional hospitals.
The IDT, a government agency responsible for infrastructure projects, initially set the project’s budget at R216-million, based on a 2022 implementation plan. However, this figure grew substantially by the following year when the IDT altered the scope of the project, raising the average cost per hospital from R3.61-million to R10.5-million. The reasons behind this nearly 300% increase in costs remain unclear, and both the IDT and NDoH have struggled to provide satisfactory explanations.
Further investigation has uncovered that Buthelezi and Malaka were involved in securing the controversial contracts despite warnings over the escalating costs. Buthelezi is already under investigation for allegedly soliciting a bribe related to another IDT project and was suspended in 2021 over his involvement in the Digital Vibes scandal, though he was later reinstated after an internal hearing cleared him of wrongdoing.
The IDT’s actions have come under scrutiny for sidestepping key requirements, including the need for contractors to meet certain regulatory standards. Documents indicate that Bulkeng submitted crucial paperwork over a year after the tender had closed, raising further questions about the integrity of the bidding process.
Despite multiple requests for comment from the IDT and NDoH, both agencies failed to respond by the investigation’s deadline. However, the IDT’s board of trustees issued a statement expressing serious concern over the allegations. Board chairperson Advocate Kwazi Mshengu emphasized that any potential malfeasance would be thoroughly investigated and those responsible would face consequences.