R800 Million Oxygen Plant Tender Scandal: Macpherson to reveal PwC investigation results

The Minister of Public Works and Infrastructure, Dean Macpherson, is expected to brief the media on Tuesday afternoon to disclose the final results of a forensic investigation into the controversial R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender awarded by the Independent Development Trust (IDT). 

The investigation was conducted by global consultancy firm PricewaterhouseCoopers (PwC), following months of scrutiny and allegations of procurement irregularities by the entity’s officials.

The department announced Monday that the briefing would detail the investigation’s findings and outline the subsequent actions to ensure accountability within the IDT, he agency responsible for implementing the oxygen plant rollout in partnership with the Department of Health.

Minister Macpherson stated his government’s commitment to rooting out corruption and restoring integrity in public procurement processes.

“The Minister will outline the findings of the investigation and the steps that will be taken to ensure accountability within the IDT,” the department stated in a press release.

The controversy centers around awarding tenders to Bulkeng (Pty) Ltd, Maziya General Trading, and On Site Gas Systems International, companies accused of lacking the necessary South African Health Products Regulatory Authority (SAHPRA) licenses to operate. 

These companies were selected to install complex PSA oxygen plants at various state hospitals nationwide, a critical infrastructure project amid ongoing health sector needs.

Reports suggest that the tender process may have been compromised, and questions have been raised about the transparency and fairness of the selection. 

Critics argued that due diligence may have been overlooked, raising concerns over potential corruption and misappropriation of public funds.

According to his department, Minister Macpherson engaged directly with the IDT in response to these allegations, requesting supporting documentation and scrutinising the tender process. 

However, efforts to have the IDT conduct its internal investigation were resisted. The Minister cited a lack of quorum on its board, claiming it could not investigate itself, and thus, the Minister took decisive action.

“I have launched a full independent investigation into the IDT and its governance practices to prevent any possible abuses and ensure transparency moving forward,” Macpherson stated.

The briefing is expected to reveal whether procurement laws were breached and whether individuals or entities will face disciplinary or legal action. 

thabo.makwakwa@inl.co,za

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