Global Fund mounts own probe into R428m oxygen tender

The Geneva-based Global Fund is sending its own investigators to SA to probe allegations that its money was used to issue a multimillion-rand tender for an unaccredited company to supply oxygen to at least 55 public hospitals.

This is according to health minister Aaron Motsoaledi, who revealed this in the National Assembly on Wednesday afternoon during an oral question and answer session with MPs.

Motsoaledi was responding to a question from DA MP Michele Clarke after reports that the Independent Development Trust (IDT), an entity of the public works department, had issued for a company to install highly technical pressure swing adsorption (PSA) oxygen plants at 55 government hospitals.

This was apparently despite the implicated company scoring the more than R400m contract while it did not have the required accreditation from the SA Health Professions Regulatory Authority.

“The fact that we have an international body involved means that there’s no place to hide if there was corruption,” said Motsoaledi.

Motsoaledi told MPs that when Daily Maverick broke the stunning news a fortnight ago, President Cyril Ramaphosa ordered him to probe the matter and submit a report to him within 14 days.

On top of that, the global fund set up to fight HIV, TB and malaria, which is funding the oxygen supply project at the 55 public hospital, has also resolved to send its own team to SA to investigate the matter.

“When this story broke out, it disturbed all of us, including the president who wrote me a letter [asking me] to present to him a report within 14 days,” Motsoaledi told the National Assembly, sitting in a makeshift marquee in Cape Town.

The IDT is managing the oxygen supply tender on behalf of the department of health, in its capacity as an implementing agent of the department of public works. “For this reason, it’s the minister of public works, minister [Dean] Macpherson, who is investigating this issue — but I talk to him every day about it, including even today, to get to the bottom of this,” added Motsoaledi.

The health minister said the Global Fund, which funds health projects in South Africa to the tune of R10bn every three years, was also conducting its own probe into the oxygen tender to ensure its money was not being “wasted”.

“In the aftermath of Covid-19, they were worried when they heard stories that in some hospitals, they were short of oxygen for patients who needed it. That’s why they decided that part of the money must now be used to put oxygen plants in 55 hospitals, so that in future those hospitals will no longer issue tenders for oxygen by be self-sufficient.”

Motsoaledi also revealed that when the story broke, he was in Brazil in the company of the leadership of the Global Fund, among others, and this did not sit well with them.

“We met and they promised that they too will send their own inspectors to investigate this matter, so I can assure you that’s being investigated by minister Macpherson because IDT accounts to him. I am working with him.

“The Global Fund is going to independently investigate the matter because this is their money, then we’ll be able to bring out the finding. As an international organisation, they wouldn’t like or allow for their money to be misused, so let’s wait for them and we’ll see the results and announce to you.”

Rise Mzansi leader Songezo Zibi, chairperson of parliament’s standing committee on public accounts, wanted to know if the tender had been stopped or suspended pending the parallel probes.

Motsoaledi responded: “Well, I don’t want to mislead the house, but as far as I know the tender has just been awarded and the work had not yet started when this story came out. I am speaking under correction because I don’t want to mislead parliament, but I can go and find and give a precise answer.”  

TimesLIVE