Eastern Cape Health Department cancels air ambulance tender over bidder non-compliance

21 Nov 2022

A second attempt to establish an air ambulance service for the Eastern Cape has crashed and burned after the tender was cancelled. The Health Department said the companies that bid for the tender did not comply with specifications.

A second attempt to get an air ambulance service for the Eastern Cape has failed after 11 months, with the Health Department cancelling the tender as none of the companies compiled with the bid specs.

This means it is likely that ambulance crews in the Eastern Cape, a vast rural province, will once again be without medical air support for the festive season.

Last year, from the start of December 2021 to mid-January 2022, at least 210 people died in traffic accidents in the province.

In February, Health MEC Nomakhosazana Meth, speaking in the Eastern Cape legislature, denied that the fatalities could be blamed on the lack of air ambulances, saying that the province’s emergency services were still able to respond by road.

Meth’s spokesperson, Mkhululi Ndamase, said the tender was cancelled as the two bids received from the market “did not meet all the mandatory requirements”.

It is understood that this finding from the bid committee will be disputed.

“The department (due to the technical issues) thought it necessary to seek independent legal opinion and also engaged the Treasury, [which] was also of the same opinion,” Ndamase said.

“A legal opinion was received and considered by the bid evaluation committee on the recommendation to cancel and re-advertise … Waiving the bid requirements would have put the department in a compromised position,” he added.

Ndamase said a new call on bidders is expected to be advertised before the end of November, and close after 21 days.

“In the interim, the province is making use of private medical aviation service providers to transport patients on medical emergencies to neighbouring provinces,” Ndamase added. This is not a service that attends to trauma cases and accidents, though.

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Previously, the contract was awarded to Leli Investments, a newcomer to the industry that had partnered with an established company, but industry insiders said the prices they had offered were so low that it would have been impossible to render the service. Their partner then withdrew.

Meth explained to the legislature earlier this year that the joint venture between Leli Investments and Black Eagle was terminated in August 2021, but that Leli Investments indicated it would provide air ambulance services to the health department. Meth said the department had indicated that Leli could continue to do so.

From August 2021, when they were appointed, to 31 December 2021, Leli Investments were not able to put helicopters in the air.

“There was an undertaking by Leli Investments that the service would commence on 1 November 2021, but nothing happened,” Meth said in her report.

She said a legal demand was sent to Leli to remedy this breach of contract.

Despite not being able to provide any air ambulances to the department, Leli Investments indicated that it would oppose the cancellation of the contract. Eventually, the department cancelled the contract on 31 December 2021.

In February 2022, in her report to the legislature, Meth stressed that the province needed an air ambulance service and said one would be up and running by June.

But on Friday last week, Eastern Cape Health Department spokesperson MK Ndamase said neither of the two bids “received from the market” met all the mandatory requirements.

The department has informed the two bidders of their reasons for the cancellation. DM/MC

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