PwC launches forensic investigation into IDT’s troubling R836-million oxygen plants project

Auditing firm PwC has been appointed by the Department of Public Works to conduct a forensic investigation into the Independent Development Trust’s (IDT) contentious R836-million oxygen plants project.

The IDT, a government entity that reports to the Department of Public Works, acted as an implementing agent for the National Department of Health when it appointed contractors to install Pressure Swing Adsorption oxygen plants at 55 public hospitals across South Africa.

In October last year Daily Maverick revealed that R428-million of the spend was set to go to Bulkeng Pty Ltd, an obscure company that did not possess the required accreditation to deal in medical equipment. 

Subsequent reports detailed further red flags regarding the tender process. The contracts were ultimately signed off by IDT CEO Tebogo Malaka and Dr Sandile Buthelezi, the Department of Health’s director-general, despite concerns over massive cost escalations and the main contractor’s credentials.

Bulkeng’s sole director, Nathi Ndlovu, was found dead in a park in Modderfontein, Johannesburg, mere days after Daily Maverick’s report raised concerns over IDT’s oxygen plants endeavour. It is understood that the police are treating Ndlovu’s death as a suicide. 

In December last year the Department of Health informed IDT that it wanted to withdraw from the project. 

“The independent investigation, which needs to be completed within eight weeks, will, among other tasks, determine whether any irregularities occurred during the process to award the tender and whether any officials need to be held accountable,” read a statement issued by James de Villiers, spokesperson for public works minister Dean Macpherson. 

According to the ministry, the auditing firm has been tasked to determine the full history surrounding the appointment of Bulkeng and other service providers, and whether due processes were followed.

The PwC probe also has to “identify the extent of any irregular or illegal activity and the involvement of IDT officials and/or external service providers in relation to the scope of work.”

Should the auditing firm identify any breaches or malfeasance, it is to “recommend appropriate courses of action against IDT officials and external service providers”.

 It is understood that the Hawks have also been probing the oxygen plants contacts. It is not clear when they are due to wrap up their investigation. DM