South Africa Health Minister in Eye of Covid-19 Tender Storm

04 JUN, 2021 - 00:06 

JOHANNESBURG – Another possible coronavirus-linked corruption scandal is embroiling South Africa’s government as there are serious allegations of wrongdoing against Health Minister Zweli Mkhize.

Last week, media reports said his ex-spokesperson and former personal assistant, reportedly received millions of rand in irregular payments. which is linked to a communication contract around Covid-19.

Mkhize has admitted money from his department reached a company called Digital Vibes – a company run by his former campaign media manager was “irregularly awarded”.

Among the suspected irregularities is a R150 million payment to the company for setting up an interview between the minister and the national broadcaster, for the announcement of the second wave.

But Mkhize has denied any personal links and said he did not benefit from the contract.

The scandal comes as President Cyril Ramaphosa has promised a crackdown on corruption as the ANC faces pressure following the reign of former president Jacob Zuma, who was forced to resign in 2018 over graft scandals.

He has also said that those involved in Covid-19 wrongdoing will be dealt with “harshly and appropriately”.

Investigators are reviewing more than 4,000 contracts for services and supplies related to the fight against the coronavirus. About 40 percent of suspicious contracts have been reviewed, said the head of the Special Investigations Unit (SIU), Andy Mothibi.

“We continue to receive new allegations of mismanagement and irregularities,” he added.

Its unit, under the supervision of the Ministry of Justice, has been interested since last year in dozens of companies, some linked to political networks, which have been awarded lucrative contracts as part of the government’s fight against the pandemic.

The SIU had already revealed in February that nearly R230 million had been siphoned off last year by corruption, fraud and inflated prices for protective equipment provided to public hospitals. 

Digital Vibes, the controversial communications firm that bagged an allegedly corrupt R150 million contract from the Department of Health (DoH), bought a second-hand vehicle for Dedani Mkhize, Mkhize’s son. 

Documents reveal that Digital Vibes in May 2020 transferred R160 000 to a Pietermaritzburg car dealership for a 2003 Toyota Land Cruiser.

The car was subsequently registered in Dedani Mkhize’s name.

According to photographs posted on social media, the vehicle has been put to use at a farm near Pietermaritzburg owned by the minister’s son. 

At the time of the transaction, the DoH had transferred roughly R50 million to Digital Vibes for contentious services related to the department’s National Health Insurance (NHI) and Covid-19 communications efforts. 

Besides two relatively minor payments from the Municipal Infrastructure Support Agent, an entity of the Department of Cooperative Governance and Traditional Affairs (Cogta), Digital Vibes’ sole source of income during the period in which it bought the vehicle was the millions it received from the DoH.

Digital Vibes ultimately bagged R150 million from the department from January 2020 to early 2021.

The latest revelations come on the back of a recent report that detailed how Digital Vibes had transferred R300,000 to one of Dedani Mkhize’s companies and had paid for maintenance work at a “family property” owned by the minister’s ZLM trust. 

Meanwhile, the opposition DA said on Wednesday it would lay criminal charges against Mkhize.

This after revelations that his family may have benefited from proceeds of a R150m tender his department awarded to communications company Digital Vibes.

The company employed the minister’s former spokesperson and alleged family friend, Tahera Mather, and his former assistant, Naadhira Mitha. 

“The DA will be laying criminal charges against Minister Mkhize and health director-general Dr Sandile Buthelezi with the SA Police Service (SAPS). Over and above the SIU probe, a criminal investigation needs to ensue,” said the DA.

Questions are being raised about Mkhize’s signature on contracts, which was flagged as irregular after an independent probe conducted by financial auditors and tax consultants Ngubane & Co.

Buthelezi said it is not unusual for the minister to sign off contracts after they have been approved by the director-general. However, public service & administration minister Senzo Mchunu and Treasury director-general Dondo Mogajane told the publication ministers do not sign off contracts related to procurement.

The DA said Mkhize and Buthelezi must be investigated and, if found guilty of contravening the law, be held to account. 

Last week, Mkhize denied benefiting from the contract and distanced himself from Mather and Mitha. 

The DA said the alleged conduct by the minister was “highly irregular” and constituted an abuse of power. 

– Wires.