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Zweli Mkhize to give full account of R150m tender as pressure builds

Officials remain tight-lipped ahead of ANC integrity committee hearing

Former health and Cogta minister Zweli Mkhize. Picture: FREDDY MAVUNDA
Former health and Cogta minister Zweli Mkhize. Picture: FREDDY MAVUNDA

As pressure mounts on Zweli Mkhize over a R150m communications tender awarded to an obscure company run by his associates, those close to the embattled health minister remained tight-lipped on Monday amid growing speculation about his future.

Mkhize is due to give a full account within the next few days after the scandal came closer to him personally with a report in the Daily Maverick that the company, Digital Vibes, had bought a luxury car for his son.

At the weekend, Mkhize asked to appear before the ANC’s integrity committee. Made up of party veterans and often accused of lacking teeth, the structure nevertheless was influential in the party’s decision to implement its “step aside” rule and force through the suspension of secretary-general Ace Magashule.

A report from the committee, either for or against Mkhize, will form the basis of the ANC’s response to the scandal.

The scandal that engulfed Mkhize has been raging for weeks and is a distraction for the government when it is supposed to be managing the Covid-19 pandemic, extending its vaccine programme and seeking to limit a potentially devastating third wave of infections, hospitalisations and deaths during the winter months.

It has also presented an uncomfortable dilemma for President Cyril Ramaphosa as he seeks to convince the public that under his leadership, the ANC is in the process of renewal after years of corruption scandals.

Inflating prices

Digital Vibes was awarded a contract by the health department for work that initially focused on National Health Insurance, which was later expanded to include Covid-19 communications. The company is accused of inflating prices and doing work that the department could do, such as arranging media appearances for Mkhize.

A report by an advisory firm found that the contract was irregularly awarded and contravened the Public Finance Management Act. The Special Investigating Unit (SIU) is looking into the allegations, which Ramaphosa has described as serious and disturbing.

On Sunday, the government issued a statement saying Mkhize, who has denied involvement in the issuing of the contract or being friends with the owners of Digital Vibes, was not interfering with the SIU investigation.

Health department director-general Sandile Buthelezi also denied that the department had suspended officials over the matter and declined to name any implicated individuals. “At this stage, the department does not wish to compromise any of the processes that are under way and those that may be implemented in future by divulging the identity of implicated individuals,” Buthelezi said.

The SIU has only said that a report on its investigation is expected by the end of June.

“We promised to complete our investigation by the end of this month but we have to brief the president first, especially about the Digital Vibes probe.

“We will have to brief him if there [is] any referral for disciplinary action to be taken,” SIU spokesperson Kaizer Kganyago told Business Day.

If there was wrongdoing in the awarding of the tender, then the unit would take steps to recover funds and any suspected criminality would be referred to the Hawks and the National Prosecuting Authority, Kganyago said.

Ramaphosa has so far adopted a wait-and-see approach, saying that any action will depend on the outcome of the SIU investigation.

Wait and see

The scandal has diminished Mkhize, whose profile surged in the wake of the Covid-19 outbreak, with some analysts saying he may be a future presidential candidate.

He hails from KwaZulu-Natal, the ANC’s biggest region, and recently served as the province’s premier. Mkhize’s refusal to defend state capture under former president Jacob Zuma saw him break away to unsuccessfully contest the ANC presidency in 2017.

omarjeeh@businesslive.co.za

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