NewsPREMIUM

Ramaphosa poised to dismiss Zweli Mkhize over multimillion-rand tenders scandal

President to receive report on Wednesday from SIU on irregular Digital Vibes contract

Former health minister Zweli Mkhize.  File photo: WERNER HILLS
Former health minister Zweli Mkhize. File photo: WERNER HILLS

In a decision aimed at sending a signal against corruption, President Cyril Ramaphosa has decided to permanently remove health minister Zweli Mkhize, who has been engulfed in a scandal involving a multimillion-rand contract irregularly awarded to associates of his.

Business Day has been told that Ramaphosa, who asked Mkhize to take a leave of absence earlier in June, “consulted widely” and decided on an “informed decision to remove” Mkhize, a move he thought would set “an example” and strengthen the credibility of his reform agenda.

Ramaphosa, who has the sole prerogative to appoint and dismiss the national executive, told several people that removing Mkhize was in line with the fight against corruption.

Speaking at the Zondo commission into state capture in April, Ramaphosa said perceptions that the party was corrupt were costing it electoral support and he was determined to ensure it was reformed and cleansed.

The scandal that engulfed Mkhize came at a sensitive time for Ramaphosa, when he was in the midst of a battle with his nemesis, Ace Magashule.

The ANC secretary-general defied a party order to step aside from office while facing criminal charges. Ramaphosa won support from the rest of the leadership to suspend Magashule, who is challenging the party in court.

Irregular

On Wednesday, Ramaphosa is due to receive the Special Investigating Unit’s (SIU) final report into a R150m communications contract that was awarded to Digital Vibes for work related to National Health Insurance before being extended to projects on Covid-19.

Digital Vibes is headed by Mkhize’s former personal assistant, Tahera Mather, and former secretary Naadhira Mitha.

Concerns about the contract were first flagged by the auditor-general in December, prompting the health department to commission an investigation by tax, assurance and advisory firm Ngubane & Co, which found the contract was irregularly awarded in contravention of the Public Finance Management Act.

Ramaphosa is on record as saying that he will make a decision on Mkhize’s fate once the SIU hands in its findings.

Mkhize does not expect a favourable outcome and is already planning a legal challenge of the SIU’s conclusions. It is unclear if this will postpone the decision on Mkhize, but Ramaphosa has already widely consulted on a replacement.

Acting health minister Mmamoloko Kubayi was not in the running, a person close to the process said.

“She has done a good job but the president knows the country needs a proper health minister,” the person said.

Ramaphosa has previously said it is his preference that a doctor be responsible for health and is “still insistent” on this, though he may change his mind.

Business Day understands home affairs minister Aaron Motsoaledi and co-operative governance minister Nkosazana Dlamini-Zuma — who are both medical doctors and previously held the post — were deliberately overlooked when Ramaphosa was looking for a person to take over on a temporary basis because he wanted to use the current situation to reshuffle his entire cabinet and introduce new blood.

Limpopo health MEC Phophi Ramathuba, who has overseen a relatively impressive vaccination programme, is seen as the front-runner.

Former deputy health minister Gwen Ramokgopa and parliament’s health portfolio chair, Sibongiseni Dhlomo, are also being considered.

omarjeeh@businesslive.co.za

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