Public works minister Dean Macpherson has described reactions to the investigations of the Independent Development Trust’s (IDT’s) handling of a R836m tender for an oxygen plant as political pushback, and revealed it has given rise to “threats” against his safety.
The department announced in 2024 an investigation would be conducted by financial services company PwC into the award of contracts to three companies for pressure swing adsorption (PSA) oxygen plants.
The tender was for the installation of oxygen infrastructure at 55 public health facilities and was conducted by the IDT on behalf of the department of health. It was alleged two of the winning companies had fallen short of tender requirements.
Macpherson, briefing the media on Sunday, said in the past four months he had been personally attacked for giving the greenlight for the probe and accused the IDT’s board of refusing to work with him when he requested full account of the tender.
“In its responses, the board indicated that the procurement processes were regular and in compliance with prescripts,” he said.
“A pattern was becoming evident that suggests to me a calculated refusal to co-operate, or at least a serious disregard for oversight, and an alarming lack of transparency from the leadership of an institution meant to be building public trust and which directly reports to my department.”
In November 2024, Daily Maverick published an article about a ghost company allegedly being awarded a R428m share of the PSA oxygen plant tender.
Macpherson said he briefed President Cyril Ramaphosa about the allegations because he was concerned about implications it had for projects funded by donors. The project was funded by the Geneva-based Global Fund, which has initiated its own investigation into the tender.
Health minister Aaron Motsoaledi withdrew the oxygen plant contract from the IDT raising concerns that the R18bn the department gets from the Global Fund for projects would be put at risk.
Macpherson said his move to appoint PwC to investigate the tender faced challenges. “The board continued to question how and why the department was investigating the matter through PWC,” he said.
“At a meeting between PwC investigators and the board of the IDT, various officials, management and many of the trustees who were appointed prior to my tenure made unjustified demands as prerequisites to co-operating with the investigation.
“They stated the view that the department had no legal right to arrange for the investigation by PwC,” he said, adding that the pushback sought to paint him as a “racist”.
The EFF in January accused Macpherson of interfering in the affairs of the IDT, saying that “his actions not only undermine the integrity of this vital entity but also expose the DA’s true intentions to use state institutions to serve the interests of white minority capital”.
Meanwhile, ActionSA wanted Ramaphosa to suspend Macpherson, accusing him of orchestrating a smear campaign against IDT CEO Tebogo Malaka.
Macpherson rejected the allegations, saying: “One must ask oneself, why was it necessary to go to these lengths to block the investigation, which was under way, and who stood to benefit?
“Is money being dispensed to opinion makers and political parties to partake in this attack? I have no doubt that as the PwC investigation continues, and the results are publicly released, it will be senior politicians who will be exposed.”
The minister said the investigations by PwC will be concluded by May.
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