A R150m contract the health department awarded to an obscure communications company run by health minister Zweli Mkhize’s former staff members was irregularly awarded and contravened the Public Finance Management Act, an investigation has found.
The health department awarded the contract to Digital Vibes in 2019 for work on National Health Insurance and then extended it to include work on the coronavirus pandemic in 2020. Key players in Digital Vibes were Mkhize’s former personal assistant, Tahera Mather, and his former secretary, Naadhira Mitha.
An investigation into the contract by the Special Investigating Unit (SIU), launched in February, is still under way.
The department appointed tax, assurance and advisory firm Ngubane in January to investigate the contract after concerns were raised about it by the auditor-general in December 2020. Its forensic investigation report was submitted to the minister on Monday and to the SIU and President Cyril Ramaphosa on Tuesday.
The scandal engulfing Mkhize, who became one of the cabinet’s most high-profile ministers and won national admiration as he led the country’s response to the Covid-19 outbreak, has emerged as a major threat to his reputation and any ambitions he might hold for senior office in the ANC when the party holds its elective conference in 2022.
It also poses a headache for Ramaphosa, who has staked his reputation on cleaning up the ANC after corruption scandals in recent years. The president is in the midst of a struggle to force out ANC secretary-general Ace Magashule, in line with a party resolution that those facing criminal charges step aside.
The DA has called for Mkhize to step down pending the investigation.
Mkhize provided a high-level summary of the forensic investigation report on Wednesday, saying he had been legally advised not to disclose the full details for fear of jeopardising the remedial action being taken.
The investigation found irregularities in the tender bid process, ranging from inconsistencies in the bid committees to a lack of disclosure of conflict of interest. The investigators found R37m awarded to Digital Vibes constituted fruitless and wasteful expenditure, and R35m was awarded to the company for work on Covid-19 before its contract was expanded.
The remedial action under way included disciplinary action against implicated staff and an investigation into possible fraud and corruption, he said.
The minister said he was not involved in the awarding of the contract to Digital Vibes and had not influenced the appointment of employees or consultants to the company. He denied Mather and Mitha were close associates, saying they were “comrades” rather than his personal friends.
Core communication functions had not been outsourced to Digital Vibes, he said, referring to a recent Daily Maverick report disclosing invoices allegedly submitted by the firm to the health department for scheduling media interviews and public engagements.
“There were no speeches which were ever prepared by a service provider and all core content was developed by the department of health officials,” he said.
Mkhize said he fully supports the SIU investigation and there is no need for him to step aside while it conducts its work.
The DA’s health spokesperson, Siviwe Gwarube, said the minister should step down pending the outcome of a full investigation by the SIU.
“The minister cannot be both the player and referee in an investigation that involves him directly. He must simply step down,” she said in a statement.
SA needs a health minister who is beyond reproach, she said. “It is clear that minister Mkhize is no such leader and should be removed while this matter is dealt with without due influence.” With Hajra Omarjee
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