The Independent Development Trust (IDT) board has written to the minister of Public Works and Infrastructure, Dean Macpherson seeking his audience over the alleged R800 million PSA Oxygen Plant tender.
In a letter dated December 10 sent through the board’s chairperson, Kwazikwenkosi Mshengu, the board says it is concerned about what appears to be a misunderstanding of the initiative to review the internal control processes and contract management systems on the back of the recent investigation launched by the minister over the R800 million tender.
“I acknowledge your letter dated 10 December 2024 under the heading “Response to IDT’s statement regarding the PSA Oxygen Plant Tender.” I have since shared the letter with the Board of Trustees because it contains certain directives to the Board.
The Board is concerned about what appears to be a mis-understanding of the initiative to review the internal controls and contract management systems against the investigation(s) into the awarding of the tender of the PSA Oxygen Plant.
Last week, Macpherson launched the investigation into the following the corruption allegations.
IOL reported that Macpherson spokesperson, James de Villiers, said the minister’s actions follow an announcement by the IDT that the Department of Health intends to cancel the PSA Oxygen Plants tender.
De Villiers indicated that the IDT has been an implementing agent for the tender following the same corruption allegations.
“The minister’s actions follow several attempts over the past weeks to obtain documentation from the IDT board regarding the PSA Oxygen Plant tender,” de Villiers initially said.
“The tender involved awarding contracts amounting to over R800 million to three companies to install oxygen plants in hospitals, despite two of the companies lacking South African Health Products Regulatory Authority (Sahpra) registration, and one potentially submitting fraudulent documentation,” he added.
The public statement by the Minister and the letter suggest that the Board of Trustees is commissioning an independent investigation into the PSA Oxygen Plant Tender.
Mshengu has revealed that the minister’s public statement records that “the Minister has dismissed the Independent Development Trusts (IDT) intention to investigate the processes followed in awarding the Pressure Swing Adsorption (PSA) Oxygen.
“Plants bids, as the board of trustees is currently not quorate and cannot investigate itself.”
“The statement continues to state that “my interactions with the IDT over the past two months have raised serious concerns about governance within the organization. I expressed these concerns in person to the IDT during a meeting regarding their quarterly performance, as well as their continued inability to finalize financial statements for the 2023/2024 financial year. It is patently clear that an organisation cannot and should not be allowed to investigate itself,” Mshengu added.
De Villiers added that when the allegations regarding the tender surfaced, Macpherson engaged with the Independent Development Trust (IDT) on multiple occasions, requesting supporting documentation for the PSA Oxygen Plant tenders to get to the bottom of this matter.
Macpherson has dismissed the IDT's intention to investigate the processes behind the awarding of the PSA Oxygen Plant bids, citing the board’s shortage of quorum and that it cannot investigate itself.
The IDT board currently comprises seven out of its 12 constituted members, with a quorum requiring eight eight members.
The Star