Minister Dean Macpherson requests answers from IDT on multi-million rand oxygen plant tender awarded to unlicensed companies

29 October 2024

Minister of Public Works and Infrastructure, Dean Macpherson, has written to the Chairperson of the Independent Development Trust (IDT), an entity under the Department of Public Works and Infrastructure, requesting a comprehensive report by the end of day on Friday explaining how three companies were awarded a multi-million rand oxygen plant tender despite two lacking South African Health Products Regulatory Authority (SAHPRA) registration.

The Minister's letter follows a report by Daily Maverick on Monday, which revealed that Bulkeng (Pty) Ltd and Maziya General Trading, in partnership with On Site Gas Systems International-who does hold a SAHPRA licence-were awarded tenders by the IDT to install complex technical pressure swing adsorption (PSA) oxygen plants at state hospitals across the country. The IDT is the implementing agent for the oxygen plant roll-out on behalf of the Department of Health.

"As the Minister of Public Works and Infrastructure, I take these allegations very seriously, as the IDT, like any state institution, must adhere to the constitutional imperative outlined in Section 217. Section 217 stipulates that when any organ of state contracts for goods or services, it must do so in a system that is fair, equitable, transparent, competitive, and cost-effective," Minister Macpherson said.

"The article published by Daily Maverick, however, raises several significant concerns about the process followed in the appointment of Bulkeng (Pty) Ltd, Maziya General Trading, and On Site Gas Systems International by the IDT. As the Minister 
responsible for the oversight of the IDT, I will must ensure that there is transparency and accountability."

Issued by James de Villiers, Spokesperson to the Minister, 29 October 2024