The Portfolio Committee on the Department of Public Works and Infrastructure (DPWI) has expressed significant concern regarding the lack of communication between Minister Dean Macpherson and the Independent Development Trust (IDT).
This issue has come to the forefront following a meeting on 27 November 2024, where the Minister addressed the committee regarding alleged irregularities in the tender process for the installation of PSA Oxygen Plants at 55 public hospitals across South Africa.
This week, The Star reported that the Independent Development Trust (IDT) board had written to the minister of Public Works and Infrastructure, Dean Macpherson seeking his audience over the alleged R800 million PSA Oxygen Plant tender.
It was further reported that the minister had already instituted an investigation meant to probe some of these concerns.
In a letter seen by The Star, parliamentary committee spokesperson, Jabulani Majozi revealed that contrary to popular belief, many of these reports critically lacked substantial evidence, leading to a muddied narrative and casting doubt over the IDT's integrity as an implementing agent under the Department of Health (DoH).
“As the executive authority of the Department of Public Works and Infrastructure, the Minister possesses formidable powers, including the authority to summon boards and trustees for comprehensive reporting,” Majozi said.
“Yet, alarmingly, since his appointment in July 2024, he has not met with the IDT. This absence of communication seems to be a crucial factor contributing to the perception of irregularities surrounding the IDT's operations in the tendering process’,’ Majozi added.
Majozi indicated that, in a bid to verify the facts surrounding the allegations, the committee Chairperson, Carol Phiri, engaged with the IDT last Thursday, December 12.
Majozi added that the discussions illuminated that the selection of service providers had been executed with the concurrence of the national DoH and funding confirmation from the Global Fund. The phased approach, which included a maintenance period, received approval from both entities, further solidified through a "No Objection Letter" from the Global Fund Country Team.
“Despite this evidence suggesting due diligence on the IDT's part, allegations have persisted, maligned the trustworthiness of the IDT, and ultimately harming the Department of Public Works and Infrastructure's reputation.
In contrast to the ongoing public fallout, Ms Phiri articulated the importance of allowing law enforcement, particularly the Hawks, to conduct their investigation without media speculation complicating the narrative,’ he added.
As such, Majozi indicates that, moreover, Ms Phiri’s concern extended to the fact that the IDT's Executive Authority has not engaged directly with the entity since the Minister’s appointment, a situation she labelled “deeply concerning”.
She remarked, "The ongoing media onslaught against the IDT could have been avoided had the Minister requested to meet with the IDT to provide him with clarity on the PSA Oxygen project.”
“The committee’s essential role is to hold the executive accountable and ensure proper leadership within the department. Consequently, it is appealing to Minister Macpherson to expedite a meeting with the IDT to address the apparent communication breakdown.”
According to the committee, further complicating matters, the IDT Board of Trustees has not achieved a quorum since the resignation of a member at the end of October 2024, raising concerns over governance. The committee urges the Minister to take prompt action in appointing additional members to restore the board's functionality.
“Despite these hurdles, the committee expressed optimism about the progress made by the IDT’s current leadership. The trust was on the brink of collapse with a project portfolio worth R2 billion and has remarkably scaled up to R9 billion as of the 2023/24 financial year. Such growth underscores the dedication and hard work of the IDT’s leadership, which has been striving to reinforce its position as a critical agency for social infrastructure delivery within South Africa's public works and infrastructure sector,” added Majozi.
However, the ministry in a statement last week dismissed the Independent Development Trust’s (IDT) intention to investigate the processes followed in awarding the Pressure Swing Adsorption (PSA) Oxygen Plant bids, as the board of trustees is currently not quorate and cannot investigate itself.
Spokesperson for the ministry James de Villiers said the board currently comprises seven out of its 12 constituted members, with a quorum set at eight members.
“This is an issue the Minister is currently seized with and will announce a way forward in due course. The Minister, as the Executive Authority to which the IDT is accountable to, will therefore launch a full independent investigation into the IDT and its corporate governance challenges to prevent any possible abuses and corruption going forward. During this meeting, the Minister revealed troubling allegations that have since gained traction in various media outlets.”
The Star
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