Cape Times

Ramaphosa to receive SIU probe report on Digital Vibes

- BALDWIN NDABA baldwin.ndaba@inl.co.za

PRESIDENT Cyril Ramaphosa is expected to be briefed soon on the Special Investigat­ive Unit (SIU) probe into the awarding of the controvers­ial communicat­ions tender to Digital Vibes by the National Health Department.

This was revealed by the SIU yesterday after confirming that its investigat­ors were working hard to complete the investigat­ion into the awarding of the R150millio­n tender to Digital Vibes, which is owned by Health Minister Zweli Mkhize’s close allies.

Yesterday, SIU spokespers­on Kaizer Kganyago reiterated that the matter was still under investigat­ion but said “we are fasttracki­ng the investigat­ion”.

“We promised to complete our investigat­ion by the end of this month but we have to brief the president first, especially about the Digital Vibes probe.

“We will have to brief him if there are any referrals for disciplina­ry action to be taken. If our investigat­ion finds any wrongdoing in the award of the tender, we will then approach the Tribunal Court for the cancellati­on of the contract and the recovery of the money.

“If there is any criminalit­y, we will then refer the matter to the Hawks and National Prosecutin­g Authority (NPA) for prosecutio­n,” Kganyago said.

Digital Vibes was awarded a R150m contract for communicat­ions work. The deal had initially focused on the National Health Insurance but was expanded last year to include Covid-19 communicat­ions work. The company is owned by Mkhize’s former private assistant, Tahera Mathera, and his former spokespers­on, Naardhira Mitha.

Recent revelation­s in the media detailed how Digital Vibes paid for maintenanc­e work at the Mkhize’s “family property” north of Joburg and the alleged transfer of money into the company account of Mkhize’s son, Dedani. It was also revealed that Digital Vibes in May 2020 transferre­d R160000 to a Pietermari­tzburg car dealership for a 2003 Toyota Land Cruiser.

According to the reports, the car was subsequent­ly registered in Dedani Mkhize’s name. It was also apparently used at a farm outside Pietermari­tzburg which is owned by him.

All this prompted DA health spokespers­on Siviwe Gwarube last week to open a criminal case against Mkhize and the health department’s director-general, Dr Sandile Buthelezi.

Yesterday, Gwarube said police confirmed that the case was being investigat­ed.

The DA alleged that Mkhize personally signed off on the submission that contained the contract and that was in direct contravent­ion of the Prevention and Combating of Corrupt Activities Act section 3 and specifical­ly sections 12 and 13, which relate to acts of service offered or accepted in exchange for government contracts.

Also, the Public Finance Management Act (PFMA) states that the signing off of any contracts is the function of the accounting officer and not the executive authority – as was allegedly the case with Mkhize.

“Therefore, the Health DG, Dr Buthelezi, must also be investigat­ed for his involvemen­t and possible contravent­ion of the PFMA with gross negligence,” Gwarube said.

All these revelation­s came as Mkhize is due to appear before the ANC integrity committee next week to answer to allegation­s made against him in the media.

Mkhize is also expected to explain the contradict­ory reply he gave to the DA’s former health spokespers­on, Lindy Wilson, when she asked about the awarding of the tender to Digital Vibes. Wilson raised concern that the auditor-general had flagged the tender but Mkhize said there was no irregulari­ty in it.

Mkhize said the appointmen­t happened on November 15, 2019, through a deviation process to provide communicat­ions services in relation to the NHI Bill. He said that a closed tender process was approved and supported by the National Treasury. On March 25 last year, the department extended the scope of work of Digital Vibes to include Covid-19 “in terms of emergency procuremen­t”.

Mkhize said the transactio­n in question was not irregular as there was a contract already in place.

He also said the Digital Vibes contract was supposed to come to an end on November 30 last year. However, it was extended on a month-to-month basis.

On May 27 last year, Mkhize changed his tune and said the appointmen­t of Digital Vibes was irregular, and that his department had grown concerned over the contract and initiated an internal investigat­ion in January, conducted by an external tax firm. A summary of its findings included that “the tender and the bidding process followed were a contravent­ion of the Public Finance Management Act”.

It also found that the process of appointing Digital Vibes was irregular because of inconsiste­ncies in the bidding committee and lack of disclosure over conflict of interest.

Newspapers in English

Newspapers from South Africa