Ramaphosa to receive SIU probe report on Digital Vibes
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.