‘Heberon procurement was a big lesson’
DEFENCE Minister Thandi Modise said yesterday the irregular procurement of Heberon medicine from Cuba by the SANDF was a big lesson for the army.
“We must say it has been a big lesson,” Modise said.
“We learn. In every mistake, there is a lesson,” she told MPs.
Modise made the statement when she briefed the defence and military veterans portfolio committee on the findings of the ministerial task team (MTT) on the procurement of the Covid-19 drug.
The team was appointed by former minister Nosiviwe Mapisa-Nqakula after a whistle-blower spoke out about possible irregularities in the procurement and importation of the drug meant for the soldiers.
The late auditor-general, Kimi Makwetu had found irregularities in the procurement of the drugs, and the importation of 970 895 vials were found not to have authorisation from the SA Health Products Regulatory Authority (Sahpra).
The department had entered into an open-ended contract that was signed after the first delivery of the drug. Sahpra has had issues in accessing the storage facility where the drugs are kept and also obtaining documents to approve the drugs.
Modise said they went through the MTT findings and had discussions with the three-member team comprising Zolile Ngcakani, Billy Masetlha and Cassius Lubisi. Modise said the MTT found that while Covid-19 could be blamed for putting the SANDF in the situation, things should never be done outside the laws and processes of the country, especially financial processes within the department.
“We want to say even though we admire the defence for trying to do the right thing and secure troops, they went about it the wrong way.
“We also want to say the MMT made clear in their findings that were supported by other institutions.”
She noted, for instance, that laws on importation and imports were overlooked. “It said it found that the first consignment was brought through customs for some reason, but this consignment was brought through a subsidiary of Armscor AB Logistics (and) that the second and third were never cleared.
“Something that has not been cleared simply means that something has been smuggled in and we do take issue with that,” the minister said.
Modise noted that some names of officials appeared in the MTT report, including the role of the CFO, who stood firm against the procurement.
She told the MPs that the MTT had advised that the vials be returned to Cuba just as the AG and Sahpra had done. “I received a report which indicated to me all the vials that were in the storage facility had been taken and were delivered to Cuba,” she said.
Modise said they acknowledged the findings of the AG that R33 million was spent. “We found that even as it was paid, it was under false pretence because recordings were falsified. That is why we insist that action must be taken on this matter.”
Modise sang the praises of the civilian who stood firm with the CFO against the procurement. She told the MPs that the Chinese have offered a donation, but she wanted it cleared first before legally receiving it. “We don't want a repetition of another mess. We will continue to look out for the protection of the soldiers … We will do everything within the law (just as) South Africans expect us to do.”
Committee chairperson Cyril Xaba said they wanted a report from the chief of defence on the consequence management.