Wheels off health scooter deal
Bhisho and suppliers say there was no need to interdict as project had already been halted
The Special Investigative Unit (SIU) on Friday interdicted the Eastern Cape health department from forging ahead with the controversial multimillion-rand scooters project.
The contract drew widespread criticism when it was announced by health MEC Sindiswa Gomba and health minister Dr Zweli Mkhize in East London in June.
The scooters with side carts were initially punted as the ideal solution to the province’s bad roads, especially in rural areas, with both Gomba and Mkhize saying the scooters would reach where ambulances could not.
However, after a huge public uproar, the department made a U-turn, saying the scooters would not be used to transport patients but would be used to transport medication and for awareness campaigns.
The SIU also interdicted the provincial department from paying Fabkomp (Pty) Ltd R10m for supplying it with the scooters, at least until their investigations into the matter were wrapped up.
The virtual special tribunal court on Friday granted the urgent interdict restraining the troubled department from implementing the tender and making payments to the King William’s Town-based company.
The hearing lasted about 20 minutes as the interdict application was not opposed by Gomba, outgoing superintendent-general Dr Thobile Mbengashe, CFO Msulwa Daca and fourth respondent Fabkomp.
Through its legal counsel, Monare Makoti, the SIU brought an urgent application to the special tribunal contending that the department’s procurement of the scooters from Fabkomp was done in contravention of the provisions of Section 217 of the Constitution, Public Finance Management Act and Treasury regulations. Makoti told judge Lebohang Modiba that should the department continue with the roll-out of the project and ultimately make the R10m payment, “the state would suffer irreparable financial harm and that would further prejudice the ongoing investigations into allegations of transgressions with procurement policies and regulations”.
It is alleged that the department purportedly expedited the contract for the procurement of 100 mobile clinic scooters from Fabkomp in light of the outbreak of Covid-19 pandemic, with the SIU alleging the contract was “marred by irregularities and irrationality” and that it was awarded “in an unusual and unexplained haste”.
The SIU further contended that the department, upon hearing of the SIU investigations, resolved the scooters be modified and continued with the tender with Fabkomp.
It said such modification “constitutes a fresh contract and shows that the awarding of the contract was not meant to meet the specific needs of the department”.
After hearing Makoti’s submissions, Modiba granted the urgent interdict.
“Pending the finalisation of the review application, the first to the fourth respondents are interdicted and restrained from taking any further steps towards the implementation of the tender,” ordered Modiba.
Even though the matter was not opposed by the department and Fabkomp on Friday, Gomba and her chief of staff Andile Sidinile joined the virtual sitting, albeit for a short period. Health spokesperson Sizwe Kupelo and Fabkomp director Brian Harmse said there was no need for the SIU to interdict the project as it had been halted when they became aware of the SIU probe.
Kupelo said: “The company did not even have an order number and contrary to a narrative out there, we had no intentions to pay as we had voluntarily decided to halt everything and wait until the SIU probe was completed.”
He said they were not even aware of the tribunal sitting as they were never informed, but heard about it through media reports.
Harmse said so far he had not supplied a single unit to the department and that not a cent had been paid to his company.
He confirmed they had opted to halt everything “until everyone is on board and satisfied”.
He, however, charged that the SIU had misrepresented some facts in the papers they filed at the tribunal court and that “they will be, too, embarrassed when the whole truth eventually unfolds”.