Pretoria – Health Minister Dr. Aaron Mossoaredi welcomed the release of the report, enacted by Minister of Public Works and Infrastructure, Minister Dean McPherson.
The report, released by Minister MacPherson on Tuesday, July 29, 2025, reveals the monumental failures in governance, compliance with IDT policies and compliance with national treasury regulations.
“The report therefore confirms that several companies that awarded work under the PSA project do not have a valid SAHPRA (South African Health Products Regulatory Authority) license,” Minister MacPherson said.
“Without Atlas Copco's knowledge or consent, one company, Bulkeng (Pty) Ltd, has submitted a SAHPRA license belonging to Atlas Copco Industrial SA.
“This was a clear misrepresentation. It was a scam.”
Additionally, Bulkeng intended to subcontract more than 25% of its liability for Brutes Air Solutions, but did not disclose this in violation of priority procurement regulations.
Furthermore, investigators found a deep flaw in the bid evaluation process.
“The SAHPRA compliance requirements originally set out in the Project Enforcement Plan and the Ministry of Health Memorandum have been intentionally removed from the final request for the proposal,” the Minister said.
“This opened the door for unqualified bidders to participate and win large contracts.”
Commenting on the report, Minister Motsoaledi said, “In the end, he expressed his satisfaction in finally removing the cloud hanging over a bid that ensures that 55 hospitals in the country have the infrastructure to provide much needed oxygen to selected facilities.
Minister Motsoaledi said those who are found to be on the wrong side of the law will be considered.
“Not only did they commit financial corruption, they also took South Africans out of emergency life support in the form of oxygen,” Minister Mottsoaredy said.
“So the Ministry of Health wants to see people get restrained to explain and see the law take that course.”
Minister Motsoaledi said, “We are pleased that the Ministry of Health has lost nothing and that all the money donated by the Global Fund is safe.”
Minister Motsoaledi added:
“I am also pleased that the report does not point to a financial misdemeanor that could cast a tribute to the Ministry of Health's sincerity, as it worsened its relationship with the Global Fund.”
The bid was intended to deliver life-saving pressure swing adsorbed oxygen plants to hospitals across the country.
This was a project worth R836 million, of which R528 million was allocated directly to IDT for implementation.
However, when some of the projects inexplicably increased from R216 006 750 to R592 564 687, a red flag appeared when the market was tested. This increases by 174% from the initial estimated budget.
When reports of possible corruption occurred in public media, the Health Minister consulted with his public works counterparts to remove the bid from the IDT and bring it to the Development Bank of South Africa (DBSA) to allow the project to continue providing the necessary oxygen.
He said that the release of the report would ensure that the rest of the work of DBSA would be to conclude the project as quickly as possible for the benefit of the people of South Africa.
Meanwhile, the IDT Board said it had focused on serious findings highlighted by Minister MacPherson, including evidence of procurement irregularities, governance obstacles and regulations violations related to the PSA oxygen plant project.
“We reflect the Minister's commitment to governance, institutional accountability, and the protection of public and donor funds.
“The board has not yet concluded any internal deliberations.
“We are carefully processing the content of the report in line with the fiduciary responsibility and will be formally convened to consider the appropriate next step.
“We are committed to ensuring a legal, fair and transparent response led by both report recommendations and internal policy requirements.”
The board has assured all stakeholders that they will take these issues seriously.
The board said it was determined to restore the system's credibility, rebuild trust in the IDT procurement and governance system, and to maintain the trust that South Africans have placed in us.
The IDT Board members are:
Zinbini Hill (Chair), Professor Raymond Nkado (Vice Chairman), Lelato Kumaro, Tobill Maloka, Denada Yalen Connar, Neil Jansen, Derek Naidu, Mr. Derek Naidu, Mr. Bvuma, Wayne Manthe Mr. Tebogo Malaka (Chief Executive Officer)
