Macpherson calls for lifestyle audits into IDT bosses amid probe into R800m tender.

By Lehlohonolo Lehana.

The Minister of Public Works & Infrastructure, Dean Macpherson has provided an update on the ongoing independent investigation into the R800 million Oxygen tender at the Independent Development Trust (IDT).

Macpherson announced in 2024 an investigation would be conducted by financial services company PricewaterhouseCoopers (PwC) into the awarding of contracts to three companies for pressure swing adsorption (PSA) oxygen plants.

During the media briefing, the Minister said the investigation led by PwC was at 25% complete despite having started in January. 

The IDT, is a public entity which reports directly to the department of public works. It delivers social infrastructure such as schools, police stations and clinics.

Macpherson said he expected the final report to be made available to him by May.

“I do believe that the final report will be available to me by the end of May, and I will make it available to the President, public, and Cabinet,” he said.

He emphasised that the investigation would reveal any malfeasance despite facing a “coordinated fightback campaign.”  

The PwC probe also has to “identify the extent of any irregular or illegal activity and the involvement of IDT officials and/or external service providers in relation to the scope of work.”

Should the auditing firm identify any breaches or malfeasance, it is to “recommend appropriate courses of action against IDT officials and external service providers”.

Among the allegations is a claim that a ghost company had been awarded a R428 million share of the oxygen plant tender possibly with fraudulent documentation.

Bulkeng a “ghost company” with no online presence, no offices and a very elusive director, secured the largest portion of the oxygen plants roll-out. 

Bulkeng is not registered with Sahpra and seemingly used the certificate of another company without its knowledge.  

The IDT has claimed that Bulkeng was in a joint venture partnership with an entity named “Brutas Atlas Copco Industrials South Africa”. This entity supposedly held the Sahpra certificate Bulkeng would have needed for its bid. 

Macpherson said that while the probe is still ongoing, senior politicians would be exposed.

“And I have no doubt as the PwC investigation continues and the results are publicly released it will be senior politicians and officials who are exposed. Let me be clear, I will not be deterred by smear campaigns and political pressure.”

It is understood that the Hawks have also been probing the oxygen plants contacts. It is not clear when they are due to wrap up their investigation.

Hawks spokesperson, Colonel Katlego Mogale, has confirmed that the matter is under investigation but added, “The team is not revealing too much information so as not to jeopardise the case.”

In addition to the ongoing PwC investigation, the minister wants broad-ranging lifestyle audits to be conducted on the IDT’s top management, including the entity’s CEO, Tebogo Malaka.

“Today, I would also like to announce that I will be recommending that the [IDT] board authorise lifestyle audits across the senior personnel of the IDT,” stated Macpherson.

The IDT board has only recently again become quorate after it had been functioning for a number of months without the requisite number of board members. 

Macpherson earlier this year reappointed several former board members who had left the IDT board during the tenure of former minister Sihle Zikalala, now Macpherson’s deputy at the DPWI. This includes Zimbini Hill, the IDT’s former board chairperson and Professor Raymond Nnaemeka Nkado, former dean of the faculty of engineering at Wits University. 

It is understood that the newly constituted board will consider Macpherson’s recommendation for lifestyle audits when it meets this week. 

He also stressed that the GNU is of critical importance to South Africa in light of the crossroads the country finds itself in globally, geopolitically and economically.

Both ANC and DA are making a last-ditch attempt to save the shaky coalition following an urgent request from South African business leaders to prevent its collapse.

Fullview understands the discussions are mired by bruised egos and bitterness, with both parties feeling betrayed by the other.

The GNU is hanging by a thread after the DA voted against the ANC-led budget this past week, which included a one percentage point VAT hike and no adjustments to tax brackets for 2025.

The budget passed with a narrow majority in the National Assembly, with the ANC finding support from Action SA and BOSA, non-GNU parties started by ex-DA members.

The ANC views the DA’s vote against the budget as a betrayal and crossing a line, with president Cyril Ramaphosa saying the action has defined the party outside the GNU.

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