By Lehlohonolo Lehana.
The Independent Development Trust (IDT) confirmed the resignation of its CEO Tebogo Malaka on Wednesday, stating that it would take effect from 31 January, with no exit compensation.
The IDT said in a statement, the terms of Malaka departure remain confidential.
“The board has now initiated a formal process to appoint a permanent CEO, as the entity works to restore public trust and strengthen governance.”
Malaka was placed on precautionary suspension in August 2025.
Her suspension followed the finalisation of a forensic investigation into the botched R836-million PSA oxygen plant project. While no formal finding of misconduct has been made against Malaka, her suspension is aimed at ensuring an “independent and unhindered” continuation of the investigation.
The PwC forensics report, commissioned in January 2025 and released by Public Works and Infrastructure Minister Dean Macpherson on 29 July 2025, called for disciplinary action against Malaka for failing to prevent or act on violations that may have cost the state hundreds of millions of rands.
The IDT, acting as an implementing agent for the Department of Health, was tasked with rolling out pressure swing adsorption (PSA) oxygen plants to 55 public hospitals.
According to Macpherson, the report “lays bare the depth of the procedural failings and regulatory breaches uncovered during the investigation”. It found that a shell company, Bulkeng (Pty) Ltd, with no premises, staff or track record, was awarded a R428-million contract for the project.
The company submitted forged documents, falsely claimed a joint venture with a fictitious entity, and was not accredited by the South African Health Products Regulatory Authority (Sahpra).
In addition to these red flags, the PwC report found that key procurement safeguards were ignored, including the acceptance of Bulkeng’s bid documents after deadlines had passed and the appointment of Department of Health officials, who were supposed to be observers, as voting members of the bid evaluation committee.
The cost of the project, originally capped at R216-million by the Global Fund, ballooned to more than R836-million. Not a single oxygen plant had been commissioned by December 2024.
The PwC report recommended disciplinary action against Malaka for a number of failures: signing off on irregular procurement procedures, failing to ensure compliance with Sahpra regulations and allowing the Department of Health undue influence over IDT tender committees.
She is also faulted, in the report, for not acting on concerns raised by her own supply chain management team and by Department of Health infrastructure officials.
The scandal deepened after video surfaced showing Malaka and an IDT spokesperson offering R60,000 in cash to journalist Pieter-Louis Myburgh in an attempt to stop reporting on the matter.
Sifiso Nsibande will continue to act as IDT CEO.
In its 2023/24 annual performance report, presented to the National Council of Provinces in May, the IDT disclosed a R600-million debt burden, largely due to non-payment by client.