The Minister of Health, Dr Aaron Motsoaledi has welcomed the report of investigations into the Pressure Swing Adsorption (PSA) Oxygen Plant tender that was released by his Public Works and Infrastructure counterpart, Dean Macpherson during a media briefing on Tuesday in Pretoria.
Among others, the report found systemic procurement irregularities, governance failures and identified flaws in the bidding process of the tender.
Motsoaledi expressed relief that those found guilty will be held accountable.
‘’They did not just commit financial corruption but deprived South Africans of urgent life-support in the form of oxygen. As such the Department of Health would like to see people being held to account and the law taking its course. It must be noted that when this story of the possibility of corruption broke out in the public media, the Minister of Health in consultation with Minister of Public Works and Infrastructure immediately took a decision to remove the tender from the Independent Development Trust (IDT), and took it to the Development Bank of Southern Africa (DBSA) so that the project can continue and deliver the much-needed oxygen,” said Motsoaledi.
The IDT was awarded the contract on behalf of the Department of Health, to install oxygen plants at about 55 hospitals across the country.
The initial budget was estimated at R250 million but later increased to R836 million.
Motsoaledi said he is also consoled by the fact that the funds donated by the Global Fund are safe and that the department’s integrity remains intact. He said that maintaining a solid relationship with international partners like the Global Fund is crucial as the country strives towards enhancing its health care system.
“I am also satisfied that the report has not pointed any fingers at the Department of Health for any financial misdemeanour that may cast aspersions on the integrity of the Department. Because this would have soured our relationship with the Global Fund.”
The Department of Health has reiterated its dedication to ensuring transparency and efficiency in all projects intended for public benefit.

