Health Department in the spotlight as AG demands answers for tenders awarded irregularly

KZN health MEC Nomagugu Simelane-Zulu. Picture: Siphiwe Moyo/KZN Department of Health

KZN health MEC Nomagugu Simelane-Zulu. Picture: Siphiwe Moyo/KZN Department of Health

Published Jul 12, 2022

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Durban - The KwaZulu-Natal Department of Health which is once again on the radar of the AG (auditor-general) after tenders worth R17 million were issued after flouting the law.

For now, IOL is aware of two tenders the AG has asked the department to provide answers for, but a whistleblower claimed that this is just the tip of the iceberg as “the department is being looted with impunity.”

The tenders that had drawn the attention of the AG are that of the guarding of the provincial pharmacy supply and one tender which was awarded to an outdoor advertising company.

The AG requires this information before she formulates findings ahead of the next round of audit results for government departments at provincial and national levels and for state-owned companies.

During an audit, which is normally done in a form of sampling, the AG stumbled upon information about a R7.3 million tender which was awarded to Thobza security to secure the provincial pharmacy supply depot in Mobeni, south of Durban.

The depot is where all medication procured by the province for all its hospitals is stored before being distributed proportionally.

During the bidding process for this tender, three companies, Ditsiro Tsaka Trading and Projects, Billy and Sons Civil and Security and Thobza Security, were shortlisted.

In the end, Ditsiro Tsaka scored the highest points at 31.67 and it was followed by Billy and Sons with 31.12 points. Thobza security was last with 29.77 points.

Despite that, Thobza eventually won the tender, hence the AG is now demanding answers since procurement laws were clearly flouted in favour of it.

“Subsection (2) states that, if any state organ intends to apply objective criteria, in terms of section 2 (1)(f) of the act, the organ of the state must stipulate the objective criteria in the tender documents. Section 2(1)(f) state that the tender must be awarded to the tenderer who scores the highest points, unless objective criteria justify the award to another tenderer.

“During the audit of the bid processes for the award, it was noted that the supplier that did not score the highest points was awarded. In addition, there is no indication of the objective criteria being applied in passing over the high scoring supplier (Ditsiro),” the AG wrote to the department.

The spokesperson of the department, Ntokozo Maphisa, said they are still in touch with the office of the AG to provide answers.

“This matter was submitted as a normal Request for Information (RFI) that the auditor-general issues as part of the process of the annual regulatory audit. Engagements with the AG are currently on-going and the matter has not been finalised yet. The department will be able to comment once the AG process has been concluded,” Maphisa said in a written response given to IOL. Another departmental tender worth R10 million that has raised the ire of the AG is the one which was eventually won by MGSM Solutions for outdoor advertising.

A whistle-blower has labelled this tender “Digital Vibes number two in the making.” It appears that the bid committee shortlisted companies that are prohibited from doing business with the state after they were barred for some previous misconduct.

That paved the way for MGSM to score the tender.

Previously, the department had weathered storms like the tara clamp scandal which erupted when the device was procured for circumcisions in the province. It also survived the Intaka water purification plant scandal where the eventual winner of the tender allegedly made donations to the ANC in KwaZulu-Natal.

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