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Global Fund Launches Inquiry into Suspected Tender Fraud in South Africa

Published November 14, 2024
3 months ago

In a sweeping response to a shocking exposé, the Global Fund, renowned for being a primary financier for global health initiatives, has dispatched a team of inspectors to South Africa to investigate claims of tender fraud involving an R800-million health contract. This contract, earmarked for the installation of oxygen plants in 55 hospitals nationwide, has been mired in controversy since a detailed report by Daily Maverick and amaBhungane pointed to fraudulent activities.





Health Minister Aaron Motsoaledi addressed concerns in the National Assembly and indicated the gravity of the situation—a sentiment echoed by President Cyril Ramaphosa’s immediate request for a comprehensive report. The scandal involves Bulkeng, a company that secured the majority of the stated contract, despite glaring discrepancies such as a lack of online presence, appropriate certification, and allegedly, falsified documents.


The exposé and subsequent parliamentary address unveiled the intricate web of procurement processes, where the Independent Development Trust (IDT), a governmental agency, was charged with overseeing the acquisition. However, the IDT now falls under intense scrutiny as the minister in charge, Dean Macpherson, spearheads the internal investigation.


Daily Maverick last month reported that the original contract value skyrocketed from R256-million to an alarming R836-million, with Bulkeng laying claim to nearly half of this amount. However, the controversial contractor is shrouded in mystery, with questions about the legitimacy of their Sahpra certification and even intrigue surrounding the sudden and unverified 'death' of its director, Nkosinathi Ndlovu.


This development has significant implications for the Global Fund's support in South Africa, which contributes around R10-billion every three years, particularly geared toward fighting diseases such as Aids, tuberculosis, and malaria. The current focus shifted towards oxygen plant installations due to the dire need experienced during the COVID-19 pandemic to make hospitals self-sufficient in oxygen supply.


With both the international community through the Global Fund and the South African government dedicated to getting to the bottom of these allegations, this investigation looks set to be a defining moment in the pursuit of transparency and accountability in public health procurement.


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