Minister Dean Macpherson remains undeterred by death threats as he investigates an R800 million oxygen tender scandal. He appointed PwC to conduct a forensic probe into the controversial contract that escalated from R256 million. Despite opposition from the EFF, who filed corruption charges against him, Macpherson told colleagues he “won’t be intimidated.” The canceled tender has raised serious concerns about financial mismanagement and potential fraud within the health sector.
Despite facing death threats amid a growing controversy, Public Works Minister Dean Macpherson remains steadfast in his probe of an R800 million oxygen tender scandal.
Minister Macpherson stands firm against threats while investigating massive oxygen tender irregularities
The minister initiated an independent investigation in December 2024 after the Independent Development Trust (IDT) failed to provide documentation about the tender process for Pressure Swing Adsorption (PSA) Oxygen Plants for hospitals.
The tender, funded by the Global Fund which allocates R18 billion annually to South Africa for health programs, came under scrutiny when it was revealed that three companies received contracts despite serious irregularities.
Two of these companies lacked mandatory registration with the South African Health Products Regulatory Authority (SAHPRA), while one allegedly submitted fraudulent documentation.
“I won’t be intimidated,” Macpherson reportedly told colleagues after receiving threats related to his investigation. The minister appointed PwC to conduct a forensic investigation with an eight-week deadline to identify irregularities, financial losses, and determine accountability among IDT officials and contractors.
The controversy deepened when the Department of Health announced the cancellation of the tender amid mounting corruption allegations.
Originally budgeted at R256 million, the tender had ballooned to over R800 million, raising red flags about financial mismanagement and potential fraud.
Political tensions escalated when the Economic Freedom Fighters (EFF) filed corruption charges against Macpherson, claiming he interfered in IDT tender processes and bypassed leadership to demand reports.
The Democratic Alliance (DA) quickly defended the minister, dismissing the EFF’s claims as smear tactics designed to undermine anti-corruption efforts.
The IDT board, which Macpherson dismissed for being “not quorate” with only seven of twelve required members, contested the minister’s intervention. The investigation was necessary due to governance failures within the IDT that prevented them from properly overseeing the tender process.
They claimed there were misunderstandings about internal reviews already underway, but Macpherson insisted the board couldn’t effectively investigate itself.
ActionSA joined the fray by demanding Macpherson’s suspension pending investigations, while ANC-aligned stakeholders criticized the EFF’s timing, suggesting it was an attempt to derail legitimate anti-corruption measures.
The Global Fund has expressed concerns over the mismanagement of funds, putting future health program funding at risk.
The scandal highlights ongoing challenges in South Africa’s procurement processes, particularly in the health sector.
Chairperson Kwazikwenkosi Mshengu sent a formal letter to Macpherson on December 10 addressing concerns over the minister’s interpretation of the IDT’s internal review intentions.
As PwC’s investigation continues, Macpherson has vowed to see the process through despite the threats against him.
“South Africans deserve accountability for every rand of public money,” he said in a statement.
The outcome of this investigation could have far-reaching implications for government procurement policies and oversight mechanisms.
Conclusion
Despite facing death threats, Macpherson remains determined in the R800 million oxygen tender dispute. Officials are investigating the threats while the legal battle continues. The controversy has raised concerns about procurement practices in the healthcare sector. As the case moves forward, both sides await the court’s decision that could impact how medical supplies are contracted in the future.
