SABC News retracts and apologises for earlier report that the Auditor General has highlighted several transgressions against procurement regulations by the Limpopo Health Department. We incorrectly presented risk factors that the AG assessed relating to the department as findings against the department. The 172 paged report looked at government’s Covid-19 procurement. Limpopo Health MEC, Phophi Ramathuba confirmed that they can account for all funds used to procure PPEs.
“Limpopo is one of two provinces that had procured within the Treasury notes. We have not gone beyond the prices that the treasury has given. That is the finding after they have done the risk assessment and investigations. Also they were very clear that all the companies were registered in the central supplier database. We have been found to have accounted for every single cent that we have been given,” Ramathuba said.
Ramathuba has clarified that the Auditor General’s 172-page report is a vindication on her department following negative publicity over the awarding of PPE contracts to 116 companies. The report is titled “First Special Report on the financial management of government’s COVID-19 initiatives”.
There have been media reports that some officials from her office might have influenced the awarding of the contracts to some companies that they have some form of relationship with. Ramathuba says the AG investigated this and other risk factors and found nothing untoward.
“On the risk assessment they put a number of things, these are the assumptions that they are going to test, throughout their auditing which they looked at and said these provinces can be at risk of having issues like excessive pricing, procurement of goods, conflict of interest, goods procured from service providers. That does not mean that is a finding.”
Ramathuba adds that the report confirmed that they can account for every cent that has been spent on PPEs in the province, and there has not been overpricing of items.
“Limpopo is one of two provinces that had procured within the Treasury notes, we have not gone beyond the prices that the Treasury has given, that is the finding after they have done the risk assessment and investigations. Also, they were very clear that all the companies were registered in the central supplier database. We have been found to have accounted for every single cent that we have been given.”
Meanwhile, the Limpopo legislature’s portfolio committee on health’s chairperson, Joshua Matlou has welcomed the report.
“So far we are very happy as a committee that the allegations that were marred in our own department from our point of view as a portfolio committee, we are happy with the pronouncement of the auditor general and as I said that we will be waiting for the completion of the investigation of the SIU as appointed by the premier and as a committee we will comment on that because every information that the department has given to the SIU we have got at our disposal as a committee.”
The Auditor-General is expected to release another special report on Covid-19 procurement next month.
In August, the MEC said that there were no issues with PPE procurement in Limpopo:
Below is the story that was originally published with the incorrect information:
The Auditor General’s nationwide report on COVID-19 has highlighted several transgressions against procurement regulations by the Limpopo Health Department. These include possible conflict of interest between some contractors and the department’s employees, which the report fears could have resulted in preferential treatment of the suppliers.
The report also highlighted that some companies did not meet the required tax compliance status, as well as some not being properly registered on the database of government suppliers.
Two out of more than 116 companies that the Limpopo Health Department contracted to supply Personal Protective Equipment (PPE) have been flagged for further assessment by the office of the Auditor-General.
They are part of 21 companies nationwide flagged for such in the Auditor General’s 172-page report, titled “First Special Report on the financial management of government’s COVID-19 initiatives.”
Transgressions
Some of the issues highlighted by the report include that the province was charged prices that exceeded the National Treasury’s COVID-19 PPE price threshold. The report also states that there is a possible conflict of interest between some suppliers and some departmental employees.
According to the report, some of the suppliers had no proven track record, while others were not listed on National Treasury’s Central Supplier Database. Moreover, the AG’s report found that some suppliers were paid without proof of delivery of the goods procured, while in some cases the quality of goods and services supplied did not meet the required standards.
There were also some suppliers who received duplicate payments as well as suppliers whose tax matters had not been declared by the South African Revenue Service. The Limpopo Health Department could not be reached for comment.
SIU investigations
Meanwhile, the provincial legislature’s portfolio committee on health says it is satisfied with the information it received from the Limpopo Health Department about PPE procurement contracts. The committee earlier summoned MEC Phophi Ramathuba and her management team to appear before members.
This followed a public outcry over alleged corruption in the awarding of over R630 million PPE contracts. There were allegations that the contracts were awarded to people linked to some senior officials from the provincial Health Department.
Committee Chairperson Joshua Matlou says they are awaiting the Special Investigative Unit’s investigations into the contracts.
“We summoned the MEC Dr. Ramathuba together with the entire management of the department and the full-fleshed report was given in relation to the PPEs, the expenditure of the department, which spent around R400 million because around R166 million is spent for other departments and as a portfolio committee, we are awaiting the investigation of the SIU because, at the moment, we treat the matter as a matter that we can’t comment on for now.”
The Auditor-General is expected to release another special report on COVID-19 procurement next month.
This story was updated to reflect the correct findings of the AG.
