WeeklySA_AdminSHADY: The awarding of the contract was not fair and transparent
By Monk Nkomo
THE national department of health rejected a reputable communications company that demanded R69 million – nearly half the amount paid to Digital Vibes – for the National Health Institution media contract that has now landed the department’s former minister and several senior officials in hot water over wasteful and irregular payments.
The Special Investigating Unit has established that the awarding of the R150 million NHI media campaign contract to Digital Vibes company was invalid because the procurement process was not fair, equitable, transparent, competitive and cost-effective.
The appointment of Digital Vibes was seemingly an arbitrary decision by Dr. Anban Pillay who was Acting Director-General of the National Department of Health (NDOH). ‘’ The decision was seemingly made even before Digital Vibes had submitted its quotation’’, the SIU said. The former Minister of Health, Dr. Zweli Mkhize, also had a vested interest in the appointment of Digital Vibes to be awarded the contract to render communication services in respect of the National Health Insurance media campaign, according to the SIU report.
The department entered into a Service Level Agreement (SLA) with Digital Vibes on November 29, 2019. The value of the award was initially R141 million.
After the awarding of the contract, the SIU received allegations of potential irregularities from a whistle-blower. Subsequent investigations revealed that despite having received a quote of R69 million from another company, Brandswell, which was far less than that of Digital Vibes and offering the same services, the department’s Technical Evaluation Committee (TEC) opted for Digital Vibes.
The Service Level Agreement with Digital Vibes was signed by Shireen Pardesi, Chief Director of the department of health despite the fact that she was not authorized to sign an agreement of this value on behalf of the department. ‘’ She therefore acted ultra vires her powers,’’ according to the report.
The SIU established that on July 12, 2019, Ms. Precious Matsoso, sent a letter to National Treasury requesting approval to deviate from the normal bidding process to appoint Digital Vibes as communication specialists. Later that month the department of health requested approval to deviate and secure R133 million for the project. The National Treasury responded by requesting the department to advertise the tender for 14 days. A list of ten suppliers was sent to Treasury but in the end only two bidders contested the deal – Digital Vibes and Brandswell.
What followed thereafter was a rampant trail of corruption which resulted in Brandswell being unlawfully disqualified after being illegally allocated a score of 59,2 % for functionality assessment by the Technical Evaluation Committee (TEC) compared to Digital Vibes’ score of 100%. The minimum score of qualification is 60%. The TEC members comprised Pillay, Joseph Popo Maja, Head of Communications at the department of health and Pardesi.
The SIU report found that if Brandswell was scored fairly and correctly, it would have been awarded the contract. The report established that Pillay, Maja and Pardesi had ‘’ willfully or at least grossly negligently performed their functions as members of the TEC’’.
The department of health was obliged to award the contract to Brandswell ‘’ which was seemingly not the outcome Dr. Pillay wanted to achieve because he was clearly vested in appointing Tahera Mather by all means possible’’ for the contract.
‘’The recommendation by the TEC to award the contract to Digital Vibes was invalid in terms of the provisions of section 2 of the Constitution. Therefore the Service Level Agreement that was concluded with Digital Vibes was void.’’
