Select Committee welcomes report on forensic investigation on PSA oxygen plant tender


By KEDIBONE MOLAETSI

12 November 2025 – The Select Committee on Public Infrastructure and the Minister in the Presidency said it welcomes the Department of Public Works and Infrastructure’s report on the forensic investigation conducted by PricewaterhouseCoopers (PwC) into the Pressure Swing Adsorption (PSA) Oxygen Plant tender administered by the Independent Development Trust (IDT).

In his opening remarks, the committee Chairperson, Rikus Badenhorst said their interest in this matter is rooted in accountability, transparency and integrity of public procurement. Badenhorst said the PSA Oxygen Project, which is valued at over R800 million, was intended to deliver life-saving services, ensuring that hospitals across the country have reliable oxygen supply, particularly in rural and under-resourced areas.

“Allegations that surfaced of irregular appointments, inflated costs and non-compliance of the South Africa Health Professional Regulatory Authority’s (SAHPRA) requirements raise serious questions about governance within the IDT and the stewardship of the public funds.

“The committee said it notes the report that disciplinary and criminal processes have been initiated and that the CEO has been suspended and that the matter has been referred to the Directorate of Priority Crime Investigation (Hawks),” he said.

Badenhorst further said the committee appreciates the comprehensive work undertaken to uncover the facts surrounding the alleged maladministration, fraud and corruption in the management of this project, originally intended to deliver vital oxygen infrastructure to 60 hospitals across South Africa. He added that the findings highlight serious governance lapses, irregular procurement practices and failures in compliance oversight.

“I wish to commend the department and the Minister of Public Works and Infrastructure, Dean Macpheson, for acting decisively in commissioning an independent investigation once concerns emerged. The committee supports the Minister’s view that the integrity of the investigative and disciplinary processes must be protected to ensure that accountability is both fair and effective.

“It is essential that neither political pressure nor public speculation be allowed to compromise the credibility of the process now under way. The committee notes with appreciation that disciplinary proceedings have commenced, criminal referrals have been made to the Hawks, and corrective steps have been taken to strengthen supply chain management within the IDT. These are critical actions to restore public confidence in the State’s infrastructure-delivery institutions,” said Badenhorst.

He said the committee looks forward to receiving the full presentation and post-investigation implementation plan at the appropriate time, once all due processes have been completed. Badenhorst said their oversight role will remain focused on ensuring that every recommendation of the PwC report translates into meaningful reform, improved governance, and value for money in the use of public funds.

“Accountability, transparency, and professional competence are non-negotiable foundations of public service. The committee will continue to uphold these principles in its engagement with the department and all its entities,” he said.

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