Digital Vibes contract ‘wasteful, irregular’ - Mkhize

This was announced by Health Minister Zweli Mkhize during a media briefing on Wednesday morning.  

The investigation was done by an independent organisation, Ngubane Tax Assurance Advisory Firm, appointed by the department.  

Mkhize said the investigation found the that the bidding process followed in awarding the tender was in contravention of the Public Finance Management Act.  

"The process of appointing Digital Vibes was irregular. The irregularity findings range from the inconsistencies in the bid committees to lack of disclosure of conflict of interest.

"Secondly, the investigators have found that an amount of some R37 million paid to Digital Vibes constitutes fruitless and wasteful expenditure.  

"Thirdly, in respect of Covid-19 related communications work that was performed by Digital Vibes, the investigators noted that the service provider received requests for work from the National Department of Health prior to their contract being expanded to include Covid-19 communication.  

"These requests resulted in a financial commitment of some R35 million that the National Department of Health ended up paying after the expansion was approved." 

Mkhize said investigators concluded that the R150 million paid to Digital Vibes during the period of 29 January 2020 to February 2021 must be repaid.

It should also be reported in accordance with the stipulations of the Public Finance Management Act. 

Disciplinary processes are underway against all those officials implicated in the saga.  

"Finally, I can also confirm that legal processes to recover funds that we believe the department should not have paid has also commenced," said Mkhize. 

A former personal spokesperson and long-time friend of Mkhize, Tahera Mather, and Mkhize’s former personal assistant, Naadhira Mitha, are at the centre of the storm.

Mkhize has denied deriving any personal benefit from the contracts.