An alleged Covid-19 response scandal has seen around R150-million paid to a communication agency for questionable services, and the former personal spokesperson of Health Minister Zweli Mkhize has been implicated.

According to a report by the Daily Maverick, the Department of Health paid Digital Vibes more than R150-million for services linked to the National Health Insurance (NHI) programme and government's response to Covid-19. The company is reportedly controlled by Mkhize's former personal spokesperson Tahera Mather and former personal assistant Naadhira Mitha, though the two are not listed as directors.

News24 was unable to reach Mitha at the time of publication.

Mather declined to comment.

Department of Health spokesperson Popo Maja declined to comment, saying the department was investigating the matter.

Of the funds received by Digital Vibes, a reported R90-million was allegedly channelled to entities set up by Mather and Mitha, as well as businesses and personal accounts of Mather's immediate family. Only around R40-million was reportedly recorded on company receipts for legitimate services provided and other costs related to the contract.

The company reportedly charged the department for arranging media briefings, interviews and public engagements – something usually handled by the department's communication staff. The Daily Maverick report also found the company added significant mark-ups to services provided by subcontractors.

The report estimated that less than R40-million (27% of the total earnings) went towards legitimate expenses on the contract, such as salaries, payment for awareness adverts, design work and rent.

In February, the Daily Maverick published allegations of how Digital Vibes paid Mather and Mitha soon after the company scored an emergency R82-million contract with the health department for services related to the Covid-19 pandemic. The amount involved has since ballooned to around R150-million.

Soon after the exposé, Mkhize said the department's Director-General Sandile Buthelezi had flagged the contract in January and advised that it be probed by an external investigator.

The minister said Buthelezi told him the Auditor-General of South Africa had found the contract was awarded irregularly.

The contract has subsequently been suspended and is being investigated by the Special Investigating Unit.