President Cyril Ramaphosa on Wednesday authorised the release of the Special Investigating Unit’s (SIU’s) report into the Digital Vibes contract.

The SIU report found that former Health Minister Zweli Mkhize’s department awarded a R150-million contract, in 2019, to Digital Vibes to provide communication services for government’s National Health Insurance (NHI) and, later, its Covid-19 response.

Digital Vibes was linked to aides of Mkhize.

The report indicates that the procurement processes in respect of the NHI and Covid-19 media campaigns, were irregular and the subsequent contracts were void.

Irregular expenditure amounting to about R150-million, and fruitless and wasteful expenditure amounting to between R72-million and R80-million, were incurred by the Department of Health (DoH), according to the findings.

ANBAN PILLAY

The report also revealed that former acting director-general of the DoH Dr Anban Pillay, should be criminally prosecuted for financial misconduct.

“Dr Pillay, in a letter to the National Treasury dated 11 May 2020 where he requested approval to deviate from normal procurement procedures, made numerous material intentional misrepresentations to the National Treasury in an attempt to obtain belated approval to deviate from normal procurement procedures. The obtained evidence indicates that he committed fraud in this regard,” stated the SIU’s report.

It was also revealed that Tahera Mather and Naadhira Mitha, which the report lists as “close associates” to Mkhize, committed fraud.

The report further stated that on July 15, 2019, Mkhize sent a WhatsApp message to former director-general of the department Precious Matsoso telling her to “sort out” the NHI contract with Digital Vibes.

During the relevant period, Digital Vibes also paid R6 720 for repairs at a property belonging to Mkhize.

On May 2, 2020, Digital Vibes transferred R300 000, via a company belonging to Mather, to a company belonging to Mkhize’s son.

The report further revealed that on May 4, 2020, Digital Vibes paid R160 000 to a Pietermaritzburg car dealership for the purchase of a second-hand 2003 Toyota Land Cruiser, registered in the name of Mkhize’s son.

Ramaphosa received the report and referrals on the Digital Vibes matter from the SIU in early July 2021.

In a statement on Wednesday, acting Presidency spokesperson Tyrone Seale said third-party notices were sent to all persons or entities referred to in the report for the opportunity to object to its publication or part thereof.

"This was done in the interest of fairness and in terms of the Promotion of Access to Information Act (PAIA), following a number of PAIA applications by persons and parties who wished to have sight of the report," the Presidency said.

Download the SIU report here: https://www.polity.org.za/article/siu-digital-vibes-report-2021-09-29