The Department of Health’s (DoH) R836 million oxygen plant installation project for 55 government hospitals is under scrutiny due to the appointment of Bulkeng (Pty) Ltd. Despite its questionable background, project overseer Independent Development Trust (IDT) awarded Bulkeng a R428 million contract, raising comparisons to the Digital Vibes scandal.
Bulkeng, a company with limited experience in medical technology, lacks SAHPRA certification, a requirement outlined in the bid documents. The regulator denied the claim after IDT initially claimed that Bulkeng was SAHPRA-registered. In response, DoH stated that Bulkeng had partnered with an entity supposedly holding the necessary accreditation; however, no such company was found in the South African business registry.
This questionable appointment has ignited concerns, particularly given Bulkeng’s history of diverse, unrelated bids ranging from construction to mining and laundry equipment.
Additional contracts spark further scrutiny
In addition to Bulkeng’s R428 million contract, a R152 million contract was awarded to Maziya General Trading, a firm with a history of tender controversies. While Maziya’s partner in the venture, On Site Gas Systems International, is registered with SAHPRA, Maziya itself is not. This partnership has raised questions about qualifications and transparency in the tendering process.
In late 2022, DoH estimated the project’s cost at R256 million. However, under IDT management, the budget rose significantly, reaching over R800 million. The DoH and IDT attribute this to VAT, professional fees, maintenance costs, and COVID-related “price escalations.” However, sources assert that the initial estimate was all-inclusive, covering maintenance over three years, which raises further questions regarding the budget increase.
Despite these challenges, the IDT maintains that the project will benefit rural and township hospitals by securing reliable oxygen supplies to enhance healthcare services.