Fraud revealed in R800 million oxygen plant tender, Macpherson announces disciplinary action against IDT CEO

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29 July 2025

Public Works Minister Dean Macpherson announced a series of disciplinary and criminal actions following the shocking findings of a forensic investigation into the controversial R800 million Pressure Swing Adsorption (PSA) Oxygen Plant tender. 

During a media briefing on Tuesday afternoon, Macpherson revealed the final results of a forensic investigation into the controversial R800 million Pressure Swing Adsorption tender awarded by the Independent Development Trust (IDT)

The investigation was conducted by global consultancy firm PricewaterhouseCoopers (PwC), following months of scrutiny and allegations of procurement irregularities by the entity’s officials.

The report exposes systemic governance failures, procedural breaches, and outright fraud that have plagued the IST for years and threaten South Africa’s public health infrastructure and integrity.

“From the moment I stepped into this role, I was already aware of long-standing allegations of maladministration, financial misconduct, and corruption at the IDT,” Macpherson declared during a briefing in Pretoria. 

“These concerns have haunted the agency for years; unfinished projects, irregular tenders, and audit disclaimers have severely damaged its credibility.”

The latest scandal, which came to light in October 2024, revealed alarming details about the procurement process for the PSA Oxygen Plant project. With a budget of R836 million, this crucial initiative was to supply oxygen systems to 60 hospitals nationwide. Of this, R528 million was allocated directly to the IDT.

The forensic report, which Macpherson presented publicly, indicates that multiple companies awarded contracts lacked proper certification, verifiable contact details, or legitimate operational capacity. 

Source:IOL