Ramaphosa has SIU report on Mkhize’s involvement in Digital Vibes tender

The Special Investigating Unit’s (SIU) report on the health department’s R150 million contract with Digital Vibes – a company with strong links to Health Minister Zweli Mkhize’s associates – is on President Cyril Ramaphosa’s desk.

On Thursday, SIU spokesperson Kaizer Kganyago confirmed to News24 the report was completed and handed to Ramaphosa’s office on Wednesday.

In June, Ramaphosa said the matter of Mkhize and the disturbing contract with Digital Vibes would not be swept under the carpet.

He added he, as he had done before, would act once the SIU finalised its investigation.

Ramaphosa’s office was asked for comment and it will be included once received.

According to a Sunday Times, the report found Mkhize allegedly pressured officials to appoint the company linked to his close associates, Tahera Mather and Naadhira Mitha.

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Mkhize is on special leave pending the finalisation of the investigation into the Digital Vibes tender saga at the department.

The department initially contracted Digital Vibes for the National Health Insurance (NHI) campaign in 2019, which is when he reportedly pressured officials to appoint the agency for the R150 million communications contract.

The work was expanded to include communications on Covid-19.

The controversial communications firm scored a cool R35 million before the department approved its work.

Contravened

Both the tender and the bidding process contravened the Public Finance Management Act.

In relation to Covid-19 work, Digital Vibes received requests for work from the department before its contract expanded to include Covid-19 work.

Requests resulted in a financial commitment of approximately R35 million that the department ended up paying after the expansion was approved.

Meanwhile, the SIU has been granted an order to freeze R22 million in bank accounts linked to Digital Vibes.

The unit said it had approached the Financial Intelligence Centre (FIC) earlier this month with evidence.

The FIC assisted the SIU to place a hold on R22 million identified as funds that had flowed from money paid to Digital Vibes by the department.

The SIU said of the R150 million paid to the company, R25 million went towards the NHI media campaign, while the remaining R125 million was paid for work on Covid-19 projects.The Standing Committee on Public Accounts is expected to receive a briefing on the matter next week.