Denying the truth doesn’t change the fact that former health minister Zwele Mkhize lied to us about his role in the Digital Vibes scandal. The Special Investigating Unit report into the R150m dodgy contract has now shown that the former health minister has directly influenced the decision to award the contract that wasn’t even part of the NDoH’s budget to his friends – his long-serving personal spokesperson Tahera Mather and his former personal assistant Naadhira Mitha.
Mkhize’s side-kick, the former director-general Anban Pillay, was found to have put undue pressure on the NDoH’s CFO to “find the money” and to identify funds, while he also grossly misrepresented facts about the contract to the National Treasury. He was the only one recommended to be criminally prosecuted for suspected financial misconduct, even though Mkhize, former head of communications Popo Maja and former director-general Sandile Buthelezi among others were heavily implicated.
But opposition parties are baying for more blood, saying that no one implicated in the report should escape accountability. And rightly so.
After reading the summary (extracted from the report) of an internal memorandum the CFO sent to Pillay, you be the judge as to who should be prosecuted.
- The award to Digital Vibes was made on an “as and when needed basis due to the fact the Department could not commit to the R 140 million that was submitted as part of their bid documents.”
- The Digital Vibes work was not part of the NDOH budget.
- The work performed by Digital Vibes was to be assessed, based on the available budget and agreed-upon work plan.
- The SLA had been signed on 29 November 2019 and the first invoice of Digital Vibes had been received on 9 December 2019.
- The CFO had not had sight of the SLA, prior to it being signed.
- On 14 January 2020, the CFO had raised various concerns relating to the matter.
- Finance had been instructed to “find the money” and to identify funds.
- One of the major concerns, was the monthly payment of R2.5 million to Digital Vibes.
- Digital Vibes had been requested to perform work, based on verbal and email instructions.
- It was not clear whether the work performed by Digital Vibes, was covered by the SLA or whether it was out of scope work or whether the work could be performed by the NDOH staff.
- The work performed by Digital Vibes should be verified.
- Up to 31 March 2020, an amount of R43 million had been paid to Digital Vibes, which included R18 million for Covid-19 (of the R35 million Digital Vibes quotation approved by Dr Pillay).
- The CFO indicated that “This still has to be sent to Treasury for concurrent approval as this is a huge scope variation”.
- The money that had been paid to Digital Vibes, had been approved by Dr Pillay.
- The “amount seems to be exorbitant and excessive and the NDOH needs assurance that value for money was derived.”
- urrently there were a number of invoices waiting to be authorised that ran into several million rand.
- He concluded with “The position in the current financial year is the same. This does not have specifically earmarked budget and any expenditure could lead to unauthorised expenditure and be subjected to Section 38(2) of the PFMA and the Public Audit Amendment Act. The file has been selected for audit by the Auditor-General.”
Meanwhile, in the markets the dollar continues to dominate as the Federal Reserve’s stimulus tapering looms and risk-off sentiment grows. Chinese PMI released this morning shows that factory activity contracted in September for the first time since the pandemic began last year, a sign of the damage a widespread electricity crunch is having on an already slowing economy. Despite emerging market currencies still under pressure, with the rand firmed to under R15.10 to the US dollar this morning after briefly breaking above the key technical R15.20-level in the previous session. South Africa is due to release PPI data today.
Here’s a roundup of the world’s top and most interesting headlines:
Digital Vibes
I’m picking up bad vibrations: ANC’s many Digital Vibes-spiced problems in a time of elections – Daily Maverick
I didn’t ask for Digital Vibes money, my messenger did – Mkhize – Sowetan
Digital Vibes scandal: SIU finds that media company also did not pay tax – News24
‘Find the money’ – How minister, top officials worked to bankroll irregular Digital Vibes contract – News24 (For subscribers)
Released: Damning SIU report finds at least R72m fruitless and wasted, implicates Mkhize, DoH officials in Digital Vibes contract – Daily Maverick
SA Business
President Ramaphosa in the dark about his household electricity costs – Daily Maverick
Global tech companies are turning to South Africa for media and marketing expertise – BusinessTech
Banking app fraud rockets due to phone snatching – Fin24
Global Business
COVID-19: Warning of redundancies as £70bn furlough scheme ends – Sky News
China factories contract for first time since pandemic began – Bloomberg
Dollar Tree Announced Price Increases and People are Losing it: ‘This is Really the End of Times I Fear’ – Entrepreneur
Markets
A $150 billion wipeout turns Swiss stocks into month’s losers – Bloomberg
Most Asian markets track Wall St up but traders still on edge – AFP
Oil falls after US inventories post surprise gain – Reuters
Opinion/In-depth
Dark days ahead: A bleak future awaits future generations if world leaders and industries continue to ignore climate crisis – Daily Maverick
TAKE A LOOK | The view from space as Cape Town’s main dam filled up – Business Insider
China’s coal shortage means higher prices for the world – Bloomberg
Video
‘Unheard’ John Lennon recording sells for €50,000 in Copenhagen – Euronews
Inside the $55 million Manhattan penthouse on the 90th floor – CNBC
WATCH | Cape Town residents are asking: Why did 2 ostriches cross the road? – News24
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