No vetting was done on Digital Vibes before it was awarded controversial tender

Health Minister Joe Phaahla says the Department of Health had relied on information furnished by Digital Vibes on the declaration of bidder’s past supply chain management practices when it did its own vetting.

Phaahla also said the qualifications of team members and individuals of Digital Vibes were not vetted. He revealed this while responding in writing to parliamentary questions from DA MP Haseena Ismail. Ismail enquired about the extent of vetting processes that were conducted by his department and whether the qualifications of team members and individuals in Digital Vibes were vetted.

The Special Investigating Unit (SIU) found that the department irregularly awarded the R141 million media awareness campaign tender for the National Health Insurance and another R125 million tender for Covid-19 when former minister Zweli Mkhize was the department’s political head.

Mkhize resigned after he was implicated in the irregular awarding of the contract to Digital Vibes that was linked to people who worked with him at the department, the ANC and Co-operative Governance and Traditional Affairs Department. In his written response, Phaahla said the department’s vetting had covered several aspects pertaining to the suitability of the company.

This entailed checking if Digital Vibes was fit to do business with the department by assessing its capability and capacity through functionality evaluation which was part of terms of reference. Phaahla said the department also checked if the Digital Vibes operated in the required business sector.

“The department also checked if Digital Vibes and its directors/shareholders were not restricted to do business with the State through the National Treasury tender defaulters register,” he said. However, Phaahla said the department relied on the information certified by Digital Vibes as provided for in the standard bidding document (SBD).

The SBD asks the bidder or any of its directors if they are listed on the National Treasury database of restricted suppliers, among other things. “The department made use of the declaration of interest, standard bidding document 4 to be completed by the bidder and the bidder had to sign the declaration form certifying that the information furnished is true and correct.”

Phaahla also said the qualifications of team members and individuals of Digital Vibes were not vetted. “Bidders are bound by the general condition of contract that their submission is truthful in all aspects and that any misrepresentations are dealt with in line with Preferential Procurement Regulations 2017.

“If after award it becomes apparent that the bidder misrepresented facts on the submission of their bidding documents the contract may be cancelled which may lead to the entity being restricted from doing business with the state for a specified period,” he said.

The SIU told the Standing Committee on Public Accounts earlier this month that the department paid R25 million of the R141 million National Health Insurance tender and R125 million for the Covid-19 awareness campaign.

The corruption busting body has since successfully obtained an interim preservation order to freeze R22 million in 10 accounts pending the outcome of an application to review and set aside the appointment of Digital Vibes for both the NHI and Covid-19 media campaigns totalling R266 million.