The Special Investigating Unit (SIU) has published its report on the Digital Vibes probe after President Cyril Ramaphosa authorised its release.
“President Ramaphosa received a report and referral on the Digital Vibes matter from the Special Investigating Unit (SIU) in early July 2021. The Presidency subsequently sent third-party notices to all persons or entities referred to in the report, so they could have an opportunity to object to its publication or part thereof.
“This was done in the interest of fairness and in terms of the Promotion of Access to Information Act (PAIA), following a number of PAIA applications by persons and parties who wished to have sight of the report,” the presidency noted in a statement.
Digital Vibes report: Here are the findings
A whistleblower was all it took to launch a full-scale investigation into an underhanded contract between the National Department of Health (NDOH) and Digital Vibes, a digital marketing company linked to former minister Dr Zweli Mkhize.
It was alleged that the disgraced minister had strategically placed his longtime associates as favourites to score a tender to lead the National Health Insurance (NHI) media campaign, as well as the rollout of the department’s COVID-19 awareness drive.
Faced with mounting pressure, Mkhize stepped down from his ministerial role in early August, citing that it was the best course of action to follow as his name had been muddied in controversy.
Of course, the health minister vowed to challenge the final report in court as, in his opinion, the SIU had approached the probe with a “predetermined outcome and a closed mind in the investigation.”
According to the SIU, these were the outcomes of the Digital Vibes investigation:
- The procurement processes in respect of the NHI and Covid-19 media campaign were irregular
- Subsequent contracts between the marketing company and the NHOD were void
- Irregular expenditure in the shoddy partnership amounted to more than R150 million
- Fruitless and wasteful expenditure amounted to R152 million, a cost incurred by the NDOH
- The SIU has called for the criminal prosecution of Dr Anban Pillay, the former Director-General of the NDOH, for financial misconduct
- Tahera Mather, Radha Hariram and Naadhira Mitha, executives of Digital Vibes, are likely to be criminally charged with fraud for their role in duping normal procurement process through their close relationship with Mkhize and, as a result, scoring multi-million-rand contracts.
- Digital Vibes failed to declare and pay company tax. as well as value-added tax (VAT), to the South African Revenue Services (SARS)
- Mkhize and Mather’s conflict of interest stretches back to 2019 when the Digital Vibes executive was working as the minister’s strategic communications advisor. It’s also believed that during this period, numerous attempts were made to place Mather inside the NDOH as an expert consultant.
- WhatsApp messages between Mkhize and former Director-General of the NDOH show that the minister had played an active role in pushing the underhanded deal with Digital Vibes through
- Digital Vibes paid R6 720 for repair work on a property owned by Mkhize
- R300 000 was transferred from Digital Vibes’ account to that of the son of the former minister. The unnamed son also received a pre-owned 2003 Toyota Land Cruiser valued at R160 000 from the marketing company
- This money, it’s believed, was part of a R50 million payment made by the NDOH to Digital Vibes for services related to the COVID-19 media campaign.
You can read the full 114-page report here.