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‘Concerns arise over R836m oxygen plant roll-out’

28 Oct 2024


Pieter-Louis Myburgh reported in Daily Maverick (28 Oct 2024) that the Department of Health’s (DoH) R836m oxygen plant installation project for 55 government hospitals is under scrutiny due to the appointment of Bulkeng (Pty) Ltd.
“Despite its questionable background, project overseer Independent Development Trust (IDT) awarded Bulkeng a R428m contract, raising comparisons to the Digital Vibes scandal.”
“Bulkeng has limited experience in medical technology and lacks SAHPRA certification, a requirement outlined in the bid documents.”
According to the DoH, Bulkeng had partnered with an entity supposedly holding the necessary accreditation; however, no such company was found in the South African business registry.
“In late 2022, DoH estimated the project’s cost at R256m. However, under IDT management, the budget rose significantly, reaching over R800m. The DoH and IDT attribute this to VAT, professional fees, maintenance costs, and COVID-related “price escalations.
According to sources the initial estimate was all-inclusive, covering maintenance over three years.

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