IDT CEO Tebogo Malaka resigned just weeks before her disciplinary hearing was scheduled to sit. A forensic report found she failed to act on red flags in an R836 million oxygen plant tender.
IDT website
Independent Development Trust CEO Tebogo Malaka has resigned without receiving any exit compensation.Her resignation takes effect from 31 January,days before her disciplinary hearing was set to continue.Malaka was placed on precautionary suspension in August after a PwC investigation exposed irregularities in a R836 million oxygen plant programme for about 55 hospitals.Embattled Independent Development Trust (IDT) CEO,Tebogo Malaka,has resigned from her position at the state-owned entity.
The IDT confirmed her resignation on Wednesday,stating that it would take effect from 31 January,with no exit compensation,days before her disciplinary hearing was scheduled to continue.
“The Board has accepted the resignation and confirms that Mr Sfiso Nsibande,seconded from the Construction Industry Development Board (CIDB),will continue to serve as Acting Chief Executive Officer to ensure organisational stability and continuity,” the IDT said in a statement.
The entity stated that,while standard governance and employment practices require the terms of Malaka’s departure to remain confidential,it would continue to cooperate fully with any ongoing investigations that may result in criminal and/or civil proceedings against any “current or former officials or employees”.
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“The board will now commence a formal process to appoint a permanent chief executive officer.”
READ | IDT CEO Tebogo Malaka suspended after R836m tender scandal probe
Malaka was placed on precautionary suspension in August after a PwC investigation exposed irregularities in a R836 million oxygen plant programme for about 55 hospitals.
The tender was intended to install pressure swing adsorption oxygen plants in numerous public hospitals,funded by the Global Fund.
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Major corruption allegations were raised,including inflated costs,irregular awarding of contracts to companies lacking proper registration (such as South African Health Products Regulatory Authority accreditation),and governance failures.
The PwC investigation highlighted Malaka’s failure to prevent or act on violations that may have cost the State hundreds of millions of rands.
It further stated that she did not act on the red flags raised by the Department of Health and failed to convene the necessary risk committees to assess the matter.
The PwC findings recommended that disciplinary action be taken against Malaka,as well as several other IDT officials.
Daily Maverick reported that Malaka and her spokesperson,Phasha Makgolane,offered its investigative journalist Pieter-Louis Myburgh R60 000 in a white Dior shopping bag in an attempt to quash its investigation into the dodgy contract,as well as another investigation into one of Malaka’s upmarket properties.
READ | Report recommends disciplinary action against IDT CEO in R800m oxygen plant tender
This was captured on camera,and criminal charges were laid by the publication and Public Works Minister,Dean Macpherson in September last year.
The DA has since questioned why Malaka and Makgolane have not been arrested for the alleged bribery attempt.
In a statement,Macpherson said,“While Ms Malaka resigned before the disciplinary process could be concluded,I welcome the fact that her resignation comes without a golden handshake,” he said.
“Importantly,her resignation does not immunise her from criminal investigations or any civil proceedings that may arise. This reaffirms our position that no individual in the Department of Public Works and Infrastructure,or any of its entities,is above ethical governance,the law,or accountability – and that accountability does not fall away simply because someone resigns.”
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He urged law enforcement agencies to conclude the criminal investigations without delay and to act decisively should the evidence warrant prosecution.
“Since the IDT board’s appointment last year,great strides have been made to bring governance stability to the entity,” he said.
“However,the resignation does not end the problems at the IDT,but is a welcome step in our continued reform agenda in the Department of Public Works and Infrastructure,which is anchored on ethical governance that puts the South African public first.”
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