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ActionSA is deeply concerned by reports that two National Department of Health communication contracts have ballooned to approximately R182 million. The extraordinary scale of this expenditure raises serious questions about procurement, financial oversight and accountability within the Department, and bears disturbing similarities to the Digital Vibes scandal. 

According to reports, approximately R146 million has been paid to KMTV Media and a further R35 million to Dots Design Agency, with payments reportedly drawn from at least eight departmental programmes, including critical programmes dealing with HIV/AIDS, tuberculosis and child nutrition. These figures are staggering at a time when the Department is responsible for ensuring that every rand is directed towards improving healthcare for South Africans.

The Minister has referred the matter to the Special Investigating Unit, the Auditor-General and the Public Protector. ActionSA welcomes this referral, but South Africans deserve answers about how contracts could grow to this magnitude, who authorised the expenditure, what services were actually delivered and whether proper procurement and contract-management processes were followed.

The matter also raises serious questions about financial oversight within the Department. If the Minister was unaware that contracts originating at such small values had grown into expenditure of approximately R182 million, questions must be asked about how closely his Department's finances are being monitored. If he was aware, both him and the DG as well as the CFO must account for why such expenditure was allowed to continue.

These questions are even more important given the substantial public resources being committed to National Health Insurance. South Africans have a right to know how much has already been spent on NHI-related projects, pilot programmes, consultants, healthcare practitioners and other associated initiatives, who has received this money and what tangible outcomes have been delivered. 

Government cannot ask South Africans to place greater public resources into NHI while basic questions about how existing healthcare funds are being managed remain unanswered.

This is not the first time allegations of irregular procurement have emerged from the Department of Health. The Digital Vibes scandal during the Covid-19 pandemic resulted in extensive SIU findings relating to irregularities, fruitless and wasteful expenditure, fraud, fronting and the misuse of public funds. The Department of Health cannot afford another Digital Vibes.

ActionSA therefore calls on the SIU, Auditor-General and Public Protector to conduct a thorough and independent investigation into these contracts. Where wrongdoing is established, those responsible must face the appropriate consequences and every cent must be recovered.

South Africans are already facing hospitals struggling with basic services, medicine shortages, long waiting times and healthcare professionals working under immense pressure. At a time when every rand should be directed towards frontline healthcare, the public deserves transparency over why extraordinary amounts are being spent on communication contracts and how public money is being managed across the Department.

ActionSA will continue to demand accountability from the Department of Health and a clear account from the Minister, the DG and the CFO of how South Africans' money is being spent.

Issued by ActionSA Member of Parliament Kgosi Letlape