Tebogo Malaka, the chief executive of the Independent Development Trust (IDT), has been placed on a precautionary suspension following a forensic investigation into a problematic R836 million oxygen plant project. While no official finding of misconduct has been made against her, the suspension, which began on Friday, 1 August 2025, is intended to allow for an uninterrupted investigation.
The suspension follows the completion of a forensic report by PwC, which was commissioned in January 2025. According to Public Works and Infrastructure Minister Dean Macpherson, the report was made public on 29 July. It recommended disciplinary action against Ms Malaka, citing her failure to prevent or act on violations that may have cost the state a significant sum of money. While the investigation is ongoing, Carmen-Joy Abrahams, a deputy director-general from the Department of Public Works and Infrastructure, will serve as acting CEO.
The IDT was tasked with implementing a project for the Department of Health to roll out oxygen plants to 55 public hospitals. This programme quickly descended into what has been described as a textbook case of public sector mismanagement. The PwC report confirmed many of the suspicions that had been raised by investigative journalists. It revealed that a shell company, Bulkeng (Pty) Ltd, with no staff or official premises, was awarded a R428 million contract for the project. The company allegedly submitted forged documents, falsely claimed to be in a joint venture, and lacked the necessary accreditation.
The forensic report also highlighted that several key procurement safeguards were ignored, including the acceptance of Bulkeng’s bid documents after the specified deadline. It also noted that Department of Health officials who were meant to be observers were appointed as voting members on the bid evaluation committee. The project’s initial budget of R216 million grew to over R836 million, yet not a single oxygen plant had been commissioned by December 2024. The PwC report recommends disciplinary action against Ms Malaka for a number of failures, including signing off on irregular procurement procedures and not acting on concerns raised by her own team.
This is not the first time the IDT has been embroiled in controversy. The organisation has a troubled history, which includes a R1.6 billion fencing contract scandal in 2012, repeated audit disclaimers, and serious procurement lapses. A new board was appointed on 5 July by Cabinet, with the goal of restoring governance and rebuilding the IDT’s reputation. The Select Committee on Public Infrastructure has welcomed these changes, noting that they signal a shift towards stability and accountability. The Department of Health is now preparing to re-tender the oxygen plant project. In the meantime, patients in public hospitals are still waiting for this much-needed infrastructure.