Tebogo Malaka, Chief Executive Officer of the Independent Development Trust (IDT), has been placed on precautionary suspension following the release of a forensic report detailing severe irregularities in a multi-million-dollar public health infrastructure project. While no official finding of misconduct has yet been made against Ms Malaka, the suspension—initiated on 1 August 2025—is intended to preserve the integrity of the ongoing investigation.
The forensic inquiry, conducted by PricewaterhouseCoopers (PwC) and commissioned in January 2025, was made public on 29 July by the Minister of Public Works and Infrastructure, Dean Macpherson. The investigation scrutinised a R836 million (approximately US$46.42 million) oxygen plant programme intended to supply 55 public hospitals in South Africa—an initiative commissioned by the Department of Health and implemented by the IDT. Carmen-Joy Abrahams, a deputy director-general in the Department of Public Works and Infrastructure, has assumed the role of acting CEO in the interim.
The PwC report recommends disciplinary proceedings against Ms Malaka, specifically citing her failure to intervene in or address systemic breaches in procurement protocols. These failures, according to the report, may have resulted in extensive financial losses to the state.
The forensic findings confirm widespread suspicions previously raised by investigative journalists and civil society organisations. Central to the controversy is the awarding of a R428 million (roughly US$23.77 million) contract to Bulkeng (Pty) Ltd, a company described as a shell entity—operating without permanent staff or offices. The report reveals that Bulkeng allegedly used forged documentation and misrepresented itself as part of a joint venture. It also lacked accreditation required for the execution of the project.
The report further highlights that essential procurement safeguards were circumvented. Notably, Bulkeng’s bid documents were reportedly accepted beyond the stipulated submission deadline, violating standard procedure. Additionally, officials from the Department of Health, designated as observers, were irregularly granted voting powers on the bid evaluation committee.
Initially budgeted at R216 million (approximately US$11.99 million), the project’s cost ballooned nearly fourfold. Despite this, by December 2024, not a single oxygen plant had been delivered or commissioned. The report underscores that Ms Malaka endorsed these irregular procurement activities and failed to act on warnings raised by internal IDT personnel.
This episode marks another chapter in the IDT’s long history of governance failures. The organisation previously faced public scrutiny in 2012 for a R1.6 billion (around US$88.84 million) fencing contract scandal, and has repeatedly received audit disclaimers. On 5 July 2025, a new IDT board was appointed by the South African Cabinet, tasked with restoring governance, rebuilding trust, and improving institutional performance.
The Select Committee on Public Infrastructure has expressed cautious optimism about the leadership changes, viewing them as a potential pivot towards institutional accountability and structural reform. Meanwhile, the Department of Health has begun preparations to re-tender the oxygen plant project.
The failure of this infrastructure programme comes at a critical time. South Africa’s public hospitals continue to face pressure due to outdated or non-existent oxygen delivery systems. As the inquiry proceeds, the spotlight remains firmly on public procurement practices, institutional oversight, and the imperative for accountable leadership in South Africa’s development agencies.
