PAC asks Health Ministry to probe GHC13m spent by National Vaccine Institute on training, conferences

The Department of Health told Parliament's health committee on Friday that the R183 million spent on National Health Insurance (NHI) communication was value for money. This follows allegations from the Special Investigating Unit (SIU) and the Auditor-General of South Africa (AGSA) about NHI spending. The department denied claims that funds were diverted from critical health programs to NHI marketing, particularly regarding contracts given to KMTV Media and Dots Design Agency.

Prof Nicholas Crisp presented the department's response, stating that the matter was referred to the SIU and AGSA for investigation. The department explained that the R1 620 hourly rate quoted in the bid document for KMTV was not the contract's value, but rather the rate for consulting services. KMTV could charge this rate for in-house work or add a 10% management fee for third-party services.

The R183 million figure grew from R146 million due to the addition of Dots' event management costs. The department defended its payments, explaining that orders were placed in its procurement system, and payment required matching POs to invoices, which were checked and approved. Concerns about Dots Design Agency, which was later found to be insolvent, were addressed, with the department noting that the company faced liquidation orders.

The department confirmed that its spokesperson, Foster Mohale, was a member of the tender committee, but also clarified the minister's long-standing relationship with KMTV's owner.