Dean Macpherson Defends PwC Appointment to Probe R800 Million Oxygen Plant Scandal

A High-Stakes Investigation

Public Works and Infrastructure Minister Dean Macpherson has defended the appointment of PricewaterhouseCoopers (PwC) to investigate corruption allegations surrounding the R800 million oxygen plant project, saying the scale and sensitivity of the case demanded a credible and experienced service provider.

Addressing Parliament during the Economic Cluster briefing, Macpherson highlighted “serious administration fraud and corruption” in the rollout of pressure swing adsorption (PSA) oxygen plants managed by the Independent Development Trust (IDT).

“On 23 July 2025, the Department appointed PwC to conduct a comprehensive investigation into the alleged serious administration fraud and corruption regarding the IDT’s rollout of the PSA oxygen plants,” he said.

Why PwC?

ANC MP Noluthando Makasi questioned why PwC was selected and which other companies were considered. Macpherson explained that three quotations were received, but only PwC met the technical and experience standards required for such a sensitive probe.

“The Department chose PwC for their experience, capacity, and reputation,” he said. Other bidders included Analytical Forensic Investigative Services and Abacus Financial Crime Advisory, who fell short of meeting the complex investigation requirements.

When ANC MP Sipho Mahlangu asked about compliance with the Preferential Procurement Policy Framework Act, Macpherson confirmed that all procurement rules were followed.

Bribery Allegations and Suspended IDT CEO

The appointment of PwC comes amid explosive allegations against the suspended IDT CEO, Tebogo Malaka, who reportedly attempted to bribe investigative journalist Pieter-Louis Myburgh. A Daily Maverick exposé included video footage allegedly showing Malaka and IDT spokesperson Phasha Makgolane offering R60,000 in cash to halt a pending investigation.

DA MP Edwin Bath pressed Macpherson on why Malaka had not been arrested. Macpherson clarified:

“As the Executive Authority, I do not conduct disciplinary cases against CEOs. That is with the board. The question of her arrest is for the Police Minister. But there was a clear intent to bribe Mr Pieter-Louis Myburgh, and the public rightly asks why no arrest has yet occurred.”

Macpherson also noted the silence of political parties including the ANC, ActionSA, EFF, and MKP regarding the scandal, adding to public frustration.

Cost and Procurement Questions

RISE Mzansi MP Makashule Gana questioned if PwC’s bid was the cheapest. Macpherson acknowledged that Abacus was R61,000 cheaper, but PwC was selected under DPWI Circular 229 of 2023/2024 due to the technical complexity.

“The deviation was motivated and approved by the Acting Director-General for Supply Chain Management,” he said.

Allegations of Wider Corruption

FF Plus MP Phillip van Staden raised concerns that some MPs may have received payments from the IDT. Macpherson admitted the allegation exists but confirmed no evidence has been found.

“If Miss Malaka was prepared to bribe a journalist, she might have been prepared to bribe anyone. We tried to pursue the allegation, but we couldn’t verify it. It remains an allegation for now,” he said.

Public Reaction

The scandal has sparked social media outrage, with citizens questioning how a multi-million-rand project meant for vital oxygen infrastructure could be tainted by corruption. Many South Africans voiced frustration at the slow pace of accountability, calling for swift arrests and transparency.

“This is public health money, not playground cash. How do people think this affects hospitals and patients?” tweeted one concerned citizen.

The PwC investigation is now underway, with the hope that it will unravel the alleged fraud, hold accountable those responsible, and restore public trust in projects critical to healthcare infrastructure. The appointment underscores the government’s acknowledgment that tackling corruption in high-value projects requires both technical expertise and independence.

{Source: The Citizen}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com