Minister challenges committee to investigate ARV tender irregularities

Health Minister Aaron Motsoaledi challenged the Health Portfolio Committee on Wednesday to take a resolution that will recommend the Special Investigating Unit (SIU) to probe the ARV tender.

This comes after EFF MP Naledi Chirwa suggested that the committee recommend the SIU to probe the tender amid suspected irregularities.

“We are of the idea this is another corruption ploy under play by people involved at political level,” said Chirwa.

“We want the SIU come in and investigate after so many red flag and these guys got the tender,” she said in reference to the awarding of the tender to Barrs Pharmaceuticals Industries and Innovata Pharmaceuticals, which were placed on business rescue in December 2025.

Chirwa said the two companies, owned by Avacare Health subsidiaries, were awarded the tender despite not having financial capacity.

She also said the Public Finance Management Act required companies bidding for state contracts to show financial capacity, but it was not the case with the two companies.

“This tender process must be started afresh,” said Chirwa.

Motsoaledi said he would abide by the decision of the committee if it decided on the issue of recommending the SIU to probe the ARV tender.

“If you say bring the SIU, I welcome it with two hands. l will be the happiest person if that is done because there is an insinuation that I might have anything to do with it,” he said.

“We depend on your resolution and will accept whatever you resolve,” added Motsoaledi.

Earlier, Motsoaledi told parliamentarians that due diligence was assured during the bid evaluation process through the assessment of all bidders against the requirements specified in the conditions applicable to the tender.

He noted that there was a belief among MPs and the media that the department should have examined the balance sheet of the companies to see if they had enough money.

“The belief is that we could have avoided the companies' undergoing business rescue. As far as I remember, there has been no tender issued by the Department of Health where we examine the balance sheet of a particular company.”

Motsoaledi said the department did not examine balance sheets or other financial statements because this would require outsourcing to audit companies, which would be extremely expensive.

“Companies would claim confidentiality, and there is already a risk mitigation strategy in place. DTIC (Department of Trade, Industry and Competition) has information on which products are being imported and exported and the ongoing relations with companies, and this is shared with the department,” he said when appearing before the committee to brief them about contingency measures after two ARV suppliers were placed on business rescue.

Chirwa disputed Motsoaledi’s assertion that the department never required proof of financial capacity by companies.

“He must not lie to us and say they have never done it,” she said, adding that the PFMA and supply chain management regulations made provision for that.

In response, Motsoaledi denied he was lying.

“I said from the beginning that I don’t get involved in tenders. This information is what I was given by the officials. If it is not true, that was information I was given,” he said.

Chirwa said the minister should be either on the side of the portfolio committee or misled by officials.

She questioned why the officials did not know the companies awarded the tender were owned by the same person.

Chirwa also referred to a company named Hetero, which was reported to the Competition Commission for alleged collusion.

The company has bought Barrs and will take over the supply portion of the company placed under business rescue.

 “That must raise a valid question about how the department missed this. The minister must come up with tangible responses to how these things happened under their watch,” she added.

Motsoaledi insisted that he did not get involved in tenders.

However, he noted Chirwa posted on social media X that he and Director-General Sandile Buthelezi have eaten something and they must vomit it, a move he viewed as a suggestion of corruption.

“I would like to state it clearly in front of this committee. I will be very happy if you call the SIU or the Hawks to investigate the tender. I will be very happy because I also want my name to be cleared.”

CFO Phashwa Mamogale said all bidding requirements were met by the companies when the tender was awarded.

Mamogale said the directors of the two companies had separate directorship, and the tender requirements for the ARV contract did not require the review of the finances of the companies.

He also said that when the companies were selected, the department was not aware of the financial difficulties the companies would face.

mayibongwee.maqhina@inl.co.za