Mkhize went against cabinet decision by appointing Digital Vibes – SIU report

Former health minister Dr Zweli Mkhize went against a cabinet decision on communications work on the NHI and approved budget amounting to R132m for a media campaign by Digital Vibes.

This is despite cabinet, which Mklhize was part of, having decided in June 2019 that the NHI media campaign would be handled by Government Communications and Information Services (GCIS).

These are some of the damning findings in the Digital Vibes report by the Special Investigating Unit (SIU) which was made public on Wednesday by President Cyril Ramaphosa.

The report showed that Mkhize not only played a role in the awarding of the initial NHI communications contract to Digital Vibes, a front company used by his close associates, he also played a role in approving the department’s budget on NHI media campaign, a role cabinet had decided be handled by another government entity.

Digital Vibes is run by associates of Mkhize, Tahera Mather and his former personal assistant Naadhira Mitha, and was awarded a communications contract through a closed tender process and scored payments amounting to R150m. The initial contract was for communications around NHI but later became on Covid-19-related media work after the pandemic hit the country early last year.

The 114-page report dated  June 30 2021 revealed that Mkhize had on  January 20 2020 and  June 16 2020 respectively approved budgets amounting to approximately R132m  in respect of the NHI and Covid-19 media campaigns.

“It should be noted that this budget of R46-million for the NHI media campaign was approved by the minister 52 days after the service level agreement between the NDOH and Digital Vibes had already been signed,” the report stated.

It also stated that a budget of R85m  for the NHI media campaign was approved by the minister more than six months after the service level agreement between the department and Digital Vibes had already been signed.

“In these circumstances, the minister should at least have raised concerns regarding the belated budget approval request and the fact that the budget had already been allocated to a service provider (Digital Vibes), where budget allocations are normally aligned to a need being identified before a supply chain management process is launched,” the report stated.

The report also raised concerns about Mkhize going against a cabinet resolution on the media work in relation to the NHI.

“A Cabinet Memorandum dated 13 June 2019 (the minister formed part of the cabinet at that stage) indicated that the GCIS would be responsible for the rollout of the NHI communication strategy (NHI media campaign). In the circumstances, it is astonishing that the minister thereafter, contrary to the Cabinet Memorandum, allowed Digital Vibes to be appointed (by the department) in respect of the NHI media campaign.”

Mkhize resigned as minister, just hours before Ramaphosa announced his cabinet reshuffle last month. He was replaced by Dr Joe Phaahla.

At the time, Mkhize said the SIU report was “vitiated by what my legal team characterises as its misconduct during the investigation, comprising several identifiable and serious irregularities”.

He pointed out that he was taking the report, which is currently on Ramaphosa’s desk, on judicial review in a bid to challenge its conclusions.

Mkhize accused the SIU of having worked with a “predetermined outcome and a closed mind” in investigating the saga, which he said was probed unfairly and reached a flawed report.

The report, however, also revealed that “Mather was, as early as 30 May 2019 or shortly thereafter, involved with the minister as his Strategic Communications Advisor”.

It also highlighted that Mkhize had been trying to get Mather appointed on the NHI media campaign by the department, months before the contract was signed with Digital Vibes.

Mkhize had, through WhatsApp texts among others, tried to get the department's former director- general, Precious Matsotso, to appoint Mather, according to the report.

“On 15 July 2019, the minister sent the following WhatsApp message to Ms MP Matsoso... 'Hi DG. Kindly sort out contractual arrangements. Please ask for preliminary NHI implementation plan and draft communication plan by Friday from each individual, as discussed' Emphasis added].”

“It is apparent from the contents of the WhatsApp message that the minister was giving instructions to the DG. At best, this conduct on the part of the minister was improper and at worst, the conduct of the minister was unlawful..." the report stated.

The report also highlighted what has been previously reported that Digital Vibes paid for repairs at his property amounting to R6,720 and transferred R300,000 into the account of his son, Dedani.

“On 4 May 2020, Digital Vibes paid an amount of R160,000 to a Pietermaritzburg car dealership in respect of the purchase of a second-hand motor vehicle (i.e. a 2003 Toyota Land Cruiser) for the minister’s son. This motor vehicle was registered in the name of the minister’s son,” the report stated.

It also mentioned that Digital Vibes had “by way of having Electronic Fund Transfers converted to cash, caused significant amounts of cash to be paid” to Dedani.