Response to alleged irregularities in the awarding of the laundry services contract
In the 2014/15 financial year, a resolution was taken by the Department of Health to insource laundry services in the medium to long term. The resolution was taken in a workshop hosted by the Minister of Health and the Premier. This meant that all the hospital based laundries were to be built, refurbished or rehabilitated. Furthermore, the department was to procure laundry services to assist institutions whilst addressing all the laundry challenges in the province.
The Department of Health then advertised a bid for accreditation of service providers for rendering laundry services for a period of three years. The accreditation will only convert into a contract immediately when a hospital activates its right to source services from the accredited bidder. The accreditation award was done in July 2015 as per SCM prescripts.
The Provincial Government rejects the reports that we have awarded anyone a contract that is worth R2.2m a month. We view such reports as exaggerated and malicious. We are worried this reporter continues to undermine our rebuilding process as a Provincial Government and we are calling on him to refrain from doing so and retract these malicious allegations. We call upon the media to walk with us as we are continuing to rebuild and sustain confidence in this administration. We do not shy away from dealing with any corrupt element within our ranks and we will also not tolerate those manufacturing negative reporting about us. We will not take this matter lying down. We are calling upon the people of this province to support our effort to ensure a better Limpopo.
We confirm that 22 hospitals were awarded to Mphefhedzi Business Enterprise on the basis of accreditation for a period of three years which does not translate into R2.2m expenditure a month. Mphefhedzi Business Enterprise was awarded the contract on the basis of the technical evaluation, the price and preferential point scored.
As the Limpopo Provincial Government we view the allegations of the Supply Chain Management irregularities as very serious and we will conduct an investigation on the matter. If we find any form of irregularity or transgression remedial action will be instituted against the wrongdoers. However, The Provincial Treasury has already been instructed to review the bid processes followed for the award. We are committed to running a transparent and clean administration. We will not tolerate any form of corruption regardless of who is involved in it.
The Department of Health has a standardised specification for laundry services that have been distributed to all the CEO’s of hospitals in the province. Seshego Hospital has deviated from these specifications in the procurement of laundry services on quotation with the current service provider. The department has begun identifying the officials who are responsible for this non-compliance. Appropriate action will be taken against the non-complying officials.
Enquiries:
Mr Phuti Seloba
Cell: 082 807 0796
