Dean Macpherson defends PwC appointment to probe R800m oxygen plant scandal
Public Works and Infrastructure Minister Dean Macpherson says PwC was appointed to probe the R800 million IDT oxygen plant scandal due to the case’s sensitivity, complexity, and the firm’s investigative credibility.
Image: Henk Kruger / Independent Newspapers
Public Works and Infrastructure Minister Dean Macpherson has defended the appointment of PricewaterhouseCoopers (PwC) to investigate corruption allegations in the R800 million oxygen plant project, saying the scale and seriousness of the case required a credible and experienced service provider.
Responding to questions from MPs during the Economic Cluster briefin, Macpherson said the firm was appointed due to “serious administration fraud and corruption” related to the rollout of pressure swing adsorption (PSA) oxygen plants managed by the Independent Development Trust (IDT).
“On the 23rd of July 2025, the Department appointed PwC as a suitable service provider to conduct a comprehensive investigation into the alleged serious administration fraud and corruption with regards to the attenders appointed by the IDT for the rollout of the PSA oxygen plants,” he told Parliament.
The question was posed by ANC MP Noluthando Makasi, who asked why PwC was selected and which other companies were considered for the forensic work.
Macpherson said the Department received three quotations, but only PwC met the standards required for such a sensitive and complex investigation. The other firms considered but not selected were Analytical Forensic Investigative Services and Abacus Financial Crime Advisory.
“The Department chose PwC for their experience, capacity and reputation in handling such projects due to the technical requirements and sensitivity involved,'' he said.
ANC MP Sipho Mahlangu, standing in for Makasi, asked whether the Preferential Procurement Policy Framework Act was followed. Macpherson confirmed: “Yes.”
DA MP Edwin Bath pressed Macpherson on why the suspended CEO of the Independent Development Trust (IDT), Tebogo Malaka, had not been arrested yet, despite allegations she bribed journalist Pieter-Louis Myburgh. He also accused parties including the ANC, ActionSA, EFF, and MKP of remaining silent on the scandal.
This follows a Daily Maverick exposé, which published video evidence allegedly showing suspended Malaka and IDT spokesperson Phasha Makgolane offering R60,000 in cash to investigative journalist Myburgh. The bribe was reportedly intended to halt an exposé the publication was working on.
Macpherson responded: “As the Executive Authority, I do not conduct disciplinary cases against CEOs. That is currently with the board. There was a clear intent to bribe Mr Pieter-Louis Myburgh., and I for one can't explain why the acting CEO still hasn't been arrested.”
He added that the question was more appropriate for the suspended Minister of Police Senzo Mchunu, or the acting Police Minister, Firoz Cachalia.
“It also creates worrying questions in the public's mind as to why someone is able to allegedly bribe someone and four or five weeks later they still haven't been arrested, '' said Macpherson.
RISE Mzansi MP Makashule Gana, standing in for Songezo Zibi, asked whether PwC’s bid was the cheapest. Macpherson clarified that while PwC was not the lowest bidder, Abacus was R61,000 cheaper, they were still appointed due to the complexity of the case and supported via deviation under DPWI Circular 229 of 2023/2024.
“There was a variance of R61,000 between PwC and Abacus, there was a variance of R190,000 with Analytical Services and PwC. However the deviation submission was motivated for the appointment of PwC, and this was supported by the Acting Director-General for Supply Chain Management and approved by the Director-General.”
FF Plus MP Phillip van Staden raised media allegations that some MPs may have received payments from the IDT. Macpherson acknowledged the claims but said no evidence had yet emerged.
“If Miss Malaka was prepared to bribe a journalist, I think she would probably be prepared to bribe anyone. We did try to get to the bottom of that allegation. We haven’t found any evidence to support it. But who knows? Maybe once Miss Malaka is eventually arrested, she might try and cut a deal.
“So I don’t think that we’ve seen the end of the story with regards to who received what. And so, you know, once we heard that allegation, we did try and pursue it, but we weren’t able to get any further information from the whistleblower. So it remains an allegation at this point,'' he said.
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