The Eastern Cape health department has denied claims it paid a dead man close to R1m after his company and name appeared on the list of companies awarded work in the province.

Odwa Matshaya’s friends and relatives spoke to Daily Dispatch last week, saying they were shocked to see his name on the list  as he had died two years ago. A relative  said Matshaya’s 2KS Construction company was on the list of those which had benefited.

However, on Sunday the health department said  the director of 2KS Construction was  Nceba Kwakweni, not Matshaya.

“The Eastern Cape department of health wishes to state categorically that the newspaper article contains falsehoods that border on absurdity. The director of 2KS Construction is not the person listed in the article. The director is alive and he is Nceba Kwakweni,” said department spokesperson Siyanda Manana.

Called for comment on Sunday, Kwakweni opted not to speak to the Dispatch.

“Let’s leave this. I am not going to comment,” he said.

Asked why Matshaya’s name appeared on the list of companies which benefited, Manana said they will furnish a response on Monday.

Last week Daily Dispatch spoke to a health department employee who alleged ghost companies were receiving work, and that the information of some companies was used but payments were made to others.

“Employees are encouraged to report any wrongdoing to the department or to law enforcement agencies so  action can be taken,” said Manana.

Over the weekend the Dispatch fielded a number of calls from company directors who complained that their companies also appeared on the list, but they had not been given work. One director sent a text message to complain that his company had received nothing but appeared as a company the provincial department had paid.

Another businessman, Mdu Madikane, complained that his company had not received any work but appeared as a company that benefited from Covid-19 provincial tenders.

Manana said the department's plan was to award many bidders.

“In relation to health officials who are raising concerns, the department wishes to state that its strategy was to award multiple bidders, to manage the risk of supply and develop a number of suppliers.”

He said the department had to negotiate prices down to the rates published by the national treasury.

“The strategy is fair, inclusive and transparent, and is available for review.”

Manana said if companies were asked to quote on certain items but did not receive work it was because the supply chain process was subject to compliance checks and competition with other bidders.

“A quotation does not guarantee an award,” he said.

He said in relation to Madikane’s company, Buhlebezwe, it was awarded an order for R1.13m to supply 10,000 isolation gowns as part of a deviation prior to the conclusion of the bid process.

Buhlebezwe has not delivered and therefore has not been paid.

“No other company in which he is a director was awarded any other bid. The same company, Buhlebezwe, arrived after the closing time for personal protective equipment (PPE) bids that were managed at Amathole district, and the department refused to let them in. They were aggrieved and appealed that decision.”

Manana said Buhlebezwe had responded to a tender for gowns and coveralls which had resulted in negotiations with 10  companies and the awarding of purchase orders.

“Eight of the companies delivered . Two still need to deliver the items, and this includes Buhlebezwe.

“In terms of masks, the department issued a letter of award to Associate Logistics JV,  of which Buhlebezwe is part. The KN95 mask purchase has been awarded to nine companies, and four companies have been issued purchase orders and have delivered. The process is ongoing,” said Manana.

Madikane on Sunday said he was communicating with department officials about the bids he submitted.

“They have failed to answer questions on the other bid I queried. I can confirm  they did contact my company as one tender was rejected. I am not aware I had to deliver on the others. These are news,” he said.

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