Money for HIV, tuberculosis, and child nutrition used to pay for R182 million Department of Health communication contracts

The Department of Health has come under scrutiny over reports that it spent R182 million on communication contracts with two separate agencies.

R146 million was paid to KMTV Media, directed by veteran journalist Khathu Mamaila, with a further R35 million being paid to Dots Design Agency.

Recent media reports indicate that the contracts were inflated significantly from their original costs, with the KMTV contract initially set at R1,620.

This ballooning reportedly drew funds away from at least eight departmental programmes, including critical treatments for HIV/AIDS, tuberculosis, and child malnutrition.

The Minister of Health, Dr Aaron Motsoaledi, has referred the matter to the Special Investigating Unit (SIU), the Auditor-General, and the Public Protector.

Member of Parliament Kgosi Letlape said the matter had raised concerns around financial oversight within the Department of Health.

“If the Minister was unaware that contracts originating at such small values had grown into an expenditure of R182 million, questions must be asked about how closely his Department’s finances are being monitored,” Letlape said.

“If he was aware, both he and the Director-General, as well as the CFO, must account for why such expenditure was allowed to continue.”

Letlape said this was especially important at a time when public resources are increasingly being committed towards the country’s National Health Insurance (NHI).

He said the government could not expect South Africans to allocate more resources to NHI when questions about existing healthcare funding remained unanswered.

While reports indicated that the contracts were related to NHI advertising, Department of Health spokesperson Foster Mohale said it also covered broader health communication campaigns.

He said this included advertisements to promote the prevention and treatment of malaria, cancer, smoking, alcohol abuse, and diabetes, among others.

Mohale also dismissed the figures reported as the initial contract costs as implausible, saying the state did not issue tenders for such small amounts.

While both Motsoaledi and Deputy Minister of Health Dr Joe Phaahla admitted to having known Khathu Mamaila for years, they denied any improper business dealings.

“This is not the first time allegations of irregular procurement have emerged from the Department of Health,” Letlape said.

“The Digital Vibes scandal during the Covid-19 pandemic resulted in extensive SIU findings relating to irregularities, fruitless and wasteful expenditure, fraud, fronting, and the misuse of public funds.”

Letlape called on the SIU, the Auditor-General, and the Public Protector to conduct a thorough investigation into the ballooning contract expenditure.

Where wrongdoing is found, he said, those deemed responsible must be held accountable, and all spent funds must be recovered.