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<\/figure>\n\n\n\nThe visit was attended by \u201csenior government ministers [and] heads of departments\u201d, including former Minister of Communications Mondli Gungubele. And led to the signing of a memorandum of understanding (MOU) between YahSat and the South African government.<\/p>\n\n\n\n
According to internal documents from the NDOH, seen by amaBhungane, Brainwave was tax non-compliant at the time of its appointment. The AG\u2019s report states that there was no business case for the contract in the first place and that some of the health facilities listed in the NDOH tender had already been serviced by the contract under the DCDT.<\/p>\n\n\n\n
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<\/figure>\n\n\n\nIt appears that until last year the NDOH had obtained internet connectivity services for 388 health facilities in terms of an \u201cinformal agreement\u201d between the DCDT and YahClick \u2013 a subsidiary of YahSat.<\/p>\n\n\n\n
According to the AG, this procurement was also not above board.<\/p>\n\n\n\n
It was under this agreement with the DCDT that Brainwave attempted to instead invoice the NDOH for R34.9 million (seemingly on behalf of YahClick), although no formal contract existed at that stage between NDOH and Brainwave.<\/p>\n\n\n\n
A senior Department of Health official, who spoke to amaBhungane on condition of anonymity for fear of reprisal, said they had reported the matter to the Hawks this year.<\/p>\n\n\n\n
Brigadier Thandi Mbambo, spokesperson for the Hawks, said that they are assessing this information and working with \u201crelevant stakeholders so as to determine the angle of the investigation\u201d.<\/p>\n\n\n\n
Irregular procurement<\/strong><\/p>\n\n\n\n According to the AG\u2019s final management report, the department appointed Brainwave (as well as another company named ABT Telecoms) against National Treasury regulations, the State Information Technology Agency (SITA) Act and the Public Finance Management Act (PFMA).<\/p>\n\n\n\n According to National Treasury regulations, government departments are required to procure certain IT and telecommunication services through SITA. The NDOH, however, ignored this and followed its own tender process.<\/p>\n\n\n\n Everything the NDOH has and will spend on the subsequent contract will now potentially be declared irregular expenditure, the AG said.<\/p>\n\n\n\n The department said that it had spent R85 million on the contract so far. <\/p>\n\n\n\n A curious timeline of events shows that the NDOH seemingly pushed through the deal with Brainwave in 2023, after the department, through its director general Dr Sandile Buthelezi, failed to acquire National Treasury\u2019s approval for payment of the impromptu R34.9 million invoice in 2022.<\/p>\n\n\n\n The NDOH had originally tasked SITA with procuring these services in October 2022, but when SITA recommended the use of its own internal panel of service providers to fast-track the process, the department opted to procure the services itself.<\/p>\n\n\n\n This was against legislation and regulations, the AG report notes.<\/p>\n\n\n\n In response, the NDOH said it disagreed with the AG\u2019s findings, claiming that using SITA was not mandatory in this case and that the agency had caused delays.<\/p>\n\n\n\n The AG report was scathing, arguing that the NDOH\u2019s handling of the tender process and contract displayed a lack of planning, governance structure and contract management, as well as the \u201clack of a business case for the implementation of the direct internet access\u201d.<\/p>\n\n\n\n This, the AG report said, was evident in the department\u2019s requests to SITA, with one letter requesting services for 388 locations for 24 months, another letter requesting the same for 241 locations for three years and the final tender advertisement asking for 800 locations for three years.<\/p>\n\n\n\n \u201cWe are unable to reconcile the request for 352 sites by the DG (Noted on the letter) to the 388 sites referred to above, including the 800 sites mentioned on the NDoH 10- 2023\/24 tender,\u201d the AG report notes.<\/p>\n\n\n\n The increase in the number of sites represented a scope change and would mean a totally new tender.<\/p>\n\n\n\n \u201cWe cannot therefore use the tasking request as the same procurement process for the 800 sites. The 800 sites are a different procurement process from the tasking request to SITA,\u201d the AG report states.<\/p>\n\n\n\n The report adds that \u201cbased on the increased number of sites in NDOH 10-2023\/24, it appears that management realised that the tasking request to SITA did not cover all the sites in the health sector.<\/p>\n\n\n\n \u201cGoing back to SITA with a different number of sites would mean that the process should start from scratch, which management wanted to avoid. This may indicate that there was no proper planning\/analysis of the department requirements before a request was initially sent to the SITA.\u201d<\/p>\n\n\n\n In other words, the department\u2019s complaint that SITA was delaying matters really stemmed from the department itself shifting the goalposts.<\/p>\n\n\n\n \u201cBased on the above the finding will remain as a material non-compliance to section 7(3) of the SITA Act, National Treasury regulation 16A6.3(e) and paragraph 3.3 of Practice Note 5 of 2009\/10. Amounts spent and still to be spent on the [contract] would potentially result in irregular expenditure being incurred,\u201d the AG report notes.<\/p>\n\n\n\n The failed invoice<\/strong><\/p>\n\n\n\n As mentioned, the scramble to appoint Brainwave seemingly followed the NDOH\u2019s failure to obtain authority to pay an invoice for R34.9-million. The invoice came from Brainwave, despite the work having been done by YahClick under the DCDT.<\/p>\n\n\n\n Although amaBhungane sought clarity from the NDOH about the invoice, the department failed to provide any.<\/p>\n\n\n\n However, documents show that the department, through Buthelezi, tried to push the payment through a year before appointing Brainwave on its own contract. It is unclear whether that payment was eventually authorised.<\/p>\n\n\n\n In August 2022, senior health department officials wrote to Buthelezi requesting him to sign off on a letter asking National Treasury for permission to pay R34.9 million \u2013 the same amount Brainwave invoiced. The letter, however, only mentions YahClick.<\/p>\n\n\n\n While a letter to National Treasury from Buthelezi was subsequently drafted, National Treasury told amaBhungane it had no record of the communication.<\/p>\n\n\n\n The letter from Buthelezi asked Treasury for permission to pay the invoice for services rendered from June 2020 to August 2022, and for an extension of the contract for one year.<\/p>\n\n\n\n According to the letter, the DCDT had continued with the project beyond its deadline and requested the service provider \u201cnot to switch off services due to non-payments” before Brainwave handed its invoice to the NDOH.<\/p>\n\n\n\n Connections<\/strong><\/p>\n\n\n\n Apart from its relationship with YahSat, Brainwave also seems to have indirect political ties with ATM, the ANC breakaway associated with former Free State premier Ace Magashule.<\/p>\n\n\n\n Brainwave is directed by 28-year-old Nkanyiso Kevin Khanyile and 25-year-old Sanele Tumelo Khanyile. Their father, Thamsanqa Khanyile, is the executive chairperson of the company.<\/p>\n\n\n\n Brainwave\u2019s address on the Companies and Intellectual Property Commission (CIPC) is registered in the name of Thamsanqa and his wife, Vuyisile Tebogo Khanyile.<\/p>\n\n\n\n Vuyisile Khanyile is a member of the ATM while Thamsanqa is a senior member of the 12 Apostles Church in Christ, which is closely aligned with the party according to media reports.<\/p>\n\n\n\n Brainwave is an official public sector partner of YahSat, which is also known as Al Yah Satellite Communications Company and is an Abu Dhabi Securities Exchange listed company. YahSat is in turn a subsidiary of Mubadala Investment Company \u2013 a state-owned global investment and asset management firm that serves as one of Abu Dhabi\u2019s sovereign wealth funds.<\/p>\n\n\n\n The aforementioned delegation of government officials who visited YahSat in Abu Dhabi in May had their visit facilitated by Brainwave in order \u201cto discuss closer cooperation in the satellite communications sector\u201d, according to a statement by the company.<\/p>\n\n\n\n Following the visit, YahSat\u2019s chief commercial officer, Sulaiman Al Ali and DCDT DG Nonkqubela Jordan-Dyan signed a memorandum of understanding between Yahsat and the South African government later that month.<\/p>\n\n\n\n \u201cThe agreement focuses on a broad range of areas for collaboration including partnering on satellite and ICT-related services, satellite broadband connectivity, Internet of Things, geospatial applications, High-Altitude Pseudo Satellites (HAPS), and Earth Observation Satellites,\u201d YahSat said in a press statement at the time that is now deleted.<\/p>\n\n\n\n \u201cIt also creates a framework for exploring the potential of building ground stations in South Africa to operate satellites, collaboration on manufacturing of devices and antennae, skills exchange and investment.\u201d<\/p>\n\n\n\n Right of reply<\/strong><\/p>\n\n\n\n NDOH spokesperson Foster Mohale told amaBhungane that they had approached SITA after the contract with the DCDT expired and internet services were discontinued due to the project not being handed over to the department.<\/p>\n\n\n\n \u201cThe Department of Health approached SITA to continue with the provision of services to avoid disruptions or a gap, unfortunately the process took longer than anticipated. This resulted in health facilities experiencing downtime due to service providers terminating the internet services and that prompted the department to go out on its own tender,\u201d Mohale said.<\/p>\n\n\n\n He added that while the NDOH had appointed Brainwave and ABT Telecoms, it \u201chas no contract with the subcontractors of the two companies\u201d. This means there is no formal agreement between YahSat as a subcontractor and the NDOH.<\/p>\n\n\n\n \u201cIt is not correct to suggest that the department had specific service provider in mind prior to the appointment and still undertook normal procurement process,\u201d Mohale said.<\/p>\n\n\n\n On the irregular expenditure, Mohale said that the department could not yet confirm that the full contract amount \u2013 which, he said, was R153 200 000 \u2013 would be determined as irregular expenditure.<\/p>\n\n\n\n While the AG said the department included locations in its tender that had already been serviced, Mohale said the new service provider upgraded this technology because it \u201cwas not compatible with the newly installed broadband solution\/ technology that was powered by the facilities electrical supply and did not run independently on the solar power\u201d.<\/p>\n\n\n\n \u201cThe Department has viewing rights on the portal for monitoring uptime\/downtime and performance of the solution as part of ongoing monitoring of the implementation of the contract,\u201d Mohale added.<\/p>\n\n\n\n He also noted that the 388 sites from the previous project did not represent the total number of public health facilities and that the department added more locations in its tender \u201cto ensure that no facilities are left behind\u201d.<\/p>\n\n\n\n \u201cThe department dismisses any unsubstantiated allegations which suggest that the contract was irregularly awarded, or the unethical behaviour of department officials involved, anyone with evidence of maladministration is urged approach the relevant independent anti-corruption agencies for investigation. The Department remains open for scrutiny on this and any other matter,\u201d Mohale said.<\/p>\n\n\n\n Mashatile\u2019s spokesperson Keith Khoza did not respond to amaBhungane\u2019s request for comment on how Mashatile was acquainted with Thamsanqa Khanyile, how he became aware of YahSat and what due process went into the signing of the MOU. Instead, Khoza responded with this article<\/a>.<\/p>\n\n\n\n Neither Brainwave, YahSat, the DCDT or ATM responded to amaBhungane\u2019s requests for comment.<\/p>\n","protected":false},"excerpt":{"rendered":" The National Department of Health (NDOH) dodged legislation and regulations to grant a little-known company, Brainwave Projects SA, a R122-million contract. This was after Brainwave tried unsuccessfully to bill the department for earlier work done under its foreign technology partner…<\/p>\n","protected":false},"author":22,"featured_media":31946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-31886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stories"],"acf":[],"_links":{"self":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/31886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/comments?post=31886"}],"version-history":[{"count":2,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/31886\/revisions"}],"predecessor-version":[{"id":32021,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/31886\/revisions\/32021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/media\/31946"}],"wp:attachment":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/media?parent=31886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/categories?post=31886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/tags?post=31886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/further.co.za\/amabwp\/wp-content\/uploads\/2024\/10\/POSITION-3-1-1024x689.jpg\")
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