MBOMBELA – In a dramatic turn of events, the Department of Health has suspended the R180 million circumcision contract awarded to a private company in the province, following reports of irregularities.

Mpumalanga News has since established that this multi-million contract was suspended about two weeks ago by the department, which has instituted an investigations into reports of alleged irregularities into the awarding of the tender.

The departmental spokesman, Mr Ronny Masilela confirmed to this paper that an investigation is underway and is expected to have been concluded by the end of November.

“The departmental internal audit, in collaboration with the internal audit from treasury, has been appointed to conduct the investigation. The investigation will be mainly to investigate the allegations if improper or irregular supply chain management processes in relation to the awarding of a Voluntary Male Medical Circumcision (VMMC) services contract,” confirmed Masilela.

This move by the department comes shortly after the Corruption Watch alleged various acts of irregularities in the awarding of the tender.

According to Corruption Watch, in June this year, the company received a one-year contract from the department to circumcise 260 000 boys and men in the province, at a cost of R700 per circumcision. If all 260 000 circumcisions were performed, the contract would be worth in excess of R180 million.

By law, all contracts over R500 000 are to be awarded through a public competitive bidding process. In the case of Mkhago, Corruption Watch found that the company presented a business proposal and there was no public tender for the contract as required by law.

Masilela said that the outcome will be reported to the department of public services and administration and the Public Service Commission.

He said the VMMC programme will not suffer as the department in partnership with its five NGOs will continue rolling out the programme in the province.