Health department says R183m spent on NHI communication was value for money

The Department of Health on Friday told Parliament’s portfolio committee on health that its communications spend of more than R183 million was value for money.

This comes as the Special Investigating Unit (SIU) and the Auditor-General of South Africa (AGSA) examine allegations about National Health Insurance (NHI) spending.

The department rejected media reports that it diverted money from critical health programmes to NHI marketing, with claims centred on contracts awarded to KMTV Media and Dots Design Agency.

Prof Nicholas Crisp presented the department’s response to the committee in a virtual meeting in Pretoria.

He said Minister of Health Aaron Motsoaledi had referred the matter to the two bodies to settle the questions.

“It is to clear the air once and for all that the minister asked the SIU and AGSA to examine the allegations and report to him on their findings,” Crisp told the committee.

The department said it received media questions on 17 September 2026 and answered them, with supporting documents, on 23 September.

Reports followed alleging irregular appointments, conflicts of interest and advance payments of R52 million.

Was the R183m spend value for money?

The department said it paid more than R183 million in 137 payments. It said it was satisfied that the prices paid were value for money.

To back this up, Crisp pointed to its own price checks.

“NDOH benchmarked some pre-recorded studio interview prices, and they go as high as R900 000 for a single recording – NDOH paid between R35 000 (office-based) and R110 000 (studio-based),” he said.

Was money diverted to NHI marketing?

The department said NHI communication was budgeted within the health systems component of the NHI indirect grant.

It said R30 million of a R115 million business plan was set aside for it in 2025/26. In 2026/27, R39 million of R118.4 million was set aside.

On the claim that GP contracting money was used, Crisp said a separate grant covered that work.

“This is not for purchasing services from GPs as was claimed in the allegation since there is a different grant for that activity,” he said.

The department said some of the 2026/27 money was moved to fund communication and events management for the Lenacapavir launch.

It said R74 million set aside for legal services was not being used because the court ordered a pause.

“R20m was identified for transfer to other needs in the department because it was clear it would not be spent,” the department said of the 2025/26 plan.

How did budget grow from R1 620 to R182m?

The department responded to reports that the tender’s budget grew from R1 620 to R182 million.

Crisp said the R1 620 was an hourly rate, not the value of the contract.

“The R1 620 figure is the hourly rate quoted in the bid document for a consulting service on communication (KMTV),” he said.

According to the department, KMTV could charge that rate for work it did itself.

It could add a 10% management fee on services it bought from third parties.

Dots was appointed for events management at R540 per person per hour. Both appointments were made on 31 May 2024.

The department said the reported jump from R146 million to R182 million within a week came from adding Dots’ share.

“The R146m at the beginning of the week which became R182m by the end of the week was the addition of the Dots portion of the contract – event management,” Crisp said.

How were payments made and checked?

On the claim of advance payments, the department explained how orders were placed in its Logis procurement system.

“The procurement system (Logis) requires that the number of anticipated purchase orders (POs) are loaded into the system; then the commissioning component creates a PO as work is commissioned,” the department said.

Crisp said payment needed more than an order.

“Payment requires a match between the PO and the invoice, which is checked and signed off when the work is done and duly approved by the receiving end user,” he said.

The department claimed it held date-stamped pictures of every billboard and SABC advert schedules as evidence of work done.

Dots Design Agency

The department noted that Dots submitted a Sars tax clearance certificate with its bid. It said the position changed later.

“When a purchase order was attempted for Dots Design Agency in April 2026, the system indicated that the company was no longer tax compliant and the request was denied,” Crisp told the committee.

He said the department received new questions on 7 October, with a deadline of 9 October.

According to Crisp, the questions cited the Companies and Intellectual Property Commission (CIPC) as showing that Dots entered business rescue in April 2023 and faced a final liquidation order on 22 August 2024.

One question put to the department asked: “Was the NDOH aware that it was doing business with an insolvent company, under liquidation and that that company was legally not allowed to trade once it went into liquidation and without permission from the Master’s office to trade?”

The health department said it had passed the questions on for investigation.

“The department has referred these questions to those who were involved in the tender to establish what they knew and has referred these same questions to the SIU and AGSA for consideration in their investigations,” Crisp said.

Conflict-of-interest claims

The department said questions were raised about the role of its spokesperson, Foster Mohale, on the tender committees.

It said committee lists showed he was a member of the first tender’s committee.

For the second, he was vice chairperson under chairperson Mr D Demana.

The department also addressed claims about the minister’s links to KMTV’s owner, Khathu Mamaila, citing a 30 September statement.

“The minister wants to make it categorically clear that both he and the deputy minister know Mr Mamaila very well for the past 32 years,” the statement said.

“There is not a chance of not knowing him because he was the head of the Sowetan bureau in Polokwane, succeeding the veteran journalist Mr Mathata Tsedu, in 1994.”

On Dots, the department was direct. “The minister does not know Mr Mosa Likobo of Dots Design Agency and has never met him,” Crisp said.

Auditor-general’s findings

According to the department the bid and services were audited in the 2025/26 year.

“This bid and the services were audited in the 2025/26 year by the Auditor General of South Africa (AGSA),” Crisp said.

He said the audit findings, including the tender’s structure, were discussed with management.

“The AGSA was satisfied with all responses and with the department’s actions being taken to tighten the service level agreements (SLAs),” the department said.