The Economic Freedom Fighters (EFF) has urged the Special Investigating Unit (SIU) to examine South Africa ARV tender irregularities in a R15 billion contract for antiretroviral drugs. Two companies, awarded parts of the tender, entered business rescue shortly after, raising questions about procurement processes and ownership ties. This development highlights ongoing concerns in the health sector, where past scandals have eroded public trust. Parliament's health committee recently scrutinized the deal, with officials assuring no disruption to patient care.

EFF Highlights Tender Flaws

The EFF points to South Africa ARV tender irregularities, including the award to Barrs Pharmaceuticals Industries and Innovata Pharmaceuticals, both owned by Avacare Health. These firms entered business rescue in December 2025, just as contracts began. A R1 price difference on products between the companies fuels suspicions of improper practices, echoing previous tenders cancelled over price collusion.

Moreover, the party calls for restarting the tender to ensure fairness. EFF spokesperson Sinawo Thambo described the health department as a "feeding trough" for corrupt entities, referencing scandals like Digital Vibes and Covid-19 PPE. Thambo urged action against negligent officials.

Broader Implications for Health Procurement

South Africa runs the world's largest ARV program, treating about eight million people, with the tender valued at R15.5 billion in some reports. The department claims 70% of ARVs come from local manufacturers, but committee members estimate 70% are imported, prompting demands for batch certificates to verify origins. This discrepancy underscores challenges in building domestic capacity.

The EFF has advocated for a state pharmaceutical company since 2014 to reduce reliance on private suppliers and prevent exploitation. Without it, Thambo argues, public health remains vulnerable. Previous processes halted tenders over low prices and capacity issues with firms like Hetero.

Health Minister Aaron Motsoaledi assured parliament on 18 February 2026 that patients face no ARV shortages, as the department monitors supplies closely. He noted the department does not assess financial stability during tenders but welcomes an SIU probe if the committee recommends one. EFF MP Naledi Chirwa pushed for the investigation, citing "too many red flags."

The EFF also called on the Competition Commission to review the deal. Committee chairperson Tshilidzi Muthambi emphasized ensuring tenders benefit genuine local suppliers. Newsroom contacted the Department of Health on 19 February 2026 for further comment but received no response by publication time. Analysts suggest verifying manufacturing claims could strengthen future procurements, though funding for state capacity remains key.