ARV Tender Turmoil Raises Red Flags

Health Minister Dr Aaron Motsoaledi has sought to reassure Parliament that disruptions linked to the national antiretroviral (ARV) tender will not derail South Africa’s HIV treatment programme, despite mounting concern over the financial stability of suppliers and a controversial takeover arrangement.

The minister briefed MPs after it emerged that two companies awarded contracts to supply ARVs applied for business rescue in 2025. One of those suppliers is now linked to a proposed takeover by Hetero, an India-based pharmaceutical company that has also taken the Department of Health to court over the same tender amid suspicions of price-fixing.

Parliamentarians from across parties questioned whether the department had done enough due diligence before awarding contracts, warning that any weakness in the supply chain could place patients at risk. The debate has been sharpened by lingering mistrust following the department’s widely criticised Digital Vibes tender saga, which has made MPs wary of decisions that appear rushed or insufficiently scrutinised.

Barrs Pharmaceuticals and Innovata are among seven companies appointed to supply ARVs. MPs indicated discomfort that a supplier under business rescue could shift ownership or control while remaining tied to a key public-health contract — especially when the incoming entity has been involved in litigation linked to that very tender.

Motsoaledi told the committee he is not directly involved in tender processes and said the department does not assess the financial statements of companies bidding for contracts. “We cannot examine balance sheets because, for us to do so, we do not have any skill whatsoever,” he said.

However, Economic Freedom Fighters MP Naledi Chirwa argued that the minister’s position was misleading, saying the Public Finance Management Act requires the state to satisfy itself that bidders have the financial capacity to deliver. “There are too many red flags for us not to be suspicious with what is happening with this ARV tender,” she said.

Health department officials responded that it is the role of National Treasury and the Department of Trade to flag risk indicators in companies’ financial standing and corporate status.

Despite the friction, Motsoaledi insisted that medicine availability at state facilities has not been affected. He told MPs that clinics typically maintain a three-month buffer stock, which should cushion patients from short-term shocks while the tender issues are addressed.

The committee’s scrutiny is expected to continue, with MPs demanding clearer accountability on vetting processes, supplier stability, and safeguards to protect uninterrupted ARV access.