Black business cries foul over vaccine exclusion

Johannesburg – As the country prepares to receive the first batch of Covid-19 vaccines tomorrow, black business has cried foul that it is being excluded from contracts to transport and store the jabs.

The vaccines will undergo a 10-to-14-day technical process of quarantine, quality assurance and reconciliation to ensure safe distribution before being transported to all the provinces.

The National African Federated Chamber of Commerce and Industry (Nafcoc) and the South African United Business Confederation (SAUBC) expressed concern over the process to award contracts for transport, security and storage of the vaccines.


This is after it emerged that the government had appointed Imperial Health Services, Biovac Institute, DSV and United Pharmaceutical Distributors for the rollout of the vaccines on a shortterm basis.

The SAUBC said it was disappointed by the process followed to appoint the companies.

“It is also clear that SMMEs and in particular black businesses have been totally ignored to participate in the vaccine value chain,” SAUBC president George Sebulela said.

“We expect government to lead by example in ensuring that procurement policies are adhered to but sadly it is not the case. Instead, there is always a reason to find the loop hole not to adhere. We thought the last procurement of PPE [protective personal equipment] was a lesson to government not to repeat the same mistake. We are therefore shocked that emergency procurement is still the order of the day.”

In a letter to Corruption Watch, National Treasury director- general Dondo Mogajane said the Department of Health had requested approval to issue a closed bid to the four service providers that specialise in cold storage and distribution of medicines for a period of six months.

“The motivation provided for the deviation was based on urgency in order to procure vaccines to support frontline healthcare workers in the short term [three months] and the urgency required to contract for storage and distribution of vaccines procured through the Covax Facility,” he said.


Nafcoc said it understood the urgency of providing vaccines, but transparency was key in companies affiliated to the organisation supporting government’s initiatives.

The organisation wanted its members, affiliates and associates to bid for the transport, security and storage of the vaccines.

“Nafcoc can still have an opportunity to participate through sub-contracting through Imperial Logistics/ Health Services. “In fact, our members, afiliiates and associates have capacity to provide cold storage, transport and security,” said Nafcoc treasurer-general Boetie Letsoela.

“We can provide over 500 cold storage facilities and transportation country wide,” he added.

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