Tribunal voids KZN schools’ R2.5m toilet contract

Contractor ordered to repay profits and cover legal costs

ABANDONED: The two blocks of toilets at Webbstown High School in KZN are no longer usable Photo: Xolani Dlamini
The two blocks of toilets at Webbstown High School in KZN are no longer usable

KwaZulu-Natal’s education MEC has been ordered to discipline 16 officials implicated in the irregular awarding and extension of a R2.5m contract for chemical toilets at schools, following a damning judgement by the special tribunal.

The order stems from an investigation into a June 2020 procurement process for 72 mobile toilets, which uncovered widespread violations of supply chain rules, financial management laws and constitutional procurement requirements.

The SIU investigation revealed that 16 officials from the department of education failed to follow mandatory supply chain management processes.

—  Kaizer Kganyago, SIU spokesperson

Special Investigating Unit (SIU) spokesperson Kaizer Kganyago said the tribunal’s ruling not only invalidates the contract but also enforces consequence management by ordering the MEC to act against all involved officials.

Kganyago said investigators found the contract was awarded to Hawulethu (Pty) Ltd without any competitive bidding process.

“The SIU investigation revealed that 16 officials from the department of education failed to follow mandatory supply chain management processes. The investigation further revealed that Hawulethu (Pty) Ltd was contacted and delivered goods before being formally appointed as a service provider, and that the company overcharged by more than 100 percent,” he said.

The officials facing disciplinary action include acting directors, deputy directors, specialists and clerks, all of whom played roles in nominating, evaluating, approving or extending the unlawful procurement.

Kganyago added that multiple payments were deliberately split to bypass authorised thresholds. He said their probe also established that Hawulethu submitted claims for services not rendered and failed to declare conflicts of interest involving its director.

“The investigation confirmed that the contract was improperly extended without following proper procurement procedures and that multiple payments were split to avoid procurement thresholds, constituting a breach of financial management laws,” said Kganyago.

The tribunal ordered that the company repay all profits earned from the deal, submit an audited statement of its accounts within 30 days, and repay the money with interest to the provincial education department. Hawulethu has also been ordered to cover the legal costs of the review application.

Kganyago said the SIU welcomes the judgement.

“We commend the tribunal for placing this responsibility with the most senior official, reinforcing accountability where it matters most,” he said.

The investigation formed part of the SIU’s broader PPE-corruption probe, authorised by President Cyril Ramaphosa under Proclamation R23 of 2020.

Sowetan


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