The Special Investigating Unit (SIU) has ordered KwaZulu-Natal education MEC Sipho Hlomuka to act against 16 officials implicated in the awarding of an allegedly irregular R2.5m chemical toilets contract.
The SIU said Hlomuka has been ordered by the special tribunal to initiate disciplinary proceedings against officials linked to the awarding and extension of a contract at schools in the Pinetown district.
The order was issued as part of a broader court judgment that also set aside the unlawful contract and ordered the service provider, Hawulethu, to repay all profits gained from the contract.
The SIU said the judgment follows an investigation it conducted into the procurement of 72 chemical toilets for schools in KwaZulu-Natal in June 2020. The investigation found:
- the contract, valued at R2.53m, was awarded without a competitive bidding process, in direct violation of the constitution, the Public Finance Management Act and National Treasury regulations;
- 16 officials from the education department failed to follow mandatory supply chain management processes;
- Hawulethu was contracted and delivered goods before being formally appointed as a service provider and the company overcharged by more than 100%;
- Hawulethu submitted claims for services not rendered and failed to declare conflicts of interest involving its director;
- the contract was improperly extended without following proper procurement procedures; and
- many payments were split to avoid procurement thresholds, constituting a breach of financial management laws.
“The SIU welcomes the significant order by the special tribunal, which goes beyond declaring the contract invalid to actively enforcing consequence management at all levels of state administration. We commend the tribunal for placing the responsibility squarely with the most senior official in the education department, reinforcing accountability where it matters most,” the SIU said, adding the relief ordered by the tribunal includes:
- the forfeiture of all profits derived by Hawulethu from the contract;
- submitting an audited statement of account within 30 days;
- the repayment of all profits plus interest to the education department; and
- payment by Hawulethu of the legal costs of the review application.
The department will not tolerate any form of corruption or negligence that compromises the right of pupils to learn in a well-resourced, functional schooling environment. Every rand allocated to the department must reach our schools, our teachers and ultimately, our pupils.
— Sipho Hlomuka, KZN education MEC
Hlomuka said they noted and fully accepted the findings released by the SIU.
“As the executive authority, I reaffirm our unwavering commitment to transparency, accountability and ethical governance. The SIU’s work plays a critical role in strengthening public confidence, and we welcome all efforts aimed at rooting out maladministration and protecting the integrity of public resources.”
He said the department will cooperate fully with all efforts to recover losses suffered by the state.
“We support the SIU’s legal action to recover irregular profits and to hold service providers accountable for overcharging or failing to deliver services as contracted. It is important to highlight most of our officials conduct their responsibilities with diligence and integrity. However, any breach of public trust, no matter how isolated, undermines our collective mission to deliver quality education to the children of KwaZulu-Natal.“
Hlomuka said he had directed that:
- all supply-chain management processes be strengthened, including mandatory compliance checks and tighter oversight mechanisms;
- internal audit units intensify monitoring, especially in high-risk procurement areas;
- training and capacity-building programmes be expanded so officials understand and uphold the highest standards of public service ethics; and
- quarterly progress reports on all SIU-related matters be submitted to the office of the MEC for monitoring and public transparency.
“The department will not tolerate any form of corruption or negligence that compromises the right of pupils to learn in a well-resourced, functional schooling environment. Every rand allocated to the department must reach our schools, our teachers and ultimately, our pupils.”
TimesLIVE
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