Sixteen senior officials face action after the SIU uncovers extensive breaches in a R2.5 million school toilet contract.
KwaZulu-Natal education MEC Sipho Hlomuka has been ordered by the Special Investigating Unit’s (SIU) Special Tribunal to act against 16 senior departmental officials embroiled in the irregular and unlawful awarding of a R2.5 million chemical toilets contract for schools.
The order forms part of a wider judgment that not only set aside the contract awarded to Hawulethu in June 2020, but also directed the company to repay all profits earned from the deal.
The tribunal, a specialised court established under the SIU Act to speedily recoup public funds lost to corruption, fraud and illicit money flows, also ordered Hawulethu to submit an audited statement of accounts within 30 days and reimburse the department, with interest, as well as legal costs of the review application.
Kaizer Kganyago, spokesperson for the graft-busting unit, said they had uncovered largescale procurement breaches in the matter, welcoming the ruling as reinforcing “accountability where it matters most”, by placing responsibility in the hands of the MEC.
According to the ruling, the officials range from top management in finance, supply chain and administrative roles.
Kganyago said that their alleged involvement ranges from improperly approving extensions of the contract, authorising work before lawful appointment, signing off on payment orders and participating in flawed evaluation and adjudication processes.
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“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 was contracted and delivered goods before being formally appointed as a service provider, and that the company overcharged by more than 100%,” Kganyago said.
The officials, including chief directors, deputy directors-general, educational specialists and clerks, are accused of breaching mandatory supply chain management procedures.
The judgment follows an SIU probe into the procurement of 72 chemical toilets for schools in KwaZulu-Natal in June 2020.
It revealed that the R2.538 million contract was awarded without any competitive bidding process, in violation of Section 217 of the constitution, the Public Finance Management Act and Treasury regulations.
The graft-busting unit also found evidence of overcharging, claims for services not rendered, undisclosed conflicts of interest and the improper splitting of payments to bypass procurement thresholds.
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Additionally, officials unlawfully extended the contract without following prescribed supply chain rules.
President Cyril Ramaphosa ordered the probe under Proclamation R23 of 2020, empowering the unit to investigate allegations of corruption, maladministration and irregular payments related to Covid personal protective equipment-era procurement.
The unit may also institute civil litigation to recover losses and must refer any criminal evidence to the National Prosecuting Authority.
Kganyago said that the SIU would continue to pursue corruption and maladministration in state institutions to protect public resources.
“The SIU is empowered to institute civil action in the high court or a special tribunal to address any wrongdoing uncovered during investigations related to corruption, fraud, or maladministration,” Kganyago added.
