Special Tribunal Condemns KZN Education Officials Over Corruption

Daftar Isi

Unlawful Contract and Mismanagement Exposed

A recent ruling by the Special Tribunal has revealed serious misconduct in a R2.5-million contract awarded to a company for the supply of chemical toilets to schools in KwaZulu-Natal. The company, Huluwethu (Pty) Ltd, has been ordered to repay the profits it made from the deal, while 16 officials involved in the process face disciplinary action.

The contract was initially granted in June 2020, when schools reopened after the first lockdown due to the COVID-19 pandemic. The provincial education department had instructed district directors to procure mobile toilets for one month, with a maximum cost of R3,000 per unit. However, the procurement process was not followed properly, leading to allegations of collusion, price fixing, and irregular expenditure.

According to the Special Investigating Unit (SIU), Huluwethu admitted to receiving calls from department officials before the official invitation to bid was sent on 10 June 2020. This raised concerns about improper influence and unfair competition. The company was then appointed to deliver 72 toilets to 11 different schools, but the SIU alleged that it charged more than a 100% markup and claimed for services and goods that were never provided.

The SIU also highlighted that the necessary supply chain management documents were completed after the toilets were delivered, which is a violation of standard procedures. Additionally, the company was paid for servicing the toilets during school holidays and for rent and servicing during specific periods, even though no such services were rendered.

The judge, Chantel Fortuin, emphasized that the actions taken by the officials were intentional and pointed to a fraudulent scheme. One example cited was the splitting of payments to the company to bypass financial thresholds. She noted that the procurement process was not followed as required, making the contract unlawful and the expenditure irregular.

Collusion and Conflict of Interest

The director of Huluwethu, Pat Lebenya, failed to declare her interest in another company that had previously contracted with the department. This conflict of interest should have disqualified the company from the bid. Furthermore, she backdated the bid documents, which was described as "unlawful and dishonest."

Judge Fortuin stressed that following proper procurement processes is a constitutional obligation. She also mentioned the Procurement Act, which, although not yet in force, would provide a legal framework for debarment of contractors who violate the law. The lack of enforcement of this act was seen as a regrettable gap in the system.

The judge declared the award of the contract unlawful and ordered the forfeiture of all profits made by Huluwethu. An audited statement of accounts will be required to determine the exact amount to be repaid. Additionally, the education department must take disciplinary action against the 16 officials involved in the contract award.

Accountability and Consequences

The SIU described the court’s decision as a significant step in enforcing accountability and ensuring that those responsible for mismanagement face consequences. The ruling reinforces the importance of transparency and adherence to legal procedures in public procurement.

This case highlights the need for strict compliance with procurement laws and the dangers of allowing personal interests to override public duty. The involvement of multiple officials in the process underscores the systemic nature of the problem, requiring comprehensive reforms to prevent similar incidents in the future.

The outcome of this case serves as a warning to all public officials and contractors that misuse of public funds and failure to follow proper procedures will not go unpunished. It also emphasizes the critical role of oversight bodies like the SIU in holding institutions accountable and protecting public resources.