The Member of the Executive Council (MEC) of Education in KwaZulu-Natal has been ordered by the Special Tribunal to initiate disciplinary proceedings against multiple departmental officials implicated in the irregular awarding and extension of a R2.5 million contract for chemical toilets at schools. This order was issued as part of a broader judgment that also set aside the unlawful contract and ordered the service provider, Hawulethu (Pty) Ltd, to repay all profits derived from it.

The MEC is ordered to institute disciplinary action against the following officials:

1. Ms Ngobi (Acting Director: Demand and Acquisition)
   – Member of the Quotation Evaluation Committee (QEC)
2. Mr Ngcobo (Deputy Director: Finance)
   – Nominated Hawulethu (Pty) Ltd and was the chairperson of the QEC
3. Ms Madiba (Acting Director: Finance)
   – Member of the QEC
4. Mr Mavundla (Admin Clerk)
   – Member of the Quotation Adjudication Committee (QAC)
5. Ms Hadebe (Chief Education Specialist)
   – Chairperson of the QAC
6. Ms Gumede (Chief Director: Operations Management)
   – Authorised the extension of the contract with Hawulethu (Pty) Ltd
7. Ms Naidoo (Accounting Clerk)
   – Member of the QEC and allocated/signed as the budget controller
8. Ms Mthethwa (Educational Specialist)
   – Approved the requisition and authority to purchase
9. Mr Maharaj (Educational Specialist)
   – Member of the QAC
10. Mr Reddy (Chief Admin Clerk)
    – Approved commitments and final payment orders to Hawulethu (Pty) Ltd
11. Ms Mabaso (Provincial Admin Clerk)
    – Approved final payment order to Hawulethu (Pty) Ltd
12. Mr Nkosi (Educational Specialist)
    – Approved extension of the contract of Hawulethu (Pty) Ltd
13. Ms Nkwanyana (Educational Specialist)
    – Member of the QAC
14. Ms Dlamini (Deputy Director General IDS)
    – Approved the extension of the contract
15. Mr Mthembu (Deputy Director General)
    – Approved the extension of the project
16. Ms Brijlal (Admin Clerk)
    – Signed and checked the final payment order

The Special Investigating Unit (SIU) welcomes this 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 this responsibility squarely with the most senior official in the education department, reinforcing accountability where it matters most.

Furthermore, consequential relief ordered by the Tribunal includes the forfeiture of all profits derived by Hawulethu from the contract, the submission of an audited statement of account within 30 days, the repayment of all profits plus interest to the Department of Education, and the payment by Hawulethu of the legal costs of the review application.

This judgment follows an SIU investigation into the procurement of 72 chemical toilets for schools in KwaZulu-Natal in June 2020. The investigation found that the contract, valued at R2,538,000.00, was awarded without any competitive bidding process, in direct violation of Section 217 of the Constitution, the Public Finance Management Act and Treasury regulations.

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 per cent.

The SIU’s 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.

The SIU will continue to investigate and litigate against maladministration and corruption in state institutions, in line with its mandate to protect public resources and hold accountable those responsible for irregularities.
President Cyril Ramaphosa directed the SIU, under Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, malpractice, and payments made by State institutions in connection with PPE procurement and the conduct of State employees.

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. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence of criminal conduct it uncovers to the National Prosecuting Authority for further action.

Enquiries: Kaizer Kganyago

Spokesperson: Special Investigating Unit

Cell: 082 306 8888

E-mail: KKganyago@siu.org.za