KZN Education MEC must discipline officials for R2.5 million chemical toilets contract irregularities
The KwaZulu-Natal Department of Education has been ordered to discipline sixteen officials, implicated in the irregular awarding of a chemical toilets contract.
The Special Investigating Unit (SIU) said in a statement on Monday that the 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 court judgment that also set aside the unlawful contract and ordered the service provider, Hawulethu (Pty) Ltd, to repay all profits derived from it.
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 that the contract, valued at R2,53 million, 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 investigation further revealed that 16 officials from the Department of Education failed to follow mandatory supply chain management processes.
The investigation also showed that Hawulethu (Pty) Ltd was contacted and delivered goods before being formally appointed as a service provider, and that the company overcharged by over 100%.
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 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,” said the statement.
It added that 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 Department of Education, and the payment by Hawulethu of the legal costs of the review application.
The KZN Education department has been approached for comment.