A company that has already scored over R100-million in the KwaZulu-Natal sanitary pads drive for rural schools is set to bag even more money after the provincial department of education extended its tender by two more years without advertising it.
The company, Access Medical, first won the controversial tender in 2022, and there was an uproar when it emerged that the sanitary pads were not being given to needy learners but were being kept in storerooms.
There were also allegations that the drive to provide sanitary pads to poor learners from rural schools in the province was a money-making scheme devised by corrupt officials within the department and some ANC politicians in the province.
Despite the tender having always been shrouded by controversy, the chief director for rural and inclusive education, T.P.J. Khoza, motivated for the tender to be extended before it expires in September.
In a motivation letter on March 31, which was obtained by the Sunday World, Khoza told the head of the department, Nkosinathi Ngcobo, that it would be cost-effective to keep Access Medical on board.
Smooth continuation of services
“Extending the contract with the existing service provider will ensure smooth continuation of services without interruption,” Khoza wrote in the letter to Ngcobo.
“Given the existing service provider’s familiarity with our requirements and the logistics of delivery, extending the contract will save time and resources that would be spent on rendering and onboarding a new provider.
“Access Medical is charging R14.83 per pack of 12 towels, which is far below the charge in other provinces for the same quantity and deviation to extend contract 0127e/2022/2023 quality, which ranges from R24 to R35. Contract extension will be cost-effective.”
In the same letter, Khoza revealed that the department owed Access Medical R66-million for sanitary items that have already been provided, and giving the tender to another company would not make business sense.
“Due to financial constraints, the department owes Access Medical R66 368 291.59 for services they have already rendered.
“Contracting a new service provider while owing the current one such a huge sum of money will put the department in an invidious position.
“The consideration of the contract extension is further based on Access Medical agreeing to the following: not to charge the department interest for the balance owed to them. To continue supplying and completing all new orders issued despite the department having a debt with them on a previous order. Price increases during the extended period of the contract are not to exceed the CPIX [consumer price index].”
Financial implications outlined
Khoza then outlined the financial implications for Ngcobo.
“Financial implications: a) the budget for 2026/2027 is R 62 883 000; b) the budget for 2027/2028 is R 65 713 000; c) the department contributes with an equitable share allocation of R 30 000 000 in every financial year to top up the National Treasury budget allocation,” he added and further recommended that Ngcobo give the nod to the extension.
Despite initial concerns that the auditor-general might flag the extension as irregular, Ngcobo approved it.
This is contained in an internal memo dated July 18, which he wrote to Yali Joi, the controversial chief financial officer of the department.
Ngcobo justified his decision by asserting that advertising the tender would force the cash-strapped department to pay two service providers for the same service.
“Appointing a new service provider would mean that the department would have to, at some point, pay two different service providers under the same programme,” he said.
The spokesperson of the department, Muzi Mahlambi, did not respond when asked about the matter.
