The Special Tribunal has ordered the KwaZulu-Natal education MEC, Sipho Hlomuka, to take disciplinary action against 16 departmental officials implicated in the irregular awarding and extension of a R2.5-million contract for mobile chemical toilets at schools.
The ruling sets aside the unlawful contract and forces the service provider, Hawulethu, to repay all profits.
The tribunal’s ruling forms part of a broader Special Investigating Unit (SIU) probe into the June 2020 procurement of 72 chemical toilets for schools.
This occurred after the SIU found that the contract had been awarded without any competitive bidding process, which violated Section 217 of the constitution, the Public Finance Management Act, and Treasury regulations.
PPE procurement irregularities
The investigation was initiated under President Cyril Ramaphosa’s Proclamation R23 of 2020, empowering the SIU to probe personal protective equipment-related procurement irregularities and pursue civil litigation to recover public funds.
Sixteen officials, ranging from clerks to deputy director-generals, were found to have flouted mandatory supply-chain management rules.
Their actions included approving irregular extensions, splitting payments to bypass procurement thresholds, signing off on final payments, and authorising commitments without due process.
Among those named are Ms Ngobi, acting director for demand and acquisition; Mr Ngcobo, deputy director for finance and chairperson of the quotation evaluation committee; Ms Gumede, chief director for operations management, who authorised an irregular extension; and two deputy director-generals, Ms Dlamini and Mr Mthembu, who approved the continuation of the unlawful contract.
The SIU found that Hawulethu delivered goods even before it was formally appointed and charged prices more than 100% above market rate.
It also submitted claims for services not rendered and failed to declare conflicts of interest involving one of its directors.
Accountability strengthened
The SIU welcomed the tribunal’s ruling.
“This judgment goes beyond invalidating an unlawful contract; it strengthens accountability in the public service,” the SIU said.
“For too long, irregular procurement has gone unchecked. The tribunal’s decision sends a clear message that those responsible must face consequences.”
The unit further emphasised the importance of leadership accountability.
“By directing the MEC to act, the tribunal reinforces that compliance with the law is not optional. Senior officials must ensure that public resources are protected,” the SIU added.
Additional tribunal orders include the forfeiture of all profits earned by Hawulethu, an audited statement of all payments within 30 days, repayment of profits with interest, and payment of the state’s legal costs.
