The Special Investigating Unit (SIU) has completed several settlement agreements with service providers and individuals linked to the R431 million in decontamination, disinfection, and sanitisation of school contracts awarded by the Gauteng Department of Education (GDE) at the height of the COVID-19 pandemic.
The contracts were reviewed and set aside by the Special Tribunal in 2022.
“The SIU has since concluded settlement agreements with some service providers and individuals linked to the Chachulani Group Investment Holdings (Pty) Ltd respondents, who have agreed to pay the SIU R25 million in full, out of the R40 million paid by GDE.
“This settlement is a critical outcome of the SIU’s relentless efforts to recover public funds lost during the COVID-19 National State of Disaster. The SIU remains committed to protecting public funds, restoring integrity in procurement and ensuring that those who unlawfully benefit from state contracts are brought to justice.
“President Cyril Ramaphosa directed the SIU, under Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, and malpractice, as well as payments made by State institutions, in relation to PPE [Personal Protective Equipment] procurement and the conduct of State employees,” the SIU said on Thursday.
The service providers and individuals who agreed to the settlements are at least 16 and have “consented to the following preserved amounts being debited from their respective bank accounts”.
“The financial institutions are required to transfer the settlement amount into the SIU’s bank account within seven days of the Tribunal granting the order.
“This follows the Special Tribunal’s order preserving assets worth R27 million pending the final determination of the review application, which was finalised in 2022,” the SIU said.
The dodgy contracts
The SIU investigation found that the GDE deviated from standard procurement processes after schools were closed during the peak of the pandemic in March 2020 and subsequently reopened in June 2020 under the COVID-19 Disaster Management Regulations.
“As part of preparations for the reopening of schools, the GDE implemented cleaning protocols requiring schools with reported COVID-19 cases to close temporarily for decontamination and sanitisation.
“The SIU’s probe found that service providers were sourced informally from existing supplier databases, referrals, and WhatsApp messages without the involvement of the GDE’s Supply Chain Management [SCM] division, despite SCM being responsible for sourcing and vetting suppliers,” the corruption busting unit said.
The procurement process was then found to not be cost-effective as “service providers were not paid per square metre of the area cleaned”.
“Rather, a senior official in the GDE appeared to have arbitrarily decided to offer a fee of R250 000 to R270 000 for the decontamination of primary schools; R250 000 to R290 000 for secondary schools; and R250 000 to R300 000 for district offices. The fees charged were not proportionate to the work performed by the service providers or the cost of materials used.
“The SIU found that the selection and appointment of the service providers were conducted in a haphazard, unfair, and inequitable manner, contrary to the requirements of Section 217 of the Constitution.
“Senior officials involved in the procurement process also admitted that prescribed SCM procedures were not followed,” the SIU added.
The unit will refer to the National Prosecuting Authority any allegations of criminal behaviour.
“The SIU is also 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,” the SIU said. – SAnews.gov.za
