STAFF REPORTER |
THE Gauteng Education service providers have been ordered to pay back profits derived from irregular R431 million deep cleaning contracts.
The Special Investigating Unit (SIU) has welcomed the Special Tribunal judgment that set aside R431 million contracts awarded to services providers by Gauteng Department of Education to decontaminate, disinfect and sanitize schools in response to COVID-19.
The Tribunal made the ruling after hearing that following the outbreak of the COVID-19 pandemic in March 2020 and the country being placed under lockdown, Gauteng Education Department illegally procured personal protective equipment from 49 service providers in breach of National Treasury regulations.
The SIU approached the Special Tribunal to review and set aside the contracts following an investigation, which revealed that Gauteng Education paid over R431 million to service providers pursuant to a process that was hap-hazard, unfair and littered with procurement irregularities.
On Friday, the court heard that opening of schools required certain cleaning protocols which includes disinfecting and sanitizing the school. However, judge, Lebogang Modiba, said that the procurement process did not comply with section 217(1) of the Constitution.
The SIU seeks to recover all profits made by service providers from the irregular contracts.
“To ensure the profits are calculated and recovered in full, the Special Tribunal ordered that the service providers must submit a statement and debatement of account in respect of their appointment, performance and payment to the SIU, to determine the profits derived. If the accounting and the sum of profit determined is disputed by either the SIU or the service providers, the parties shall approach the Special Tribunal for an appropriate order on supplemented papers as necessary,” said SIU Spokesperson Kaizer Kganyago.
“In the event that there is no dispute on the accounting and the sum of profits, the Special Tribunal ordered that such profit shall be paid to the SIU within 15 days of such agreement, together with interest. More than R60 million has been preserved pending final determination of profits derived from irregular contracts.”
Kganyago added that the investigation revealed that the procurement process was not cost-effective.
“The investigation revealed that the procurement process was not cost-effective, as service providers were not paid per square meter of the area cleaned. Rather, a senior official in the Gauteng Education appears 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 bear no relation to the work done by service providers or the cost of material used.”
Kganyago said that the outcome of this review application is a continuation of implementation of the SIU investigations outcomes and consequence management to recover financial losses suffered by State institutions.
“There are 45 matters enrolled in the Special Tribunal which are still awaiting adjudication to the combined value of R2.1 billion and will result in further recoveries for the State.”
-Inside Education
