SIU Uncovers R2.5 Million Irregularities in KZN School Toilet Contracts, 16 Officials Face Disciplinary Action

Special Tribunal Orders Action Against KZN Education Officials

The Special Investigating Unit (SIU) has uncovered significant irregularities in a KwaZulu-Natal Department of Education contract for the provision of 72 chemical toilets to 11 schools. Following an extensive probe, a Special Tribunal has ordered disciplinary action against 16 officials from the department and mandated the service provider, Hawulethu (Pty) Ltd, to repay all profits derived from the irregular contract. The contract, valued at more than R2.5 million (specifically R2,538,000.00), was awarded in June 2020, shortly after the lifting of the national lockdown during the COVID-19 pandemic.

Details of the Irregularities Uncovered

The SIU's investigation revealed a series of procurement breaches and financial mismanagement. The contract was awarded without any competitive bidding process, a direct violation of Section 217 of the Constitution, the Public Finance Management Act, and Treasury regulations. Furthermore, the contract was unlawfully extended.

Key findings of the investigation include:

• Hawulethu (Pty) Ltd was contacted and delivered goods before being formally appointed as a service provider.
• The company overcharged the department by more than 100%.
• Claims were submitted for services not rendered, such as servicing toilets during school holidays and for rent and servicing during specific periods in 2020.
• The service provider failed to declare conflicts of interest involving its director.
• Multiple payments were split to avoid procurement thresholds, constituting a breach of financial management laws.

Consequence Management and Official Response

The Special Tribunal's ruling declared the contract unlawful and set aside its awarding. As a result, Hawulethu (Pty) Ltd has been ordered to repay all profits, submit an audited statement of account within 30 days, and reimburse the department with interest and legal costs.

KwaZulu-Natal Education MEC, Sipho Hlomuka, has been explicitly ordered to initiate disciplinary proceedings against the 16 implicated officials. MEC Hlomuka has publicly accepted the findings and stated that he has directed the Head of Department to ensure disciplinary action is taken against all officials found to have violated supply-chain processes. The SIU investigation was authorized by President Cyril Ramaphosa under Proclamation R23 of 2020. Organisations like the National Professional Teachers' Organisation (NAPTOSA) and SADTU have voiced their support for the tribunal's order, emphasizing the importance of accountability.