The Democratic Alliance (DA) in Mpumalanga welcomes a Forensic Report ordering the Provincial Department of Education to recover back nearly R200 000 from two service providers who overcharged them for questionable renovations and fencing of a guardhouse in their Ehlanzeni District Offices.
Early last year, Premier Mandla Ndlovu, commissioned a Forensic Investigation after a public outcry and media reports that the Mpumalanga Department of Education (DoE) and its HOD, Lucy Moyane, allegedly signed-off over R2.1 million for the refurbishment and fencing of the toilet-size guardhouse at the Department’s Ehlanzeni District offices at KaNyamazane outside Mbombela.
Rakoma and Associates Incorporated were appointed to do the Forensic Investigation. In their report, the forensic investigators mentioned that there was a deliberate and irregular appointment of two companies to do the same nature and the same scope of the project. They said this was done to avoid exceeding the prescribed threshold of R1 million.
According to the report, Mhlotini Trading was appointed for renovations of the guardhouse and installation of 250m perimeter fence at a total cost of R993 519; while Indumane Trading was appointed at a total cost of R956 535 for the installation of 350m perimeter fence.
The Forensic Investigators said that the deliberate split of the tender has resulted in the irregular appointments of the two service providers. They said this was in contravention of the PFMA SCM instruction No.2 of 2021/2022, and Section 6.5.4.2 of the DoE revised SCM Policy dated 6 February 2023.
The Forensic Report also mentions that the appointment of Indumane Trading at the total of R956 535 for the installation of the 350m fencing was an irregular appointment leading to irregular, fruitless, and wasteful expenditure being incurred by the Mpumalanga Department of Education.
The report also reveals that Mhlotini Trading’s guardhouse contract shows an over-claim o0f 7% over the measured work value. It also reveals that Indumane Trading’s fencing contract exhibits an over-claim of 13% and exceeds the value of work actually completed. It is stated that this discrepancy arose from billed work that was not even performed.
In its conclusion, the Forensic Report recommended that in consultation with their legal team, the Mpumalanga Department of Education should consider the recovery of the R195 734 overpayments from the two service providers as follows:
- R66 987 overpayment should be recovered from Mhlotini Trading; and
- R127 746 overpayment should be recovered from Indumane Trading.
The DA will write to the current MEC of Education, Lindi Masina, asking her to take disciplinary action against the six departmental officials who have been identified in the report as responsible for financial misconduct. We will also put pressure on the department to blacklist all these companies who have been implicated on this matter.