EC education dept broke the law with mega-million tablet contract
Despite warnings, deal was made for 3-year e-learning scheme
The Eastern Cape education department broke the law when it signed a contract worth hundreds of millions of rand to lease 55,000 tablet devices and provide a virtual classroom solution for grade 12 pupils for three years.
And not only is the contract illegal, three well-placed, independent sources in the education department told the Dispatch the project would end up costing far more than the R538m publicly stated by education officials, including education MEC Fundile Gade — possibly as much as double that over the three years.
The contract, signed with Sizwe Africa IT Group, which has ties to Cape Town-based businessman Iqbal Survé, has been mired in controversy and conflicting statements over the total cost of the project have been made by the education department. Sizwe IT Group chair Vukile Mehana said he did not know about the money to be paid “but there are a number of companies involved in this contract, it is not our company alone”.
Today, the Dispatch can reveal that the head of the education department, Thembela Kojana, received a letter on July 3 from the State Information Technology Agency (Sita), stating the contract was unlawful and the department should not participate.
The Dispatch has seen this letter.
The education department entered into the contract with Sizwe by piggybacking on a contract the company has with the department of economic development, environmental affairs & tourism (Dedeat).
The education department asked to participate on contract: PP09-18/19-22: Asset Finance Solution for movable assets for Dedeat of ICT Goods and Services, and entered into a contractual agreement with Sizwe IT Group in April.
Sita received a letter from the education department on June 26, informing it of their participation in the Dedeat contract.
A week later, on July 3, Sita’s head in the Eastern Cape, Xolani Mbulawa, wrote to the education department warning it not to participate in the contract.
In this letter Mbulawa said: “It must be noted that Sita was approached for advice by the Eastern Cape provincial treasury on the same matter on March 23.
“The ECDEDEAT (Dedeat) failed to comply with the provisions of the Sita Act when it procured the services from Sizwe IT Group in that the services were not procured through Sita.
“Due to the fact the appointment of Sizwe IT Group was not in accordance with the Sita Act, such an award and the subsequent contracts are unlawful and the ECDoE (Eastern Cape department of education) is advised not to participate in this contract.”
Sita spokesperson Anthea Summers confirmed no approval had been granted.
“The Eastern Cape department of education did not get approval from the state Information Technology Agency and contravened Section 7(3) of the Sita Act,” Summers said in a written response to the Dispatch.
In terms of this section of the act, every government department is required to procure all information technology goods or services through Sita.
Summers said: “Sita also in March 2020 advised that Sita considers the participation on an existing contract as an unfair practice given the need for an open, competitive and fair process, given that there are multiple and capable service providers in the market, who are able to provide this service.”
Education department spokesperson Loyiso Pulumani said the provincial Treasury had given unconditional approval to participate in the contract.
“Provincial treasury further requested the department to inform Sita of this participation. The department duly complied with this requirement and informed Sita on June 26. We are now in the process of further engagements with Sita on this matter.”
Pulumani said; “As far as the department is concerned, we are participating in a contract that is lawful as it was legally awarded to Dedeat.”
Meanwhile, the Dispatch’s three education sources who claimed the real cost of the project was estimated at about R1.2bn over three years, alleged that lower figures had been presented publicly by officials to keep the media “guessing”.
In May, the department said the tender awarded to Sizwe IT Solutions was worth R160m, a figure that apparently applied to the virtual classroom.
In July, Kojana told the education portfolio committee in Bhisho that the contract was R404.8m, a figure that applied to the loaned tablets. In July the department said the total amount was R538m.
Sita also says the value of the contract is R538m.
But a Dispatch source claimed the deal had been decided “outside the education department corridors”.
“This [contract], as we understand it, is just over R1bn,” said the source.
Two other sources in senior positions in the department said the total contract value, including escalations and other projected incurred costs, was R1.2bn. However, no documentary evidence was supplied to substantiate this.
One of these two sources said: “We are told from the people who are within the procurement unit that this tender for tablets is worth more than R1bn. It is in the region of R1,2bn. This is not the first contract in this department to have skyrocketed while the media and the taxpayers are told it is worth little.”
“We are in dire need of schools and that R1.2bn can build some of them or refurbish hundreds of others. Why is it only the Eastern Cape, which has electricity backlogs in some areas and poor connection in others, buying tablets? Whose idea is this? The amounts I was shown are close to R1,2bn for three years of this deal. These prices will escalate, they [education officials] did not tell you that.”
Pulumani said these claims were being made by “unscrupulous faceless sources”.
“Your sources are very elusive because we provided you with evidence, your credibility of your sources defeats the logic. The costs spelt out in that presentation will not change and it will remain for the duration of the contract.”
Sizwe IT is run by former ANC chaplain and retired Methodist minister Vukile Mehana. He told the Dispatch on Friday he could not answer questions about the escalating value of the project.
“The department should answer those questions. I do not know how much this will cost in three years but all I know is there are a number of companies who are into this, it is not our company alone,” he said.
AYO Technology Solutions, which is chaired by controversial businessman and owner of Independent Newspapers Surve, owns a 55% stake in Sizwe Africa IT Group.
44,000 tablets have been delivered already and only Amathole district and Buffalo City have not received them.
Why is it only the Eastern Cape, which has electricity backlogs in some areas and poor connection in others, buying tablets? Whose idea is this?