South Africa’s long-running Covid-19 procurement scandals have once again returned to the spotlight after the Special Investigating Unit (SIU) recovered R25 million linked to controversial school sanitising contracts awarded during the pandemic.
- SIU secures multimillion-rand settlement agreements
- Offshore trusts and linked entities among those repaying funds
- Covid-19 sanitising scandal exposed procurement failures
- SIU findings reveal breakdown in procurement controls
- Former officials dismissed after disciplinary proceedings
- Investigators warn sanitisation scandal may be only “tip of the iceberg”
- Government welcomes recovery efforts
- Conclusion
The recovery follows years of investigations into what critics described as excessive and irregular spending by the Gauteng Department of Education (GDE) during the height of Covid-19 lockdown restrictions and school reopening preparations.
Authorities say the money forms part of broader efforts to reclaim public funds lost through questionable procurement practices implemented during the national state of disaster.
SIU secures multimillion-rand settlement agreements
The SIU confirmed that it had finalised settlement agreements with multiple service providers, trusts and individuals linked to contracts awarded for the decontamination and sanitisation of Gauteng schools.
The agreements stem from a landmark 2022 ruling by the Special Tribunal, which reviewed and set aside contracts valued at approximately R431 million.
Those contracts were originally issued to companies tasked with cleaning, disinfecting and sanitising schools before learners returned to classrooms during the pandemic.
According to SIU spokesperson Selby Makgotho, entities linked to Chachulani Group Investment Holdings agreed to repay R25 million from the roughly R40 million they had received from the department.
The settlement involves 16 service providers, trusts and individuals connected to the network of companies under investigation.
Offshore trusts and linked entities among those repaying funds
Investigators revealed that financial institutions had been authorised to debit preserved funds directly from the accounts of the implicated entities.
The largest portion of the recovery will come from the Naledzi Investment Trust, which is expected to contribute more than R20 million through offshore and domestic accounts.
Other companies involved in the repayment include Netvision Energy Savers, Mpale Investments Holdings and Chachulani Group Investment Holdings.
The SIU stated that financial institutions are required to transfer the recovered funds into its accounts within seven days once the Special Tribunal formally grants the settlement order.
Covid-19 sanitising scandal exposed procurement failures
The scandal first gained widespread public attention after investigative reporting raised concerns about the scale and legitimacy of the spending.
Reports revealed that the Gauteng Department of Education spent hundreds of millions of rand on school sanitising services between June and August 2020, despite health guidelines recommending ordinary surface cleaning rather than costly fogging and deep-cleaning operations.
Investigations found that many companies awarded contracts allegedly lacked any proven expertise in cleaning or disinfection services.
Critics also questioned how prices were determined, with evidence suggesting that schools were charged fixed amounts regardless of their actual size or cleaning requirements.
SIU findings reveal breakdown in procurement controls
The SIU’s investigation uncovered what it described as deeply flawed procurement processes within the department.
According to findings, service providers were sourced informally through referrals, supplier databases and even WhatsApp communications without proper involvement from the department’s Supply Chain Management division.
Investigators further found that pricing structures appeared arbitrary and lacked proper cost analysis.
Primary schools were allegedly charged between R250,000 and R270,000 for sanitisation, while secondary schools and district offices faced even higher amounts.
The SIU concluded that the selection and appointment of service providers violated constitutional procurement requirements designed to ensure fairness, transparency and competitiveness.
Officials involved in the process reportedly admitted that established procurement procedures were bypassed.
Former officials dismissed after disciplinary proceedings
The Gauteng Department of Education confirmed that disciplinary action had been taken against senior officials implicated in the procurement irregularities.
The department stated that three senior managers — including officials linked to supply chain management and infrastructure — were found guilty during disciplinary hearings and subsequently dismissed.
One former manager is also facing an ongoing criminal corruption case.
Two former officials have challenged their dismissals through arbitration proceedings, which are still pending.
Investigators warn sanitisation scandal may be only “tip of the iceberg”
Anti-corruption activists and investigators say the recovered R25 million represents only a small fraction of potentially wasted public funds during the pandemic.
Former Maverick Citizen editor Mark Heywood described the school sanitisation saga as part of a much wider pattern of alleged Covid-19 procurement abuse across government institutions.
He argued that billions of rand may have been lost nationally through similar disinfection and sanitisation contracts between 2020 and 2021.
Heywood also stressed the importance of public transparency, noting that detailed provincial expenditure reports initially helped expose irregular spending patterns before those disclosures were later discontinued.
Government welcomes recovery efforts
Gauteng MEC for Education, Sport, Arts, Culture and Recreation Lebogang Maile welcomed the SIU’s progress in recovering funds linked to the scandal.
Maile said the department hoped the recoveries and disciplinary actions would discourage future corruption and protect public resources intended for education.
He also called on law enforcement agencies to act decisively against individuals involved in unethical conduct that undermines public service delivery.
Conclusion
The SIU’s R25 million recovery marks one of the most significant accountability outcomes linked to Covid-19 procurement investigations in Gauteng so far. However, with hundreds of millions of rand still under scrutiny and broader allegations of pandemic-era corruption continuing to surface, pressure remains on authorities to pursue further recoveries and criminal prosecutions.
