Hawks investigating senior education department official over IT deals

The Hawks are investigating a senior national education department official and her husband — the former chairman of IT group Sizwe Africa — for their involvement in irregular payments of R330 million.

Sunday Times reported the payments related to an illegal contract to procure 55,000 tablets for schools in the Eastern Cape.

The rental agreement with the Ayo-owned firm was concluded in October 2019.

However, its details were first revealed to the public in a presentation at a meeting of Parliament’s Portfolio Committee on Education in July 2020.

At that time, the contract’s cost had already ballooned from R160 million to R404.8 million. The breakdown of the costs at the time was as follows:

• R192.4 million for 55,000 Samsung Galaxy Tab A 8.0-inch LTE tablets
• R95.9 million for SIM cards with data
• R31.6 million for maintenance over three years
• R18 million for kickstand cases
• R13 million for on-site delivery
• R5.9 million for Samsung Knox security features
• R4 million for apps
• R2.4 million for setup costs
• R659,450 for engraving
• R60,390 for screen protectors and pouches.
• 15% VAT

Shortly after this presentation, the Democratic Alliance called on the Public Protector to investigate the matter.

Among the big issues was that the department would not own the tablets but lease them, despite the fact that they cost about 65% more than when bought on the open market.

Subsequently, the contract’s estimated price increased to R537.4 million.

The State Information Technology Agency (Sita) found it unlawful and invalid as it had not been taken through the appropriate channels.

As government’s official ICT provider, Sita must procure products and services on behalf of nearly all government entities, apart from state-owned companies.

The agency obtained a High Court order in October 2020 interdicting the provincial department from continuing with the tablet contract.

Payments under investigation not part of tablet contract — Sizwe

The Hawks’ investigation is reportedly looking into the role of Dr Naledi Mbude-Mehana, who was head of the Eastern Cape Department of Education from March 2021 until May 2024, in negotiating payments to Sizwe Africa.

The investigation focuses on R330 million paid to Sizwe Africa in the last two months before Mbude-Mehana resigned from her position after being suspended.

Despite leaving the Eastern Cape education department through an undisclosed settlement with Eastern Cape Premier Oscar Mabuyane, she was appointed as deputy director for special projects at the National Department of Basic Education in 2023.

In comment to Sunday Times, Mbude-Mehana denied any impropriety, alleging that it was part of an attempt to discredit her and undermine her consideration for a senior position in the national department.

“Not a cent was paid to the interdicted contract,” she said.

Sizwe Africa told MyBroadband the report incorrectly conflated completely unrelated contracts into a single story.

“For clarity, the contracts referred to are for rental agreements dating back to around 2014,” Sizwe Africa said.

“The settlement agreement referred to in the media reports are for works related to rental agreements of the 2014 contract, and have nothing to do with the 2020 agreement for tablets, which is currently a matter before the courts.”

“The interdict on the 2020 agreement remains in force, and neither a settlement nor finalisation has been reached.

“Sizwe has not received any payments or settlement since the matter is still not finalised. Therefore, the allegation that Sizwe was paid for these 2020 contracts is inaccurate and false.”

Sizwe Africa said it was the party which initiated the investigation into irregular expenditure discovered during its 2022/2023 financial year.

“The company launched a formal internal investigation to ensure accountability after discovering various irregularities,” Sizwe said.

“The company welcomes the current Hawks investigation and the developments on the matter.”

Sizwe said it also publicly disclosed the discovery of financial irregularities through a joint voluntary SENS announcement issued by its holding companies.

“Said announcement confirmed that Sizwe was collaborating with external experts on an impartial investigation and had promptly suspended those implicated and initiated disciplinary proceedings,” the company said.

“Sizwe Africa IT Group has committed to co-operating fully with authorities to ensure a thorough and fair resolution to the matter.”

Marriage with Sizwe Africa chairman

Mbude-Mehana’s husband, Sizwe Africa executive chair Vukile Mehana — is reportedly also under investigation.

The pair were married a few months after Mbude-Mehana left the Eastern Cape education department.

During their engagements, Mehana allegedly sent a letter to the department demanding a settlement payment of R594 million.

The Sunday Times said the Hawks have specifically asked the department about the two payments in April and May 2022.

The agency is also seeking Mbude-Mehana’s declarations of interest for 2021, 2022, and 2023, as well as correspondence with Sizwe IT, to determine whether she disclosed her relationship with the chairman.

Although the payments themselves are now the main focus of the investigation, the disappearance of the vast majority of the tablets also caused massive embarrassment for the department.

In April 2021, it confirmed that less than 8,000 of the 55,000 tablets were returned by the matrics who received them in 2020.

The idea of the contract was that the tablets would be handed in and used by each subsequent matric group.

The Eastern Cape Department of Education confirmed in a letter dated 8 November 2024 that the Hawks had notified it of its investigation.

It said that the province’s treasury had also initiated an investigation into the contract, with a forensic investigating company appointed to probe the agreement in March 2024.

However, the department itself has not launched its own investigation into the dealings.

MyBroadband asked the basic education department for feedback on the allegations but they did not immediately respond to our questions.