SIU Recovers Millions in COVID-19 School Sanitisation Scandal by Gauteng Education

South Africa’s Special Investigating Unit (SIU) has secured multiple settlement agreements in connection with controversial COVID-19 school sanitisation contracts worth hundreds of millions of rand awarded by the Gauteng Department of Education (GDE) during the pandemic.

The agreements form part of ongoing efforts to recover public funds lost through irregular procurement processes linked to decontamination, disinfection and sanitisation contracts issued at the height of the COVID-19 national disaster.

According to the SIU, several service providers and individuals connected to the Chachulani Group Investment Holdings matter have agreed to repay R25 million to the state. The amount forms part of approximately R40 million originally paid by the Gauteng Department of Education under contracts that were later declared unlawful.

The controversial contracts formed part of a wider R431 million procurement programme established during the COVID-19 pandemic to sanitise schools and educational facilities ahead of reopening under disaster management regulations.

The contracts were reviewed and ultimately set aside by the Special Tribunal in 2022 following findings of serious procurement irregularities and unlawful conduct.

The SIU described the settlements as a significant step in recovering taxpayer funds and restoring accountability in public procurement systems following widespread concerns over corruption linked to emergency COVID-19 spending.

The investigations were launched after President Cyril Ramaphosa issued Proclamation R23 of 2020 authorising the SIU to investigate allegations of corruption, maladministration and irregular payments associated with personal protective equipment (PPE) procurement and related pandemic-era contracts across government institutions.

Officials confirmed that at least 16 service providers and individuals have now agreed to settlement terms involving the recovery of preserved funds from their bank accounts.

Under the agreements, financial institutions are required to transfer the specified amounts into the SIU’s accounts within seven days once the Special Tribunal formally grants the settlement order.

The latest recovery action follows an earlier Special Tribunal order preserving assets worth approximately R27 million pending the outcome of the legal review process, which was finalised in 2022.

The SIU investigation uncovered extensive irregularities in the way the Gauteng Department of Education handled procurement for school sanitisation services during the pandemic.

Investigators found that after schools were temporarily closed in March 2020 and later reopened under COVID-19 regulations in June 2020, the department introduced sanitisation protocols requiring schools with reported COVID-19 cases to close temporarily for decontamination and cleaning.

However, the SIU discovered that service providers were sourced informally from existing supplier databases, referrals and even WhatsApp communications without proper involvement of the Department’s Supply Chain Management (SCM) division, which is legally responsible for sourcing and vetting suppliers.

The investigation further revealed that procurement procedures lacked transparency, fairness and competitiveness as required under Section 217 of South Africa’s Constitution.

According to the SIU, senior officials within the department admitted that prescribed supply chain management procedures were bypassed during the procurement process.

Investigators also found that payment structures for the sanitisation contracts were not based on measurable work or cost calculations.

Instead of charging based on the size of facilities cleaned or actual service costs, fixed fee structures were reportedly applied arbitrarily. Primary schools were allegedly charged between R250,000 and R270,000 per sanitisation, secondary schools between R250,000 and R290,000, while district offices were billed between R250,000 and R300,000.

The SIU concluded that these fees were excessive, disproportionate to the actual work performed and not reflective of material or operational costs involved in the sanitisation services.

Officials stated that the appointment of service providers was conducted in a haphazard and inequitable manner that violated constitutional procurement requirements designed to ensure fairness, transparency and cost-effectiveness in public spending.

The SIU emphasized that its investigations form part of broader efforts to strengthen accountability and combat corruption linked to emergency procurement during the COVID-19 pandemic.

In addition to civil recovery proceedings, the unit confirmed that evidence suggesting criminal conduct will be referred to the National Prosecuting Authority (NPA) for possible prosecution.

Under the Special Investigating Units and Special Tribunals Act, the SIU is empowered to pursue civil litigation through the High Court or Special Tribunal to recover losses arising from corruption, fraud and maladministration within state institutions.

The case is one of several high-profile COVID-19 procurement investigations undertaken in South Africa following widespread allegations of irregular spending, inflated contracts and corruption during the national state of disaster.

Governance analysts say the latest settlements highlight both the scale of procurement weaknesses exposed during the pandemic and the growing pressure on authorities to improve oversight, strengthen public procurement systems and ensure accountability for misuse of public funds.